Guwahati: Assam, renowned for its historical ties to petroleum, is undergoing a profound transformation from conventional crude oil to cutting-edge biofuels. Its endeavours in alternative fuels and industrial growth are attracting substantial investments and collaboration from both the public and private sectors, with the government offering crucial support in the form of equity and incentives.
In a recent interview with Pankhi Sarma, Assam government secretary for department of industries, commerce and PE, Dr Lakshmanan tells Business North East about the state's remarkable progress in alternative fuels and its growing industrial sector. Assam is on the brink of establishing biogas units, a significant component of the central government's sustainable alternative for transportation scheme, with assistance from Oil India.
BNE: Assam is making significant strides in the field of alternative fuels, particularly biofuels. Can you tell us more about the state's initiatives in this area?
Lakshmanan: Assam, with its historical connection to the discovery of petroleum, has been a vital contributor to the nation's energy sector. Now, we are transitioning from crude oil to biofuels. Substantial investments are pouring into bio-refineries, with the Numaligarh Refinery (NRL) taking the lead. We're also focusing on utilizing bamboo, paddy, and maize for ethanol production, along with exploring technologies to convert bamboo to methanol. These developments are a combined effort of both public and private sectors, with government support in the form of equity or incentives.
Moreover, as we produce biofuels, we are also working on establishing biogas units, in alignment with the central government's Sustainable Alternative for Transportation scheme. The first biogas plant is in the pipeline, with significant assistance from Oil India.
On another front, we're promoting greener transportation through CNG and electricity-based vehicles. Multiple departments, including transport and industries, have crafted policies inspired by best practices from other states. The state government is actively working to usher in a positive change in biofuel utilization.
BNE: With substantial investments and MoUs in place, what progress has been made so far?
Lakshmanan: Earlier this year, the government took a pivotal step by amending the existing industrial investment policy to cater to diverse industry requirements. Recognizing that different industries have varying needs, the state government introduced a customized incentive policy for industries. We've received numerous proposals, and they are being processed by an empowered committee chaired by the industries and commerce minister, with state cabinet approval.
We've already signed MoUs with nine companies, including big names like PepsiCo, Dalmia, DS Group, and Star Cement. Projects like PepsiCo's plant in Nalbari district and Dalmia's 24-megawatt project are already underway. Expansions in the cement industry are ongoing, and DS Group is set to begin assembling three-wheeler electric vehicles in November. The state has also signed MoUs with six other companies across various sectors, totalling significant investments. More projects worth billions are under consideration.
Furthermore, the focus isn't just on mega investments; we're equally committed to strengthening the MSME sector. These mega investments create markets and opportunities for MSMEs, ensuring sustainable economic growth.
BNE: What's next in line for the development of entrepreneurs in the SMEs, MSMEs, and the skill sector?
Lakshmanan: Entrepreneurship demands a combination of skills, awareness of regulations, and management capabilities. Assam's Skill Development Mission and the upcoming Assam Skill University inMangaldoi inDarrang district are pivotal in this regard. Multiple organizations, including SIRD, IIE, IOCL, and NRL, contribute to skill development. We're making skill development mandatory and introducing new courses to ensure that as industries grow, the workforce becomes increasingly skilled.
BNE: What are your thoughts on the establishment of a semiconductor plant in the state?
Lakshmanan: We believe that the recently notified semiconductor policy will be a welcome move for any major industry considerininvestments in the semiconductor sector across India. Our policies are competitive, but establishing a semiconductor industry in Assam presents challenges like the need for skilled manpower and improved connectivity. With the support of stakeholders, we are confident we can overcome these challenges. The semiconductor industry includes chip manufacturing, modification, and assembling, all of which require different skill sets. We're actively working towards developing these skills among our people.
BNE: Guwahati recently missed out on the Indian Smart City Award. Can you provide some insights into this development?
Lakshmanan: Guwahati embarked on multiple projects under the Smart Cities Mission, with a mix of successes and challenges. While some projects have progressed well, a few were not included in the parameters for the Smart City awards. Projects like the integrated traffic management system and street lighting are part of the ongoing phase, with significant progress already achieved. Smart city solutions encompass various aspects of city administration and beautification, and most projects have seen success. However, achieving the fullest potential of these initiatives requires cooperation from the citizens.
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