By launching the third edition of the inauguration ceremony (GBC 3.0), the government of Uttar Pradesh has called it one of the best investment opportunities for big names in the industry. Against this backdrop, Prime Minister Narendra Modi and Chief Minister Yogi Adityanath have announced some of the biggest plans in a bid to transform the state into a manufacturing hub. Exploring state transformation, Tarannum Manjul from Elets News Network (ENN) highlights the biggest projects announced at GBC 3.0 and their impact on the development of UP.
The GBC 3.0, held on June 3, 2022, was chaired by Prime Minister Modi and leading industrialists including Gautam Adani, Kumar Mangalam Birla, Niranjan Hiranandani, Naresh Trehan, Pirozshaw Godrej, Ahmed El Sheikh and d others attended the ceremony. The occasion saw presentation of projects worth over Rs 80,000 crore.
Investments to set up data centers through UP
At GBC 3.0, more than 25% of the investment was made for setting up data centers across the state. This includes mega investments from NIDP (Hiranandani Group), Adani Enterprises, Sify Technologies, NTT Netmagic and STT Global for the establishment of data centers, especially in Gautam Buddha Nagar district. The favorable policies of the state government facilitate investment for the projects and establish the emergence of UP as a global data center hub.
After the COVID pandemic, the data center industry has gained global prominence. The pandemic has opened the eyes of government and industry to realize the importance of data and digital infrastructure as an essential utility for any economy. Seeing the opportunity in the sector, the UP government has proactively launched various measures to attract investment for setting up data centers across the state. The government launched a phased data center policy in 2021 after rigorous stakeholder consultation with industry partners and industry experts. The policy aims to attract investment worth Rs 20,000 crore and develop a 250MW data center industry in the state. The policy offers attractive benefits including capital grant of up to Rs 10 crore, land grant of up to Rs 75 crore, stamp duty exemption, electricity duty exemption and interest subsidy . In addition to this, the dual-grid power supply of the first three data center parks and the waiver of transmission and transport fees are also provided.
The UP government was taking these initiatives even as the world grappled with the economic downturn largely due to the pandemic. A dedicated helpdesk has been set up to actively assist investors and facilitate their investment plans in Uttar Pradesh. The state government has also issued an ordinance providing for the compulsory allocation of land to mega-investors within 15 days of application in fast-track mode.
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As a result, a series of investments for the data center industry have made their way to Uttar Pradesh. Biggest in the row was the Hiranandani Group, which invested Rs 9,000 crore in Greater Noida to set up a world-class data center on over 20 acres in Uttar Pradesh. The Hiranandani Group’s proposal was received in August 2020. The state government has allocated land in fast track mode by October 2020 and provided all clearances/NoCs to the project by February 2021. The project is in construction and is expected to begin commercial operations by August this year. The group further plans to invest Rs 1,000 crore per year over the next five years in Uttar Pradesh in data centers.
Adani Group is also offering a data center with an investment of Rs 5,100 crores, followed by Sify Technologies which is investing Rs 2,700 crores. Furthermore, Japanese NTT Global has decided to invest Rs 1,700 crore while Singaporean STT Global will invest Rs 1,100 crore for setting up data centers in the state.
Scaling up BrahMos Aerospace missile production
BrahMos Aerospace will manufacture 80 to 100 new BrahMos missiles each year at its Lucknow plant from mid-2024. Thanks to the joint efforts of the Indian government and CM Yogi, Uttar Pradesh is on its way to becoming a center of defense production in the country.
According to Atul D Rane, CEO and Managing Director (MD) of BrahMos Aerospace, “Construction works are in full swing in Lucknow. Production of the current version of BrahMos can begin once the installation is in place. Assuming all goes well with setup and professional attestation of installation, the first BrahMos of the current release can be deployed by mid-2024. »
The BrahMos missile, which will be manufactured in the Lucknow node of the defense corridor, was the center of attraction of the exhibition. The Prime Minister paid close attention and could not take his eyes off the state-of-the-art BrahMos autonomous missile launcher. Other than that, there were 110 booths in the exhibit at the GBC 3.0 site in the state capital on June 3.
He further informed: “The feasibility study of the missile is coming to an end, once these preliminary studies are completed, a detailed design of the system will begin. If things go well, the joint venture of the Defense Research and Development Organization (DRDO) in India and NPOM in Russia plans to complete the detailed design within two years, followed by testing.
