The proposed facility at Nellie aims to bring arms production closer to eastern frontiers and create skilled jobs for local youth.
The Assam government plans to develop a defence park in the Nellie area of Morigaon district to establish the state as a hub for defence manufacturing, according to reports by The Assam Tribune and ANI.
Chief Minister Himanta Biswa Sarma said on Monday that the planned facility will put arms manufacturing closer to the country's eastern frontiers, which will shorten supply lines and enable faster replenishment.
The state Cabinet, chaired by Sarma, approved the allotment of land for the project on November 3. The land spans approximately 6,000 bighas near Jagiroad.
Sarma noted that the park would create skilled jobs for the youth. He previously discussed the proposal for a defence corridor in the state with Defence Minister Rajnath Singh in 2024.
To support these ambitions, the state has notified the Assam Aerospace and Defence Manufacturing Policy 2025. The policy covers sectors including aircraft manufacturing, small arms, ammunition, drones, and Unmanned Aerial Vehicles (UAVs).
The policy offers incentives such as capital subsidies, reimbursement of the state's share of GST, transport and power cost assistance, and production-linked incentives. The government intends to organise roadshows to attract domestic and international investors.