Department of Industrial Policy and Promotion(DIPP) under Ministry of Commerce and Industry had received two project proposals to establish Defence Parks under Modified Industrial Infrastructure Upgradation Scheme (MIIUS). One proposal was from Government of Kerala to establish Defence Park at Pallakad (Kerala). The project at KINFRA Defence Park, Pallakad (Kerala) was sanctioned on 28.3.2016 with project cost of ₹ 131.35 crore involving central grant of ₹ 50 crore.  Detail of this project and its present status are as under:

Name & Location of the project	Date Approval	(Rs. in crore)			Remarks
		Project Cost	Central Grant	Central grant released
KINFRA Defence Park, Palakkad, Kerala	28.03.2016	130.94	50	35	Under implementation (Physical progress- 58%)

Another project proposal was received from Gujarat Industrial Development Corporation   for establishment of Defence Park at Sanand. The proposal was not considered as MIIUS permits sanction of maximum two projects per State and when this proposal was received, two proposals had already been given ‘in-principle’ approval in Gujarat. MIIUS scheme was valid till 31.03.2017 and no new projects are being taken up under this scheme.

DIPP does not have any specific policy or scheme for assistance to promote or establish Defence Parks in States and there is no proposal at present to implement any specific scheme for providing assistance to promote or establish Defence Parks. However, consequent to the announcement in the Budget Speech (2018-19) by Finance Minister for setting up of two Defence Industrial Production Corridors in the country, the Government has decided to establish two such corridors, one in Tamil Nadu and the other in Uttar Pradesh.

This information was given by the Minister of State of Commerce and Industry, C. R. Chaudhary, in a written reply in the Lok Sabha today.

Modified Industrial Infrastructure Upgradation Scheme limits affected Defence Park sanctions, shifting focus to Defence Industrial Production Corridors. The Department of Industrial Policy and Promotion approved a KINFRA Defence Park project at Palakkad under the Modified Industrial Infrastructure Upgradation Scheme with central grant support and is implementing it; another Gujarat proposal was declined due to per-State project limits under MIIUS, which no longer accepts new projects, and DIPP has no separate policy or active proposal to fund Defence Parks though the Government plans Defence Industrial Production Corridors.