The Assam government has been working on establishing a defence corridor in the state for a long time, but due to a lack of proper planning and strategy, the project remains a distant dream. The state has not even formulated a policy for the corridor yet.
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In May this year, GPlus reported that the state government was serious about establishing a defence corridor in Assam, and a proposal was being prepared for the purpose. However, the current status of the project suggests that the defence corridor in Assam remains an uncertain and distant goal. The policy is still not ready, and the progress of the project is significantly delayed.
A source in the Defence Ministry told GPlus that to initiate a defence corridor, any state government must have a strategic plan to bring the project to fruition. The source explained, “There are many challenges in starting the project, with the main one being coordination with the Ministry of Defence (MoD).” The source added that before producing any defence-related products, the buyer (the MoD) must agree to purchase them.
The source further explained that for the defence industrial corridor, the state must submit a proposal to the Ministry of Defence. If the MoD approves the proposal, it will sign a memorandum of understanding with the state, which will ensure that "100% of the defence-related products produced will be procured by the ministry."
The source emphasised that before "pitching" for the corridor, the state must first form a "core team" for the defence corridor project. The team, according to the source, should not consist only of IAS or ACS bureaucrats; it should also involve some army officials on deputation who have experience working with defence corridors. “Even retired army officials can be hired,” said the source, adding that Uttar Pradesh and Karnataka, which already have defence corridors, have involved army officials in their teams.
The source suggested that the core team from Assam should first visit the states that have defence corridors, learn their strategies for coordinating with the MoD, and also visit countries that produce defence equipment. After visiting these countries, the core team should draft a defence policy and then pitch the idea to the Centre.
“There needs to be a tripartite memorandum of understanding (MoU) between the state government, the MoD, and the defence equipment-producing country, ensuring that the corridor will produce equipment that the MoD will purchase,” said the source.
The source also mentioned that there have been discussions at the top ministerial and bureaucratic levels in Assam over the past two years regarding the defence corridor, but nothing has materialised so far.
Additionally, the Assam government had planned to organise an investment summit in November this year to invite defence equipment producers, but the event has now been postponed until February. Furthermore, the defence corridor policy, which was expected to be prepared by November, has yet to be finalised.
A senior official from Assam's Industry and Commerce Department, speaking to GPlus on condition of anonymity, said, “The defence corridor in Assam will take time,” adding that the policy would be finalised only after the investment summit in February.
Another source in Dispur mentioned that with the semiconductor project in Nagaon nearing realisation, the government seems less "serious" about the defence corridor, as it would require large-scale land acquisition, which presents challenges.
The source reiterated that for the defense industrial corridor, the state must submit a proposal to the Ministry of Defence. If the MoD approves the proposal, it will sign an MoU with the state to ensure that "100% of the defence-related products produced will be procured by the ministry." Afterward, the state, the MoD, and the expert country will form a tripartite committee to begin the project. The only thing the state must provide is land, according to the source.
Six nodes have been identified for the Uttar Pradesh Defense Industrial Corridor: Aligarh, Agra, Chitrakoot, Jhansi, Kanpur, and Lucknow. For the Tamil Nadu Defense Industrial Corridor, five nodes have been identified: Chennai, Coimbatore, Hosur, Salem, and Tiruchirappalli. These nodes were selected based on their high potential to create an end-to-end ecosystem for the aerospace and defence sector, including design, engineering, and manufacturing.
When asked about the identification of nodes in Assam, the Industry and Commerce Department official said, “We have land in every district, but we have yet to finalise the exact locations where the defence manufacturing units will be set up.” He added that once the policy is prepared, the nodes will be identified.
It is important to note that the state’s Industry and Commerce Department has been working on the project for the last two years, but no nodes have been selected, and the policy is still far from being developed. There is not even a single core committee in place for the project, and no defence officials have been hired yet.
Although the state chief secretary and the chief minister expressed their interest in the defence corridor through social media posts in May this year, as of November, the investment summit has been postponed, and the defence corridor policy remains a distant reality. The defence corridor in Assam remains uncertain.
The establishment of defence industrial corridors aims to boost indigenous production of defence and aerospace-related items, reducing reliance on imports and promoting exports. This could create numerous employment opportunities and foster the growth of private domestic manufacturers, Micro, Small and Medium Enterprises (MSMEs), and start-ups. The Uttar Pradesh government introduced the 'Uttar Pradesh Defense and Aerospace Unit and Employment Promotion Policy' in 2018, while the Tamil Nadu government implemented the 'Tamil Nadu Aerospace and Defense Industrial Policy' in 2019, offering various incentives to companies, such as stamp duty exemptions, land cost incentives, and electricity tax exemptions. Additionally, basic infrastructure support, including internal roads, drainage systems, and utilities, is provided by the state governments.
The Assam government is also considering a defence corridor but lacks the necessary seriousness to move the project forward.