The state government approved the project at a cabinet meeting to boost local manufacturing and create jobs.
The Assam government has approved the development of a state-of-the-art defence park covering approximately 6,000 bighas of land at Nelli in Morigaon district. The decision was made during a state cabinet meeting chaired by Chief Minister Himanta Biswa Sarma on November 3, according to reports from The Economic Times and BusinessLine.
The Industries Department will be allotted the land near Jagiroad for the project. Chief Minister Sarma stated on X that the facility will place arms production nearer to the country's eastern borders, which will help shorten supply lines and allow for quicker replenishment of equipment.
The initiative aims to address a lack of dedicated land banks that previously limited large-scale defence investments in the state. The project aligns with the national Atmanirbhar Bharat vision and is expected to create skilled employment for local youth.
To support this sector, the government notified the Assam Aerospace and Defence Manufacturing Policy, 2025, on February 23. This five-year policy covers areas such as aircraft manufacturing, drones, ammunition, avionics, and maintenance, repair and overhaul services.
The policy provides various incentives to attract domestic and international investors, including capital investment subsidies, assistance for power and transport costs, and reimbursement of the state's share of GST. The state government plans to organise roadshows and promotional activities to showcase investment opportunities in the region.
