After the ₹27,000 Crore semi-conductor project in Morigaon, the Assam government is looking for another huge investment for setting up a Defence Industrial Corridor (DIC) from Guwahati to Tezpur (covering 51 sub-Area, Narengi to 4 Corps headquarters, Tezpur) to attract foreign investors for setting up defence-based industries, especially arms and military equipment.

The TATA Group will set up a semiconductor manufacturing plant in Jagiroad with an investment of ₹ 27,000 crore. The facility will put the state on the global map.

During an interaction with the media, Assam chief minister Himanta Biswa Sarma said that he wants to have defence manufacturing units in the state.

In a post on X Sarma said, “Assam-made semiconductor chips will hit the global market within the next year. I also want to bring defence manufacturing units, mobile phone assembling units, and other technology-based industries in our state.”

The talk for setting up a defence industrial corridor (DIC) in Assam was initiated during the Aero India show at the Yelahanka Air Force Station in Bengaluru in February this year. However, the talk collapsed initially because of the lack of interest of the officials of the Assam government.

Rajya Sabha MP Pabitra Margherita also tried to raise the issue in the Rajya Sabha seeking a reply from Defence minister Rajnath Singh. However, his question did not come up for discussion during the last budget session.

Of late, Assam chief minister Himanta Biswa Sarma expressed his interest in setting up a Defence Industrial Corridor (DIC) in the state. A meeting of the stakeholders is also likely to be held in the capital city in November, this year, sources here said.

The state government is organizing the Global Investor Summit- Advantage Assam 2.0 in November this year, where hundreds of defence production companies from foreign countries are expected to participate.

India has established two Defence Industrial Corridors – one in Uttar Pradesh and another in Tamil Nadu. The Uttar Pradesh Corridor encompasses nodes in Agra, Aligarh, Chitrakoot, Jhansi, Kanpur, and Lucknow. Tamil Nadu Corridor encompasses five nodes- Chennai, Coimbatore, Hosur, Salem and Tiruchirappalli.

The Defence Industrial Corridor is a dedicated region or area strategically planned to promote indigenous production of defence and aerospace-related items. Since India is one of the key Defence markets driven by increasing spending, the capital expenditure for Defence procurement is expected to be around USD200-250 billion over the next 10 years, and ‘Make in India’ has been the government’s cornerstone to promote indigenous Defence production in the country.

Given the increasing focus on self-reliance, the Ministry of Defence (MoD), has set a target of doubling the Defence production to USD 25 billion by 2025 from USD 12.5 billion in 2019-20. To achieve the targeted annual growth rate of around 15 per cent, the MoD is focusing on boosting Defence exports through these corridors.

Given increasing military activities in Assam and the Northeast, the establishment of Defence Industrial Corridors in Assam marks a significant milestone. There are two corps headquarters of the Indian Army in Tezpur and Dimapur apart from Eastern Air Command headquarters in Shilling.

It will transform armed service requirements to drive the economic growth of the state apart from promoting ancillary (outsources) and development of MSMEs for Aerospace and Defence manufacturing in each of the nodes of the state.

In addition to this, the project will encourage skill development and create jobs within the state by meeting skill/education standards espoused by the A&D sector globally.

A senior official of the state government said the state government ir prioritizing to formulate a policy for Defence Industrial Corridor. This can be done only after a meeting with all stakeholders.

Once the policy is finalized, the government will finalise the nodes where the corridor will be set up, he said.

For the Defence Industrial Corridor, the state government has to submit a proposal to the Ministry of Defence, which is the supreme authority to give a green signal on it.

Once the project is approved, there will be a tripartite agreement between the Centre, state government and a foreign company for defence production. This agreement will focus on the lease of land to the foreign company for setting up defence units.

(With Agency Inputs)