Guwahati: Assam cabinet approved a plan on Monday to develop a town on 550 acres of former Hindustan Paper Corp. land in the Morigaon district, Assam, which the state government had acquired in March, said Jayanta Malla Baruah.

Speaking to the media after the cabinet meeting, he added that the proposal to give the tourist industry status had also received approval, opening the door for enterprises to take advantage of incentives offered under the state industrial strategy.

The area at Jagiroad, according to Baruah, would be developed as a Guwahati satellite township.

"The township will be established on 550 acres of land after conversations with the locals, but the preliminary decision for a satellite town was reached during today's meeting," he stated. The two closed paper mills owned by Hindustan Paper Corp (HPC) in Assam would be purchased by the state government for a total of Rs 375 crore, the Assam government stated on March 28.

For the buildings at Jagiroad in Morigaon and Panchgram in Hailakandi, the Assam Industrial Development Corporation (AIDC) won the offer.

The HPC facility in Panchgram ceased operations on October 20, 2015, while the Jagiroad mill did so on March 31, 2017. Since January and March of last year, respectively, no salaries have been provided to the personnel of the two units.

The Assam Cabinet approved a Rs 700 crore assistance package for the two paper mills on September 30 of last year. The government had said at the time that the majority of this sum would go toward paying staff salaries and benefits, while a smaller fraction would go toward other expenses including power costs.

Both paper mills' combined land size is around 1,550 acres.

Heritage hotels, bungalows, camping grounds, restaurants, amusement parks, ropeways, and adventure parks would be able to take advantage of increased advantages as a result of the cabinet giving the tourist sector industrial status, according to Baruah, the tourism minister. "The state of the sector will result in a paradigm change in the expansion of the tourism-based economy. The new status will permit incentives, subsidies, and reimbursements, among other things, leading to the creation of new job prospects, attracting significant corporate investments "added he.

According to him, the Assam Industrial Policy's focus sectors previously included river cruises and hotels and resorts with more than three stars.

Nine outdated and irrelevant legislation will also be repealed, according to the government.

According to Baruah, the choice was made to make doing business easier and to make living easier overall. Two additional laws, which will be submitted during the assembly session that starts on Tuesday, were also authorised by the cabinet.

According to the minister, the Assam Shops and Establishment (Amendment) Bill, 2022 intends to do away with licencing red tape, enhance working conditions, increase job prospects, and create a welcoming atmosphere for business.

He stated that the Assam Transport Workers' Social Security Scheme, 2022 will offer social security to motor transport workers against accidents, physical incapacity, and serious diseases, as well as educational assistance to their children.