The Maharashtra government is planning to set up industrial facilities exclusively for defence equipment production in the state.

The government has identified land for setting up two such facilities, one at Jejuri near Pune and another in Ahmednagar district, a source in the state Industries department told PTI.

Exclusive complexes

Some of the companies interested in entering the area have demanded land for testing explosives and other defence-related equipment, in places like hilly terrain and sites away from human habitat. That is why the government intends to set up complexes exclusively for defence equipment production, he said.

Some leading Maharashtra-based private companies have shown interest in venturing into defence equipment production. The state government had last week said it would set up a fund of ₹1,000 crore for helping manufacturers in the defence sector.

The government had also said it expects an investment of $5 billion in this area in the state. The state’s draft defence and aerospace policy is expected to be approved soon by the Centre, the source said.

The Maharashtra government has studied the policies of the Centre and states like Telangana before finalising its own. The state government wants its policy to be in sync with that of the Centre, he said.