Massive Govt Funding for Tata’s Jagiroad Semiconductor Project Faces Scrutiny

Amid widespread praise for the 'Advantage Assam' initiative, a new and significant revelation has come to light, shedding light on a key aspect of Assam’s investment growth. While the state government had previously highlighted the Tata Group’s semiconductor manufacturing project in Jagiroad as one of the flagship outcomes of the first edition of the 'Advantage Assam' summit, recent developments have sparked fresh debates about the extent of public support to the project.

During a question-and-answer session in the Assam Legislative Assembly on March 6, 2025, Independent legislator Akhil Gogoi raised a crucial query regarding the land allocation and government support for the semiconductor project. Gogoi asked, “How much land and what kind of assistance has been provided to Tata for establishing the semiconductor manufacturing unit in Jagiroad?”

In response, Assam’s Minister for Industries and Commerce, Bimal Borah, revealed that a total of 517.27 bighas of land has been allocated to Tata Group for the semiconductor project. Additionally, both central and state governments will provide substantial capital investment subsidies. The central government will contribute 50% of the eligible capital investment, while the Assam government will chip in with a further 25%, totaling a massive Rs 20,250 crore in combined support.

Further, the government confirmed that Tata will only need to invest Rs 6,750 crore from its own funds, as the remaining 75% of the funding will be sourced from government subsidies. According to the government’s official statement, Tata will receive Rs 13,500 crore from the central government and Rs 6,750 crore from the state government, making the total amount of government assistance a staggering Rs 20,250 crore.

This revelation has triggered a strong public reaction across Assam, with many questioning whether the project, which has a total estimated value of Rs 27,000 crore, would truly remain a private sector initiative given the overwhelming government financial support. Critics argue that the public funding being directed to the project raises serious concerns over whether this could be classified as a public-private partnership or, in essence, a public sector initiative in disguise.

While the state government has emphasized that such investments will create numerous job opportunities and bring technological advancements to the region, questions are being raised about the public burden of such a colossal investment. Public sector experts and local communities are voicing concerns over whether the state could have allocated these resources more efficiently, perhaps directly funding Assam’s own industrial initiatives instead of providing such large-scale subsidies to a private entity.

The ongoing controversy calls for greater transparency in the disbursement of public funds to major industrial projects. With this investment, the semiconductor unit in Jagiroad could potentially revolutionize the industrial landscape of Assam, yet it also demands careful scrutiny and responsible fiscal management to ensure that the benefits are maximized for the people of Assam, not just a single corporate entity.