New Delhi, Aug. 10 (ANI): Rajasthan Chief Minister Vasundhara Raje during her meeting with Defence Minister Manohar Parrikar in New Delhi on Sunday said that Rajasthan provides abundant opportunities of investment and may be considered as a venue for expansion plans of defence sector public sector undertakings which manufacture defence equipments like Hindustan Aeronautics Limited (HAL), Bharat Electronics Limited (BEL), Bharat Earth Movers Limited (BEML), Bharat Dynamics Limited (BDL) and Mishra Dhatu Nigam Limited (MIDHANI).
She requested Parrikar to tap the existing possibilities of investment Rajasthan has in defence sector.
She said an industry friendly atmosphere has been created in Rajasthan and well-known industries of the world are already doing business in Rajasthan.
“Foreign investment zones like Japanese Zone have been set up in Neemrana, Alwar,” she said.
Raje also said Reurgent Rajasthan Partnership Summit is being organized in Jaipur on 19-20 November, 2015 and investors from the country and abroad are expected to attend the event.
She suggested that Defence Research and Development Organization (DRDO) may consider further expansion plans of its defence research activities in Rajasthan. She said state government is providing various incentives to defence sector manufacturing units to promote investment in defence sector.
The chief minister said RIICO has large chunks of land over 500 acre available readily near Jaipur, Jaisalmer and Barmer where defence sector manufacturing companies can invest.
She said under Rajasthan Investment Promotion Scheme (RIPS-2014) the state government has provided package of incentives including investment subsidy of 65 percent of VAT and CST for 10 years to benefit the enterprises making an investment equal to or above Rs. 500 crore.
“Provision has been made to provide investment subsidy of 50 percent of VAT and CST for 7 years to the enterprises making investment from Rs. 100 to 500 crores in defence sector. Provision has also been made to provide 50 percent exemption from payment of Entry Tax on capital goods,” she said.
Raje further said major Indian Private Players and PSUs working in the defence sector should be encouraged for more investment in Rajasthan.
She suggested that Larsen and Toubro, Tata Advance System Limited (TASL), Mahindra Aerospace and Defence Systems, Reliance Group, Kirloskar Brothers, Sterlite Group and Ashok Leyland (Hinduja Group) which are already working in defence sector manufacturing could be promoted to invest in Rajasthan. She also mentioned the possibilities of investment in defence sector by new joint ventures of foreign companies in India.
Raje said the defence sector is emerging as a new sector from the investment point of view where there are abundant opportunities of domestic and foreign investment besides employment generation. She said geographical conditions of Rajasthan are favourable for investment in defence sector.
“Apart from infrastructure development various corridors are being developed which are safe from the strategic point of view. Delhi-Mumbai Industrial Corridor passing from Rajasthan will generate more strong possibilities in skill development and will provide smooth transportation of raw material and safe delivery of manufactured cargo to the Ports. Thus Rajasthan has become an ideal venue for expansion of defence sector PSUs,” she said.
During the meeting various issues related to security and development of long international border of Rajasthan, issues related to development of roads and soldier welfare were also discussed in detail. (ANI)