PepsiCo’s Rs 787-crore plant boosts Assam industry push, govt eyes land banks

The Assam government is planning to create land banks and develop industrial estates at strategic locations to address the shortage of suitable land that is holding back new investments in the state, Chief Minister Himanta Biswa Sarma said on September 10.

Speaking to reporters after launching PepsiCo India's Rs 787-crore food manufacturing facility at Banekuchi in Nalbari, Sarma said several industries interested in setting up units in Assam were unable to proceed because suitable land was not readily available.

Sarma said the government was particularly looking for land located close to railway stations and highways, which could be developed into industrial estates with the necessary connectivity and infrastructure.

The chief minister said the newly inaugurated PepsiCo facility demonstrated the potential for large-scale manufacturing in Assam, while also creating opportunities for local farmers and workers.

The Rs 787-crore facility is expected to generate more than 200 direct and 500 indirect jobs, with around 75 per cent of its workforce expected to comprise women. Around 120 women will also receive digital literacy training, Sarma said.

Recalling that he had laid the foundation stone of the facility along with then Industries Minister Chandra Mohan Patowary on September 3, 2023, Sarma credited Patowary with helping bring the project to Assam.

"When you buy a packet of chips, you usually see that it has been manufactured in Uttar Pradesh, Karnataka or Maharashtra. From now on, you will see packets manufactured in Banekuchi, Assam, and these products will travel across the country," Sarma said.

The facility is also expected to give a major boost to Assam's potato farmers by creating a larger and more organised market for their produce.

According to Sarma, PepsiCo currently requires around 30,000 metric tonnes of potatoes, with the demand expected to increase to 70,000 metric tonnes by 2030.

The state government, PepsiCo and the State Bank of India have also entered into an understanding to facilitate the procurement of specialised potato seeds by farmers through Kisan Credit Cards. Around 5,000 farmers and their families are expected to benefit from the initiative.

To strengthen the potato supply chain, a Rs 35-crore cold storage facility with a capacity of around 10,000 tonnes will also be established, the chief minister said.

Sarma said expanding the industrial base within Assam was essential not only for economic growth but also to reduce the dependence of the state's workforce on jobs outside Assam.

Referring to the government's Shraddhanjali scheme, he said Assam had, in some months, brought back as many as 50 bodies of workers who died while working in other states, including Karnataka, Telangana, Maharashtra and Kerala.

"To prevent such situations, we need to establish industries and create employment opportunities within Assam so that our people do not have to leave the state in search of work," Sarma said.

The chief minister said investments worth around Rs 3 lakh crore had been brought into Assam across sectors such as hydrocarbons and petrochemicals, energy, mining and electronics.

These investments, he said, have the potential to generate employment for around one lakh people, while strengthening Assam's position as an emerging industrial destination in the Northeast.

The proposed land banks and strategically located industrial estates are expected to address one of the key infrastructure constraints faced by investors and make it easier for industries to establish manufacturing units in the state.