Assam Industrial Development Corporation – The Core of Assam’s Industrialization

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A BNE Exclusive with Shri Adil Khan, Managing Director, AIDC

Industrialization has been marked as the key indicator of the upliftment of an economy. The overall growth of a state vis-à-vis a country depends on the growth of the industrial sectors of the state. This textbook knowledge is known by all, but do we know, who overlooks the growth of these industries? From the provision of lands, creation of infrastructure, bringing in investments, providing subsidies, to building a conducive environment for industrial growth – these indispensable sectors are taken care of by one particular entity. And in Assam, we know it as Assam Industrial Development Corporation Limited (AIDC). Business-Northeast brings forward for our dear readers, an exclusive interview with the dynamic IAS Officer, Shri Adil Khan, the Managing Director of AIDC.

Shri Adil Khan, MD, AIDC

Q 1. How does AIDC Function? How is it aiding towards the economy of Assam?                                                                                                                           

Assam is the largest economy in the north-eastern region, owing to its proximity to the rest of the country and quality infrastructure. Assam has over 66,000 industries constituting 88% of micro industries. Industries in Assam contribute 39% to the State’s GSDP and provide direct employment to approximately four lakh people and indirect employment to around 20 lakh people.

AIDC has been a noteworthy partner in the Industrial Growth of Assam for more than 50 years and has contributed immensely towards the economy of Assam through industrialization and employment generation. The premier Industrial Development Corporation, AIDC, is committed in accelerating the socio-economic development in the state by facilitating industrial development. Having developed millions of Sqft of industrial assets across the State of Assam, AIDC has been striving towards creating high standard industrial infrastructure in Assam for the growth and development of industries in the State.

The Corporation on behalf of the Government of Assam carried out all the initial project implementation works till the formation of the company for some of the major projects in the state like Numaligarh Refinery Limited, BCPL, MDTC of ATPO, Assam Hydrocarbon and Energy Company Limited, etc.

Moreover, AIDC has recently enhanced the leased period for land allotment from 60 years to 90 years. In incoherence to that, AIDC has made the land allotment process simpler and has introduced reasonable rates. This has been quite appreciated by existing as well as potential investors.

AIDC Office in Guwahati

Q.2 What are the schemes that AIDC is currently promoting and further working on?

Apart from the Government of Assam, AIDC works with several ministries of the Government of India for the Development of Industrial Infrastructure in the State. Infrastructures like Export Promotion Industrial Park, Mega Food Park in Nalbari District, Bamboo Technology Park, Plastic Park in Tinsukia, and Border Trade Centre at Golakganj and Mankachar have been developed under various schemes of different Ministries of Government of India and assistance from the Government of Assam.

Q.3. What is the current status of the large and mega industries of Assam?

It gives us immense pride to announce that AIDC has facilitated the growth of over 110 large and mega private sector investment projects in Assam since 2007 thus generating INR 9983 Cr of investment and over 7500 direct employment besides supporting hundreds of MSMEs across the State.

Patanjali Ayurveda’s Manufacturing unit in Industrial Growth Centre, Balipara, Sonitpur District, Assam

Q.4. How did COVID hit AIDC? What was the impact of the pandemic on the industries?

Most of the industries were closed during the lockdown period which severely affected the state’s economy. The government of Assam had issued revised guidelines dated 5th May 2020 allowing all industries in the state with their supply chain to restart without the need for special permission.

On account of lockdown, the MSME was the worst affected sector as a large chunk of labour force is directly or indirectly dependent on this sector. It had social implications with loss of employment and livelihood during the lockdown period. The Government’s top priority was the revival of the MSME sector to generate employment to resolve the income disparity in the society.

Prime Minister’s Rs. 20 lakh crores ‘Atmanibhar Bharat Abhiyan’ stimulus package put the rails of development which was disrupted by the COVID-19. Collateral free automatic loan for MSMEs has hugely benefitted the MSMEs of Assam. Payment of EPF contribution by the Government of India has also been a great relief to MSMEs of Assam.

COVID indeed had an adverse effect in the completion of ongoing projects of AIDC and also in realisation of rent and other revenue. However, we stood together with the industries during the one in a century ‘Black Swan’ event and provided all possible support to the industries and entrepreneurs to overcome the pandemic.

Q.5 What kind of problems does AIDC has been facing in terms of work? What steps have been taken or are in the brew to mitigate these problems?

AIDC has experienced a golden period for the Industrial Infrastructure sector in Assam. AIDC has established a Perishable Air Cargo Complex at Borjhar with integrated Cold Storage and we have been able to export local horticulture produce to UAE, Gulf countries, Singapore, etc. 

AIDC is also developing the Assam Agar International Trade Centre at Golaghat. On completion will promote the business potential of the farmers as well as the entrepreneurs associated with agarwood plantation and trade in Assam.

India’s 1st Multi-Modal Logistic Park (MMLP) under Bharatmala Programme is being set up by the Government of India at Jogighopa, Bongaigaon at a project cost of nearly Rs. 694 Crores. The MMLP is envisaged to improve logistics efficiency and facilitate the Domestic and Export-Import Trade in the region. The park shall be well connected to Road/Rail/Waterway Network thereby ensuring seamless movement. The Logistic Park will offer a single point clearance platform for various government mandatory approvals like Custom, Excise, etc. helping in smooth transportation of goods and products. The MMLP shall benefit all industries in Assam including the industries under the AIDC ecosystem.

Border Trade Centre at Mankachar and Golakganj were established to promote trade with neighbouring country – Bangladesh.

