Assam to Establish State-of-the-Art Defence Park in Morigaon District

Assam Government Announces New Defence Park

In a landmark initiative to position Assam as an emerging hub for defence manufacturing, 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 the meeting of the state Cabinet chaired by Chief Minister Himanta Biswa Sarma at Lok Sewa Bhawan on November 3. Accordingly, the Industries Department will be allotted around 6,000 bighas of land in the Nelli area, located near Jagiroad, for the development of this ambitious project.

Assam has witnessed a significant transformation in its industrial landscape in recent years. While several parts of the country have emerged as major destinations for defence manufacturing, with facilities producing advanced systems such as BrahMos missiles and sophisticated helicopters, Assam had long remained outside this rapidly expanding sector. Although the state has recently taken transformative strides in strategic sectors such as semiconductors and other high-value industries, the absence of a dedicated and adequate land bank had 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’. 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 initiative is expected to give a significant impetus to the state’s industrial and economic landscape.

Strategic Policy Framework for Defence Manufacturing

The state government has already notified the Assam Aerospace and Defence Manufacturing Policy, 2025, on February 23, 2025. Effective for a period of five years from the date of its publication in the Official Gazette, 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 (UAVs) and drones, avionics and simulation systems, Maintenance, Repair and Overhaul (MRO) services, defence-related research and development, as well as defence start-ups and Micro, Small and Medium Enterprises (MSMEs).

Incentives and Future Outlook

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 at Nelli, 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. It will also open up new avenues for the youth of Assam, positioning the state as an emerging destination in India’s defence and aerospace manufacturing ecosystem.

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