Aerospace and Defence Policy 2016 - Land Allotment

The Gujarat Aerospace & Defence Policy 2016 was introduced by the Industries & Mines Department, Government of Gujarat. Its purpose is to position Gujarat as a major manufacturing hub for aerospace and defence industries by attracting investment, building infrastructure, developing supply-chain & skills, and providing a set of competitive incentives including land allotment benefits. The policy benefits you as an MSME or a specialised A&D unit by offering access to land at favourable rates , reimbursement of stamp/registration duties, and thereby lowering upfront cost of setting up manufacturing/maintenance/R&D units in the A&D sector.

Key Features
Financial Assistance
Eligibility Criteria
Documents Required
Application Process for the Scheme

Key Features

Government land allotment at 50% of Jantri rate: The policy states that when government land is available for setting up A&D manufacturing facilities, it will be allotted at half the prevailing Jantri rate for the duration of the policy. This significantly lowers land cost burden.
Stamp duty & registration fee reimbursement: To facilitate acquisition or lease of land for A&D units, the policy provides that the state will reimburse 100% of the stamp duty and registration charges paid for purchase, lease or mortgage of land meant for A&D units. That improves affordability of land acquisition.
Support for clusters/testing ranges/MRO infrastructure: Recognising that aerospace & defence manufacturing also needs special infrastructure , the policy includes land/infrastructure incentives to promote ecosystem. This means that units may locate within such designated clusters/parks and avail special land/infrastructure support.
Complementary incentives: While land/allotment is one component, the policy also offers interest subsidy, power & electricity duty exemptions, VAT/CST/SGST reimbursements and R&D support. Having affordable land goes hand-in-hand with these to make the business case for launching A&D manufacturing in Gujarat.

Financial Assistance

Component	Assistance Provided	Detailed Explanation & Example
Government land allotment rate	Land allotted at 50% of prevailing Jantri rate when government land is available.	Example: Suppose prevailing Jantri rate for industrial land in a region is ₹ 1,000 per sq. m. Under the policy you may pay ~₹ 500 per sq. m if eligible and government-land is available, lowering land cost by ~50%.
Stamp Duty & Registration Fee	100% reimbursement of stamp duty & registration charges paid for purchase or lease or mortgage for eligible A&D land.	Example: If you purchase/lease land for your aerospace unit and pay ₹ 10 lakh as stamp duty & registration fees, the state will reimburse the full amount .
Additional land or infrastructure incentives	–	While the policy does not specify additional numerical assistance for land beyond these, units located in dedicated A&D clusters or special investment regions may further negotiate infrastructure support or training or testing infrastructure via separate notifications.

Eligibility Criteria

Who can apply:

Enterprises in aerospace & defence manufacturing as defined within the policy.
Entities setting up new units or expanding existing ones within Gujarat under the policy timeframe. Likely meeting minimum investment or capacity thresholds.
Must register and apply under the policy via the state nodal agency.

Who cannot apply:

Units outside the defined A&D sector activities.
Units that do not meet minimum investment/production/start-up timelines as per the policy must refer to detailed guidelines.
Projects that have already availed similar land & fiscal benefits from other state schemes unless allowed.
Those failing to comply with land allotment conditions .

Documents Required

Application form for A&D Policy incentives and land allotment.
Project report/investment plan specifying location, land need , activity, fixed capital investment, employment.
Company registration/incorporation certificate.
Land proposal: preferred location, land use, lease/purchase intent.
Proof of new land allotment or state land mapping .
Commitment/declaration of compliance with policy conditions and timelines.
Financial projections, employment estimates.
Any additional documents as per the Industries & Mines Department guidelines .

Application Process for the Scheme

Option 1: Apply with Bullit

Click here to start with guided support. Our team verifies eligibility, compiles documents, and handles application & follow-ups on your behalf. You can monitor progress while focusing on operations.

Recommended for: Investors in the A&D sector seeking support in land/lease allotment and associated incentives.

Option 2: Apply directly via Government Portal

Visit the Industries & Mines Department, Gujarat website → Section for A&D Policy / Incentive Scheme.
Fill out the application form for approval under the A&D Policy 2016, specifying project details including land requirement, location, investment, employment estimates, etc.
Once sanctioned, select or identify a land parcel and request allotment or subsidy eligibility for land/lease at 50% Jantri rate or stamp/registration reimbursement.
After land allotment, complete lease/purchase, commence production/operations as per policy milestones, then claim incentives in time.

Option 3: Liaise with State Nodal Agency / Investment Facilitation

Contact the State’s investment facilitation cell or the Industries & Mines Department’s A&D unit.
Get land availability information and work through land allotment documentation with facilitation.
Maintain compliance with policy conditions to avail the land & other incentives.