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Module 8 • Defence & Semiconductors2026-05-0812 min read

UP Defence Industrial Corridor & High-Tech Ecosystem: 6 Nodes, ₹35,526 Cr MoUs & Semiconductor Policy

Target Exam: UPPCS / UPPSC Combined State Services•Official Sources: Uttar Pradesh State Gazettes, Budget & Official ReleasesUttar Pradesh State Gazettes, Budget & Official Releases

1. UP Defence Industrial Corridor (UP DIC)

•
Six Designated Nodes:
1.
Agra
2.
Aligarh
3.
Chitrakoot
4.
Jhansi
5.
Kanpur
6.
Lucknow
•
Progress Aggregates (As of March 2026):
•
Investment proposals attracted: ₹35,526.76 crore.
•
Total industrial land acquired/procured: 2,040 hectares.
•
Land allotted to defense manufacturers: 977.54 hectares.
•
MoUs signed: 200 defense and aerospace enterprises with expected direct employment for 53,263 professionals.
•
Flagship Anchor Units:
•
Lucknow Node: BrahMos Aerospace Next-Gen (BrahMos-NG) cruise missile manufacturing and testing facility.
•
Jhansi Node: Bharat Dynamics Limited (BDL) propulsion and rocket motor manufacturing complex.
•
Kanpur Node: Unmanned Aerial Vehicle (UAV) test range, high-grade defense ordnance, and ballistic protective equipment.
•
Aligarh Node: Small arms, drone components, and precision mechanical assemblies.
•
Incentive Architecture: Capital subsidy (25–35% up to ₹500–1,000 crore), logistics transport subsidy (up to ₹25 cr for exports), skill development grant (₹2 lakh/worker/yr up to 10,000 workers), and R&D Centre of Excellence grants up to ₹10 crore.

2. Electronics Component Manufacturing Policy 2025

•
Capital subsidy up to 20% for units outside the central ECMS framework, plus top-up over central subsidies.
•
Customized incentive packages for mega investments exceeding ₹2,000 crore.
•
Special additions: +2% incentive for lithium-ion battery cells with local sourcing; +1% for multilayer printed circuit boards (PCBs) using local laminates.
•
Land subsidy: 25% standard, rising to 50% in Bundelkhand and Purvanchal to direct electronic investments to backward regions.

3. UP Semiconductor Policy & Chip Ecosystem

•
State Capital Subsidy: Provides an additional 50% capital subsidy over and above the Government of India's India Semiconductor Mission (ISM) subsidy.
•
Land Subsidy: Offers 75% land rebate on the first 200 acres for qualified semiconductor wafer fabrication facilities.
•
Exemptions: 100% stamp duty exemption and 100% electricity duty exemption for 10 years.
•
Semiconductor Park: Being set up by YEIDA (Yamuna Expressway Authority) near Jewar Airport, hosting Foxconn-HCL display/OSAT joint venture and high-density chip packaging plants.
•
Prelims Nuance: Distinguish between Wafer Fabrication (front-end nanometer manufacturing), OSAT / ATMP (Outsourced Semiconductor Assembly and Test), Component Manufacturing (resistors, diodes), and PCB Assembly.
Key Examination Takeaways:
  • UP Defence Corridor spans 6 nodes (Agra, Aligarh, Chitrakoot, Jhansi, Kanpur, Lucknow) attracting ₹35,526 crore proposals across 2,040 ha.
  • Key anchor facilities include BrahMos missile complex at Lucknow and BDL propulsion facility at Jhansi.
  • UP Electronics Policy 2025 grants 20% capex subsidy and 50% land subsidy in Bundelkhand/Purvanchal.
  • UP Semiconductor Policy provides 50% additional capital subsidy over central ISM grants and 75% land subsidy on first 200 acres.
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Q1

Which of the following cities is NOT one of the six designated nodes of the Uttar Pradesh Defence Industrial Corridor (UP DIC)?

Q2

As of March 2026, what is the total value of investment proposals attracted by the Uttar Pradesh Defence Industrial Corridor?

Q3

At which node of the UP Defence Industrial Corridor is the BrahMos Aerospace cruise missile manufacturing unit established?

Q4

At which node of the UP Defence Corridor has Bharat Dynamics Limited (BDL) established its propulsion and rocket manufacturing facility?

Q5

Under the Uttar Pradesh Semiconductor Policy, what additional capital subsidy is provided by the state over and above the Central Government subsidy?

Q6

Under the UP Semiconductor Policy, what land subsidy rebate is offered on the first 200 acres for qualified semiconductor wafer fab units?

Q7

Under the UP Electronics Component Manufacturing Policy 2025, how much land subsidy is provided for units setting up in Bundelkhand and Purvanchal?

Q8

What is the threshold investment required to qualify for customized incentive packages under the UP Electronics Component Policy 2025?

Q9

Which agency is developing the Electronics City and Semiconductor Park in proximity to the Noida International Airport at Jewar?

Q10

How much total land had been procured for the UP Defence Industrial Corridor by March 2026?

Q11

What is the technical distinction between Semiconductor Wafer Fabrication and OSAT (Outsourced Semiconductor Assembly and Test)?

Q12

Which node of the UP Defence Corridor is specialized in unmanned aerial vehicles (UAVs) and testing ranges, leveraging academic synergy with IIT Kanpur?

Q13

Under the UP Defence Industrial Corridor policy, what is the maximum grant available for establishing a Research & Development Centre of Excellence (CoE)?

Q14

Why are Bundelkhand nodes (Jhansi and Chitrakoot) of the Defence Corridor strategically transformative for Uttar Pradesh?

Q15

How many direct jobs are estimated to be created by the signed MoUs in the UP Defence Industrial Corridor according to the 2026–27 Budget?