Assam Plans 6,000-Bigha Defence Park in Morigaon

Assam approves a 6,000-bigha Defence Park at Nelli in Morigaon to attract aerospace and defence manufacturers, strengthen domestic production and generate skilled employment.

The Assam Government has approved the development of a dedicated Defence Park across approximately 6,000 bighas of land at Nelli in Morigaon district, marking a major step towards expanding the state's presence in India's defence and aerospace manufacturing sector. The project aims to attract domestic and international companies, strengthen industrial infrastructure and create employment opportunities for skilled workers in the state.

The decision was taken at a State Cabinet meeting chaired by Chief Minister Himanta Biswa. Under the approved plan, around 6,000 bighas of land near Jagiroad will be allotted to the Industries Department for developing the facility. The land allocation covers approximately 1,984 acres and is intended to establish a dedicated industrial base for defence equipment manufacturing.

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The proposed park is expected to address the shortage of dedicated industrial land that has limited Assam's ability to attract large-scale investments in defence manufacturing. While several Indian states have developed industrial clusters for producing advanced defence equipment, Assam has remained relatively outside this expanding sector. The new facility is intended to create the infrastructure required to attract manufacturers and integrate the state into the country's defence production ecosystem.

Chief Minister Himanta Biswa Sarma has also highlighted the strategic importance of the project, stating that locating arms manufacturing closer to India's eastern frontiers could shorten supply lines and enable faster replenishment. The initiative is expected to support national defence preparedness while generating skilled employment opportunities for young people in Assam.

To attract investors, the state government plans to organise roadshows and promotional activities showcasing Assam's industrial capabilities and investment opportunities. These initiatives will target leading domestic and international companies interested in establishing manufacturing operations in the state. However, specific investors, project costs and production timelines for the proposed park have not yet been announced.

The project will be supported by the Assam Aerospace and Defence Manufacturing Policy, 2025, which was notified on February 23, 2025, for a five-year period. The policy aims to position Assam as a competitive destination for aerospace and defence manufacturing and covers aircraft production, advanced defence equipment, small arms and ammunition, unmanned aerial vehicles, drones, avionics, simulation systems and maintenance, repair and overhaul services.

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It also includes defence-related research and development, start-ups and micro, small and medium enterprises. To encourage investment, the policy provides incentives such as capital investment subsidies, reimbursement of the state's share of GST, assistance with transportation and power costs, land-related subsidies, research and development support and production-linked incentives, subject to applicable conditions.

The Defence Park, alongside the state's manufacturing policy, is expected to strengthen Assam's industrial ecosystem and support India's broader Atmanirbhar Bharat objective of increasing domestic defence production.