The Assam government unveils a Rs 25,000-crore scheme to boost electronics manufacturing in the state with a major share earmarked for incentivizing component makers, chief minister Himanta Biswa Sarma says.

Himanta further states that Assam, chosen by Tata Electronics to establish a Rs 27,000 crore chip assembly and testing facility, will provide component manufacturers with a 60 percent incentive in addition to the Union government grant. The incentive will be improved based on the investment scenario.

According to Sarma, the Tata plant in Jagiroad, Assam, is set to commence operations by March-April next year, with the state government also developing a Ratan Tata Electronics City.

The Tata project has enlightened us, and we recognized that we possess an edge in electronics and other related fields. Therefore, we have swiftly released the policy on manufacturing electronic components in response to the central government initiative. At this point, we are optimistic that we can accomplish something greater," Himanta says.

The government initiative provides incentives tied to production along with a capital subsidy.

“During the next year or two, I believe we'll successfully negotiate with an increasing number of industries (to join us),” Himanta mentions.

Pointing out that Assam provides greater fiscal advantages compared to other states, he mentioned that this will enable industries to access various schemes. Advantages comprise the Union government's initiative, Assam's specific incentives, alongside the Centre's Unnati benefits plan for the Northeast, which encompasses interest subvention and power and tariff incentives.

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This March, the Union cabinet sanctioned a Rs 23,000 crore initiative to enhance the nation's electronics manufacturing supply chain. The Electronics Component Manufacturing (ECM) Scheme, lasting six years, is anticipated to attract investments totaling Rs 60,000 crore. The plan aims to boost local value creation and connect domestic firms with international value chains.