The Assam government on Wednesday disclosed that it has taken up with the Centre the matter of setting up production units by American, Japanese and Korean companies who are reportedly contemplating to shift their facilities from China to India because of Covid-19.

Industries and commerce minister Chandra Mohan Patowary said there are reports that American, Japanese and Korean companies are contemplating to shift their production facilities from China to India. “We have taken up the matter with the Centre’s department for promotion of industry and internal trade, Invest India, Japan External Trade Organization, US-India Business Council and US Chamber of Commerce to facilitate and advise those companies to set up their production facilities in Assam as the state has strategic locational advantage, vast natural resources, robust industrial infrastructure and reliable connectivity,” he said.

He said the state industries and commerce department has engaged Ernst & Young, a multinational firm, to study and assess the impact of the lockdown on the industrial sector in Assam and suggest policy framework to attract industries which are planning to move out of China.

He said 820 industries with 28,027 workers have been reopened following lockdown relaxations. Tea gardens have started functioning and are following Covid protocols. “About 7.33 lakh workers are engaged in the big tea gardens and about three lakh in the small gardens,” he added.

Patowary said industries in Assam contribute 39 per cent to the state’s GDP and provide direct employment to approximately four lakh people and indirect employment to around 20 lakh people. “Most of the industries were closed down during the lockdown, which has severely affected the state’s economy.”

The government had issued revised guidelines on Tuesday, allowing all industries in the state with their supply chains to restart without the need of special permission. During the third phase of the lockdown (May 4-17), the state government has allowed all personnel working in industries to commute to work all the time while there is a ban on people, barring those working in emergency services, from coming out of home after 6pm. Warehouses, godowns, goods carrying vehicles, all construction activities have also been allowed to continue at all times.

The minister said reopening of industry was a priority of the government as it contributes to employment and revenue generation.

Patowary said the tea industry has been hit hard as their major production period has been affected. The tea industry thanked the government for allowing it to reopen with 50 per cent workforce but said it would have been better if they were allowed to work with full strength.

“Because of the lockdown, the total decline in production of tea in Assam by big tea gardens and small tea gardens is estimated at 32 million kg amounting to a loss of more than Rs 500 crore. The chief minister has already announced waiver of the minimum fixed charge of supply of natural gas to the tea gardens which were closed during the lockdown,” he said.

Tea auction has resumed in Guwahati and all tea warehouses have opened.