Assam govt to unveil Rs 25,000 crore PLI scheme for industrial development

The government of Assam is actively seeking to attract electric vehicle manufacturers, automotive component suppliers, and developers of charging stations by offering substantial incentives amounting to Rs 25,000 crore as part of its broader state-driven Production Linked Incentive (PLI) scheme, Chief Minister Himanta Biswa Sarma announced during the Advantage Assam 2.0 Investment and Infrastructure Summit roadshow held in Mumbai today.

This initiative, which operates on a "first come, first serve" basis, in his address, Sarma highlighted that the PLI scheme aims to foster growth by bolstering manufacturing capabilities and generating employment opportunities within the state. This scheme will operate on a "first come, first serve" basis.

Speaking about an aggressive policy seeking investments from India and Maharashtra, he emphasised Assam’s commitment to providing an optimal environment for investment, asserting that Assam's industrial policy is designed to surpass the incentives offered by other states.

Sarma expressed a welcoming stance towards investments exceeding Rs 100 crore, promising tailored incentives and a readiness to compete directly with other states.

Industrial development in Assam has seen gradual growth, with the state focusing on key sectors like oil and gas, tea, agriculture, and handicrafts. Assam is rich in natural resources, especially oil, with the state being home to the oldest oil refinery in India, located in Digboi. The tea industry, known for producing world-class tea, also plays a significant role in the economy. Additionally, the government is working to promote infrastructure, connectivity, and industries like food processing, handicrafts, and bamboo products. However, challenges like inadequate infrastructure, insurgency, and skilled labor shortages continue to hinder faster industrial growth.

The Production-Linked Incentive (PLI) Scheme is a key initiative by the Government of India aimed at boosting domestic manufacturing, enhancing competitiveness, and attracting foreign investments. Launched in 2020, the scheme targets several sectors, including electronics, automobiles, pharmaceuticals, textiles, food processing, and renewable energy, among others. It offers financial incentives to companies based on their production volumes and incremental sales, encouraging them to scale up production and create jobs within India.

The PLI scheme is designed to reduce India’s reliance on imports, promote exports, and position India as a global manufacturing hub. By providing direct incentives linked to production, the scheme ensures that benefits are tied to performance, driving efficiency and innovation. It also encourages companies to invest in cutting-edge technology and improve supply chain capabilities.

For example, in the electronics sector, the PLI scheme aims to boost mobile phone manufacturing in India, leading to a significant reduction in imports and creating a strong export base. Similarly, the automotive sector benefits from incentives to manufacture electric vehicles (EVs) and green technologies.

Overall, the PLI scheme is seen as a strategic move to make Indian industries more self-reliant and competitive globally, contributing to economic growth, job creation, and technological advancement.