The deployment schedule for the future generation of missiles (BRAHMOS-NG) will be 5-7 years. This new manufacturing center will strengthen the consortium of the missile industry in the country and help create an ecosystem of futuristic weapons and technologies within the state and the country.
BrahMos Aerospace planned to deliver 80 to 100 missiles per year from the Lucknow facility. “The numbers are highly dependent on the orders we receive,” Rane said.
The (DRDO) is in the process of establishing a BrahMos manufacturing center in the state capital. Spread over an area of 200 acres, BrahMos Aerospace will manufacture the world’s finest supersonic cruise missile system referred to as BrahMos-NG which can be launched from a submarine, ship, aircraft or land.
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The manufacturing center will be a modern, state-of-the-art facility. The foundation stone for the centre, along with that of the Defense Technology and Test Center (DTTC), was laid by Defense Minister Rajnath Singh on December 26, 2021.
The BrahMos-NG is smaller, lighter and has sharper dimensions. It is designed to be deployed on more modern military platforms. The system will significantly enhance the modern combat capability and agility of the Indian Army over the next few years.
The project will provide direct employment to approximately 500 engineers and technicians. Apart from this, 5,000 people will get indirect employment. With the creation of auxiliary units related to the defense industry, about 10,000 people will get jobs.
Major projects to accelerate the development of UP
In a step aimed at making Uttar Pradesh an economic powerhouse across the globe, Adani Group Chairman Gautam Adani has pledged to invest Rs 64,000 crore on investments made at GBC. This investment will include the establishment of a solar power plant in Mirzapur, the largest munitions complex in South Asia in Kanpur, multi-modal logistics and industrial clusters along the Lucknow-Agra and Purvanchal highways.
Stating that CM Yogi lays the foundation for building UP’s trillion dollar economy, Adani said that CM Yogi’s simple, sober and disciplined lifestyle and his ability to make decisions and act on them perform effectively are exemplary. The spirit of cooperation and professionalism among the officers is also commendable. While addressing GBC 3.0 earlier, he said: “Our significant investments are a sign of confidence that today’s Uttar Pradesh will define tomorrow’s India.”
Elaborating on the Rs 6,000 crore investment, Adani said there was a proposal to set up a data center business. A total investment of Rs 70,000 crore by billionaire and industrialist Gautam Adani-led Adani Group in the state will also provide direct and indirect employment to around 30,000 people.
It should be noted that PM Modi attended the GBC 3.0. During the event, he laid the foundation stone for 1406 projects worth over Rs 80,000 crore.
A major industrial gases company based in France, Air Liquide, has announced a huge investment of Rs 350 crore in GBC 3.0 in Uttar Pradesh. While thanking CM Yogi Adityanath for inviting him to this great event, the company’s Vice President, Matthieu Eyries, said: “It is an honor and a great pleasure to represent Air Liquide at this event.
“This will be the fifth oxygen production unit built and operated by Air Liquide in India. This illustrates our renewed commitment to Uttar Pradesh…These new plants located in Mathura will reproduce 350 tonnes of oxygen, nitrogen and argon and improve our ability to serve our customers in North India, boosting the state economy and creating job opportunities,” he added.
Further explaining their plans, Eyries said the Air Liquide plant will help the state meet medical oxygen demand. “In particular, our products would be used for manufacturing applications such as welding, cutting, environmental conservation and wastewater treatment. We contribute to the decarbonization of sectors such as the cement industry”, he declared, adding: “The Air Liquide group is committed to sustainable development objectives, with a reduction of one third of its emissions of CO2 emissions by 2035 and achieving carbon neutrality by 2035. 2050. In this regard, our commitment is to start operating the Mathura plant with 40% green energy.
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Calling it a privilege to be part of the UP community, Matthieu Eyries said, “We truly look forward to a fruitful partnership with citizens, businesses and authorities for many years to come. I would like to thank the authorities while working rigorously to make this region a preferred destination for foreign investors. This was only possible thanks to the constant collaboration between our respective teams and within the framework of the policy to promote oxygen production launched by the UP government.
“We were able to accelerate the funding of this project with strong financial support. I specifically want to mention and thank the professionalism and constant support of Department of Industries, Invest UP, Nivesh Mitra and Mathura administration,” he added.
Furthermore, he also pledged a strong commitment to incremental investments in India in the coming years. “We want to work for the Indian people. We will proudly champion India as an attractive business destination for various global businesses,” he concluded.