The Assam government is getting ready to roll out a red carpet for the defence industry. Speaking exclusively to CNBC-TV18, Chief Minister Himanta Biswa Sarma said that the state government will launch an incentive-based defence manufacturing policy within a few months after the election.

Sarma emphasised that after petroleum refining and semiconductors, the defence industry is the next priority for Assam.

Tata Electronics recently announced an investment of ₹27,000 crore to set up a semiconductor assembly and testing plant in Jagiroad, Assam. The Chief Minister said that the state government had been holding discussions with Tata Group for close to a year.

“All regulatory clearances are being given. I have heard that Tatas have already started producing chips in Karnataka on a pilot basis and supplying to customers. Tata Electronics has also taken possession of the land. We are fully aligned,” he added.

Sarma indicated that apart from fiscal incentives, land use concessions have also been given to the Tata Group.

The Chief Minister said that Assam’s own semiconductor policy is better than that of Gujarat, Tamil Nadu or any other state in the country. “Any company that is getting incentives under the Centre’s semiconductor policy will be given 50% of [the government’s] support as a fiscal incentive,” he said.

Speaking about the defence manufacturing policy, Sarma said that Assam is currently studying the defence industrial policies of Gujarat, UP and Karnataka and will soon try to launch a better version. “We will be rooting strongly for the defence sector and I am talking to all major defence companies,” he said.

Sarma said that apart from conventional industries, major investments are taking place in technologies of the future and he aims to make Assam a hub for manufacturing cutting-edge technology. “We are also considering ways to make Assam a hub for mobile phone assembly,” he added.

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