Guwahati: Amid heightened expectations, especially among the business community of barrage of reforms to spur up the state economy, economic activity in Assam in calendar year 2022 was centered on heightened government spending on infrastructure and social welfare schemes as industrial activity kept up its own pace.

Apart from the new tourism policy, which was announced in the latter half of the year, the entry of multinational brands like Starbucks, McDonald to the auction of two paper mills, there were no ripple activity in the business sector of Assam.

In fact, under the dynamic leadership of the Chief Minister Himanta Biswa Sarma, who is known to be a go getter in politics, it was highly expected that he will press on the accelerator to spur up the tepid economy activity in the state.

As expected, Mr Sarma at the beginning of the year announced that investments worth Rs 92,000 Crore are in pipeline or in different stages of implementation in the state.

In a recent initiative- a fortnight for development (bikakhor babei ek prokhekh) by Assam Chief Minister Himanta Biswa Sarma has resulted in the introduction of several development projects with a cash outlay of Rs. 15,000 crores across 11 districts of Assam.

On the other hand the state borrowings bulged, as government spending on social welfare activities Direct Benefit Transfer schemes like Orundoi increased. A record cash outlay of Rs 4,142 core was earmarked for the scheme.

On the revenue front, government tried to mop up as much revenue as possible by bringing in new sectors under taxation and initiated measures to stop revenue leakages.

According to CEIC, Assam’s total Revenue Receipts data was reported at 996,630.000 INR mn in 2023. This records an increase from the previous number of 960,420.000 INR mn for 2022.

On the revenue side, there is a silver lining as the collection has increased and the government deserves praise for putting an effort in stopping the revenue leakages in excise and other related sectors. Assam excise sector revenue is likely to cross record mark of Rs 3,500 crore.

On the corporate sector, Assam government signed MOU with Tata Technologies Limited in May to upgrade technical institutes covering all aspects of curriculum in consonance with the latest industry needs.

Under this project, 34 polytechnic colleges and 43 ITIs of the state will be transformed into centre of excellence to train and empower youth in tune with the industry requirements.

In the tea sector, which is one of the mainstay of economy the biggest news came in the last month of the year.

Decks were cleared for the leasing out of 12 Assam Tea Corporation Limited (ATCL) gardens which have accrued liabilities of over Rs 450 crore.

The much-awaited breakthrough came at a meeting convened by chief minister Himanta Biswa Sarma with representatives of tea garden workers and employees’ unions.

Moreover, Assam tea continued to fetch record prices in international markets. This year Gold tea from Manohari Tea Garden was sold at Rs 1.15 lakh per kg in auctions.

In Oil sector, state run refiners continued to pay higher dividends to the state government. Numaligarh Refinery Limited (NRL) paid a first interim dividend of Rs 114.76 crore in September.

Another good piece of news for the sector was shifting of the head office of Indian Oil to Bamunimaidam in Assam’s Guwahati. The state government has already provided seven bighas land for the construction of the permanent office.

In October, Assam government inked seven Memoranda of Understanding and Agreements (MoU, MoA) with different industry players to form a strategic collaboration for multi-tier transformational development.

Chief Minister Himanta Biswa Sarma termed the MoU signing as a momentous occasion as the understanding would help in harnessing the state’s potential in renewable energy, skill development, tourism and hospitality industries.

According to the government, the MoUs would also help the state to realise the dream of a developed Assam in line with the vision of the Prime Minister to transform the North East into a New Engine of Growth.

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