We understand the need for market linkages and the role of aggregators in promoting our art and produce. Department of Industries and Commerce, Government of Assam have signed an MoU with Flipkart to provide the local artisans, Assamese jewellery makers, small tea growers, organic cultivators a platform for selling their products online across the country and beyond. AIDC shall undertake all necessary endeavor to convert this vision of DoIC of establishing market linkages thereby ensuring benefits to industries under AIDC industrial ecosystem.

Q.6. Could you provide us with some details on the ‘Mega Food Park’ at Tihu and the ‘Bamboo Technology Park’ at Chaygaon? What is their current status? How does AIDC plan to utilize these entities for the development of Assam?

Mega Food Park

The project has been implemented under the Mega Food Park Scheme of Ministry of Food Processing Industries, Government of India through an SPV called North East Mega Food Park Ltd. with the objective of providing adequate infrastructure for the food processing industry along with the value chain from the farm to the market. The 50acres NE Mega Food Park is located in Nathkuchi, Tihu in Nalbari district on NH-31 and 90 km from Guwahati. It includes facilities like Industrial sheds, industrial plots, cold storage of 3000MT, Common Effluent Treatment Plant, Quality Control Labs, etc. Common administrative building for office and other uses.

Bamboo Technology Park

The project is approved by the Department of Industrial Policy & Promotion(DIPP) under the Industrial Infrastructure Up-gradation Scheme(IIUS) of the Government of India. Spread across 8,002.2sq.m, the Bamboo Technology Park is located within the Industrial Growth Centre at Chaygaon, Kamrup district. The park offers several common infrastructures for Bamboo sector entrepreneurs including a Bamboo treatment plant, machinery for manufacturing bamboo sticks, bamboo wood, and bamboo plastic composite products.

Ariel view of Eveready’s manufacturing plan in Industrial Growth Centre, Matia, Goalpara District

Q.7.What more that is brewing under AIDC can be expected by the industries of Assam?

Assam Industrial Development Corporation Ltd realizes that high-end and quality infrastructure facilities are essential for industrial development. As a result of the availability of quality infrastructure, industries get established with less capital investment and can function without impediments. These infrastructure facilities assist in the growth of business and industry along with promoting fair competition. In addition to social development and the generation of new employment opportunities, it helps in attracting indigenous and foreign investment.

For the benefit of entrepreneurs, AIDC is planning to develop industrial areas in every district of Assam by purchasing land or by acquiring it from the Government. Hopefully, in the coming days, AIDC will contribute much more towards industrialisation of Assam.

Q8. What is AIDC’s contribution in developing the Ethanol for Bio-fuel sector in the State?

It has been Hon’ble Prime Minister Shri Narendra Modi’s vision to strengthen the country’s energy security, enable local enterprises and farmers to participate in the energy economy. To translate this novel vision into action, the Government of India introduced the National Policy on Biofuels 2018 that considers up to 20% blending locally produced ethanol with petrol by 2023.

While, Department of Industries and Commerce, Government of Assam has been striving to attract private sector investments both within the state as well as nationally and internationally across various sectors, Ethanol for blended fuel has become the sector of prominence for an agrarian and petroleum-rich state like Assam.

With the new state ethanol policy declared in August 2021, we have attracted 15 private sector investments in the State amounting to over 2350 KLD of Ethanol output daily.

Out of the 15 projects, 7 of them have already been shortlisted as vendors/suppliers by a consortium of Oil Manufacturing Companies with a cumulative capacity of 610 KLD. As a result of the proactive and promotive initiatives taken by our team, Oil Manufacturing Companies have received an investment proposals with an annual manufacturing capacity of nearly 38 crore litres of ethanol as against the current annual requirement of 15.2 crore litres of ethanol in Assam.

AIDC has promptly provided land to 6 out of 7 units across various parts of Assam. The State Single Window agency under the Department of Industries and Commerce has already facilitated all necessary approvals from the State.

11 Replies to “Assam Industrial Development Corporation – The Core of Assam’s Industrialization”

  1. The article provided here by Business Northeast is indeed an enlightening one. It was informative to know about AIDC and how it aids in the industrial growth of Assam.

  2. Article is too good and yes very helpful to understand the industrial market.
    And yes there were many good points which help to understand AIDC.

    Thanks you

  3. Great efforts by AIDC towards industrial and infrastructure development of Assam. Looking forward to see new vibrant technology parks generating big career opportunities to the people of Assam

  4. This article is very informative and insightful, wasn’t aware about AIDC’s functioning and it’s contribution towards Assam’s economy untill I read this article. Thanks to Business Northeast for posting such enlightening article.

  5. Really informative and to the point approach. The article gives a comprehensive review to the scenario in a understandable way.

  6. The interview is very informative and as a common man we have come to know the contribution of AIDC in facilitating industrialisation in the state of Assam. We are eagerly waiting to see much more new initiatives of AIDC in near future. With our all best wishes.

  7. A very informative article/interview to know about AIDC in details and its future schemes. I would like to tell one thing that Make in Assam should be our motto in the line of Make in India and for that Assam has to work differently and do different things to move forward in this competitive world. AIDC will have to work to increase investors attractiveness, ease of doing business and make it faster, easier and competitive. Our main problem is power. Today every step in an industry is solely dependent on electricity. Demand of power is increasing day by day and Assam Power Distribution Company Ltd is no where near it because Assam is mainly dependent on hydro generations. It is high time to look for alternative sources like solar energy in large scale for industries. Thanks

  8. This article embarks a lot of salient points that benefits the growth of our northeast industrial business all throughout.
    Hope to see more upliftment in near future.
    And kudos to you for such a remarkable knowledgeable article. ❤

  9. It was a very well put together engaging read about Assam Industrial Development Corporation. The various initiative by AIDC is enormous and prospective. Such inventiveness will surely play a great role in the growth of Assam as well as the whole Nation.

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