Encore Research & Allen & Alvan to invest 581 cr in drone unit in UP

Encore Research & Allen & Alvan to invest 581 cr in drone unit in UP

Wed, 08/25/2021 - 12:01
Posted in:

New Delhi, Aug 24

In all 19 companies allotted land to make defence equipment in Aligarh node of Defence Corridor

Thousands of people to get permanent employment in the corridor covering Lucknow, Kanpur, Chitrakoot, Jhansi, Agra and Aligarh districts

Two companies, namely Encore Research Lab LLP and Allen & Alvan Private Limited are investing Rs 550 crore and Rs 30.75 crore respectively to set up their plants in the Aligarh node of the Defence Corridor to make drones for the Army and the security forces at large.

The Uttar Pradesh Expressways Industrial Development Authority (UPEIDA) has already allotted 10 hectares of land to Encore Research Lab LLP Company and to Allen & Alvan Pvt Ltd and the companies will start construction of their units soon. 

The demand for drones is increasing rapidly in India for its multipurpose use, such as disaster management, security, agriculture, business, media and for delivering goods and medicines in flood affected as well as remote and inaccessible areas.

With growing investment in the Defence Corridor in UP, the state is poised to become self-reliant in defence product manufacturing on the one hand, while on the other, the corridor will facilitate supply of state-of-the-art drones to the Indian Army. Besides, the Defence Corridor will also offer permanent jobs to thousands of people of the state.

It is noteworthy that Prime Minister Narendra Modi had announced the creation of a Defence Corridor in UP during the Investors' Summit held in Lucknow in 2018. Subsequently, the Yogi Government took concrete steps to establish Defence Corridor in UP covering Lucknow, Kanpur, Chitrakoot, Jhansi, Agra and Aligarh nodes.

Later on, domestic and foreign companies related to defence products signed memoranda of understanding (MoUs) worth Rs 50,000 crore for investment in the Corridor during the Defence Expo held in Lucknow in 2020. Most of the MoUs have been signed for the corridor being built in Andla on Khair Road in Aligarh.

CM Yogi  has directed officials to ensure that the potential investors in the Defence Corridor did not face any hurdles in procuring land, or in other procedures for setting up their units. The CM’s efforts have yielded positive outcomes as many companies have lately shown keen interest in setting up their plants in Lucknow.

According to UPEIDA officials, altogether 29 companies have submitted their proposals to the Government for setting up factories in Aligarh node and have requested for land. Eleven companies in Lucknow node, six in Jhansi and eight in Kanpur node have requested for land to set up their plants. Acting on the proposals received from various companies, UPEIDA has so far allotted 55.40 hectares of land to 19 reputed companies in the Aligarh node. These 19 companies will invest Rs 1245.75 crore to make defence equipment.

The companies that have been allotted land include among others Sadicate Innovation International, which will set up its factory over 10 hectares of land at the cost of Rs 150 crore. Jai Sai Anu Overseas will build its factory spread over 4.5 hectares of land at an estimated cost of Rs 100 crore, whereas Milkar Defense Pvt Ltd is investing Rs 98.25 crore to build its unit on four hectares of land. Similarly, Tractrix Auto Dynamics has been allotted two hectares of land to set up its unit at the cost of Rs 40 crore.

Apart from this, Nitya Creation India, PBM Insolation Pvt Ltd, Deep Explo Equipment Pvt Ltd, Veriwin Defense Pvt Ltd, Advance Fire & Safety, Crimson Energy Exports, P-2 Logitech and Cobra Industries have also been provided land for setting up factories. Soon the above mentioned companies will start the process of setting up their factories.

According to the  officials, the land allotment work has been completed in Aligarh node. Defence experts have said that all defence products ranging from drones and weapons to uniforms will be manufactured at the Defence Corridor in UP.