GUWAHATI: Assam Chief Minister Himanta Biswa Sarma on Friday acknowledged that land acquisition remains a key challenge for industrial development in the state. Addressing a press meet on Friday, February 28, he said that while investment interest in Assam is growing, converting Memorandums of Understanding (MoUs) into actual projects on the ground requires careful planning and discussions with stakeholders.
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“Segregation has been done department-wise. Now, each department will develop strategies on how they will provide land, where they will acquire land, and whom they need to coordinate with. If necessary, they will approach the government for land or alternative solutions,” Sarma said.
The chief minister added that in the next six months, government officials will hold direct discussions with companies that have shown interest in investing in Assam. “We will start individual discussions with companies about how to realise their investment on the ground—what incentives they need, how much land they require. This will help us prepare a roadmap,” he said.
Sarma explained that while many companies have expressed interest, the real challenge lies in identifying suitable locations. “For example, if a company wants to set up a cement factory, where should it be? Jorhat, Dibrugarh, Guwahati, or Kamrup? These are the kinds of discussions we need to have,” he said.
He added that the government will invite companies for talks over the next six months to finalise agreements. “Once we understand the industry's needs, we can proceed. For example, we have already signed agreements with Pepsi and Tata. First, we focus on the intent, then on the agreement,” he said, adding that investment figures remain tentative until all factors are finalised.
The chief minister pointed out that Assam cannot offer the same level of incentives as richer states like Gujarat, Rajasthan, or Madhya Pradesh. “Industries today will not move without incentives and proper infrastructure. They will seek proposals from multiple states and compare benefits before making a decision. Obviously, Assam will not be the first choice when competing with states that can offer better incentives,” he admitted.
Infrastructure remains another challenge. “Industries need roads, electricity, and drinking water. These are essential but difficult to provide immediately. We have to plan carefully,” he added.
The Assam government is looking at a strategic approach to categorising projects based on their incentive requirements. “Some industries, like hydrocarbon projects, have great potential here, so we need to decide what incentives are necessary and what already exists. We cannot accept every proposal immediately. Some high-value MoUs will be put on hold,” he said.
He also admitted that not all MoUs signed at investment summits translate into real projects. “This is why all MoUs signed in the conclave do not convert into investment opportunities. Some may take years to materialise, while others may not work out at all,” he said.
Advantage Assam 2018: What Happened to Those MoUs?
During the press conference, Sarma was asked how many MOUs from the Advantage Assam 2018 summit had actually resulted in investments. In response, he revealed that out of Rs 1.57 lakh crore worth of MoUs signed at the summit, projects worth Rs 75,000 crore have been materialised. “That gives us a strike rate of about 50%,” he stated.
He also acknowledged that the COVID-19 pandemic had impacted investment implementation soon after the 2018 summit. “The pandemic slowed down many projects. Some smaller MoUs were not realised, but we are making progress,” he said.