GUWAHATI: The Assam government has taken a “historic” initiative to develop a state-of-the-art Defence Park over approximately 6,000 bighas of land at Nelli in Morigaon district.
The decision was approved at a meeting of the state Cabinet on November 3. The Industries Department will be allotted land for the development of the ambitious project.
Although Assam has taken various transformative strides in strategic sectors, such as semiconductors and other high-value industries, in recent years, the absence of a dedicated and adequate land bank has constrained its ability to attract large-scale investments in defence manufacturing.
“The proposed Defence Park is expected to address this longstanding gap and open up new avenues for industrial growth in Assam, in alignment with the national vision of Atmanirbhar Bharat,” a government statement issued on Monday said.
To attract leading domestic and international investors, the state government will soon organise roadshows and undertake a series of promotional initiatives to showcase Assam’s growing industrial potential and investment opportunities.
The government notified the Assam Aerospace and Defence Manufacturing Policy on February 23, 2025. The policy seeks to establish Assam as a globally competitive destination for aerospace and defence manufacturing.
It covers a wide range of strategic sectors, including aircraft manufacturing, advanced defence equipment, small arms and ammunition, unmanned aerial vehicles and drones, avionics and simulation systems, maintenance, repair and overhaul services, defence-related research and development, as well as defence start-ups and micro, small and medium enterprises.
To encourage investments and facilitate the establishment of industries in the state, the policy offers a range of attractive incentives and support measures.
These include capital investment subsidies, reimbursement of the state’s share of GST, assistance towards transportation and power costs, subsidies for land allotment, financial support for research and development, and production-linked incentives.
These benefits will be extended subject to the prescribed terms and conditions of the policy, ensuring that investments in the state are sustainable, productive and mutually beneficial.
“The Assam Aerospace and Defence Manufacturing Policy, 2025, together with the proposed Defence Park, will provide a strong foundation for attracting leading aerospace and defence companies to the state. Beyond strengthening Assam's industrial ecosystem, the initiative is expected to generate substantial employment opportunities, help address unemployment and create a robust foundation for long-term economic growth,” the statement further stated.