The legislation lays down the legal framework for planning, governing and regulating satellite city development, land use and infrastructure around Guwahati
The Assam Legislative Assembly has passed the Guwahati Satellite City Development Authority Bill, 2026, paving the way for the establishment of a dedicated authority to plan, coordinate, execute and supervise the development of satellite cities and integrated townships in and around Guwahati.
ALSO READ: As Stock Market Participation Grows in Assam, Financial Literacy Lags
The Bill will now be sent to the Governor for assent and will come into force upon its publication in the Official Gazette.
According to the Preamble, the legislation seeks to provide for the declaration of Satellite City Development Areas in Kamrup (Metropolitan) district and other areas that may be notified by the state government from time to time. It also provides for the establishment of the Guwahati Satellite City Development Authority (GSCDA) to oversee the planned development of these areas.
Replying to the discussion on the Bill, Housing and Urban Affairs Minister Kaushik Rai said the legislation had been framed after studying urban development models adopted in states such as Andhra Pradesh and Gujarat, where greenfield townships have been developed or are under development.
Rai said public participation would be a key component of the planning process. Draft plans would be placed in the public domain and shared with civil society organisations to seek feedback and suggestions before they are finalised.
"The draft plans will be first made available to the public, and members of civil societies for feedback and suggestions," Rai said.
The satellite city initiative was announced in the Assam Budget 2026–27, under which the state government proposed developing an Aerotropolis around the Lokpriya Gopinath Bordoloi International Airport as the nucleus of the project. The Budget also allocated Rs. 2,100 crore for land acquisition to facilitate its implementation.
The project will be implemented through the GSCDA, which will function as a Special Purpose Vehicle (SPV) of the Assam government.
Under the Bill, the state government will have the power to declare specified urban and rural areas as Satellite City Development Areas through notifications published in the Official Gazette. Once an area is notified, the GSCDA will become the principal authority responsible for all development activities within its jurisdiction.
All land-use changes, construction activities, infrastructure projects and layout approvals in notified areas will have to comply with the plans, regulations and directions issued by the authority. Local bodies, statutory authorities and government departments operating within these areas will also be required to align their activities with the directives of the GSCDA.
The Bill further provides that its provisions will prevail over any existing law, rule or regulation to the extent of any inconsistency.
The GSCDA will be established as a statutory body with powers to hold property, enter into contracts and initiate legal proceedings. The Chief Minister of Assam will serve as its ex officio Chairperson, while the Housing and Urban Affairs Minister will be the ex officio Vice-Chairperson.
The authority will comprise the Chief Secretary of Assam, the senior-most Secretary of the Housing and Urban Affairs Department as Member-Secretary, and nominated experts, domain specialists and industry representatives. It will meet at least once every six months to provide policy guidance and review major projects.
An Executive Committee will oversee the operational management and day-to-day implementation of projects. It will be chaired by the senior-most Secretary of the Housing and Urban Affairs Department and include the Chief Executive Officer (CEO), representatives from the Finance, Revenue, Industries and Development departments, along with town planning experts.
The state government will appoint a CEO, not below the rank of Secretary to the state government, to head the administrative operations of the authority. The CEO will oversee departments dealing with urban planning, information technology, finance, environment, public works and human resources.
The GSCDA will also have powers to recruit personnel, take officers on deputation and appoint consultants, domain experts and private service providers as required.
The authority will be responsible for urban planning, infrastructure development, regulation and financial management. It will prepare and implement master plans, zonal plans, infrastructure plans and local area development schemes, besides conducting urban surveys and framing building and zoning regulations.
The Bill empowers the GSCDA to develop roads, bridges, drainage and sewerage networks, water supply systems, electricity facilities, public utilities, communication and logistics infrastructure, stormwater drainage systems and rainwater harvesting facilities.
It will also undertake projects related to logistics hubs, knowledge cities and affordable housing schemes. These projects may be executed directly by the authority or through private entities, concessionaires or Special Purpose Vehicles.
In addition, the authority will have powers to create land banks, implement land pooling and town planning schemes, issue Transferable Development Rights (TDR) or Development Right Certificates, regulate building permissions, monitor compliance and take action against unauthorised development.
The GSCDA will also be empowered to establish project companies, public limited companies, joint ventures or trusts for infrastructure development.
After notifying a development area, the authority will prepare a master plan and invite objections and suggestions from the public before finalising it.
Once a development scheme comes into force, all government and local authority land within the notified area will vest with the GSCDA. The Bill also provides that designated land uses under the scheme will
automatically be converted in accordance with the approved plan, except in the case of protected ecological areas such as wildlife reserves, forests and wetlands.
The authority, or developer entities appointed by it, will be responsible for creating essential infrastructure, including roads, dedicated electricity lines, water supply systems, stormwater drains, sewage treatment plants, telecom ducts and public parks.
If a developer fails to complete infrastructure projects within the approved timeline or does not comply with the approved plan, the GSCDA will have the power to take over the project, the land and all ongoing works.
The state government may acquire land on behalf of the authority under applicable land acquisition laws. In addition, the GSCDA may acquire land through direct negotiations with landowners, mutual agreements, land pooling schemes, Transferable Development Rights (TDR) or by offering equivalent built-up space in lieu of cash compensation.
The Bill also provides for the creation of the Guwahati Satellite City Development Authority Fund. The state government will establish a Development Fund with initial seed capital to provide working capital support for the authority.
To finance its activities, the GSCDA will have the power to raise funds through bonds, debentures, shares, bank borrowings and loans guaranteed by the state government. It may also levy development charges for land-use changes, recover betterment charges from properties that benefit from development schemes, and collect user charges or cesses for services such as water supply, waste management, infrastructure and streetlight maintenance.
The authority will prepare an annual budget and submit an annual activity report to the state government, which will subsequently be placed before the state legislature. Its accounts will be audited every year by an auditor appointed by the state government.
The Bill also lays down a regulatory framework for development activities within notified Satellite City Development Areas.
Under its provisions, no individual, private entity or government department will be permitted to undertake development activities, subdivide land or alter existing structures without obtaining prior written permission from the GSCDA.
The authority will have the power to issue stop-work orders, seal unauthorised developments and carry out demolitions. Any expenses incurred for demolitions or the removal of unauthorised structures will be recoverable as arrears of land revenue.
Violations of the provison will attract penalties, including a continuing fine of ₹1,000 per day. Unauthorised development may invite a fine of up to ₹5,000, imprisonment for up to six months, or both.
Officials who grant construction permissions in violation of the Act may face imprisonment of up to six months and a fine of Rs. 10,000. Encroachment on public land may attract imprisonment of up to two years and a fine of up to ₹20,000.
The Bill also prescribes penalties for unauthorised use of public spaces. Parking vehicles, dumping waste or carrying out hawking activities without permission may attract a fine of up to ₹10,000, along with an additional ₹2,000 per day for continuing violations.
During the debate on the Bill, Congress legislator Abdur Rahim Ahmed, who represents the Chenga constituency, demanded that local MLAs, the Mayor of Guwahati and members of Zila Parishads from districts falling within the proposed satellite city areas be included in the authority's committee.
He also sought a provision to reserve at least 40 per cent of jobs generated under the project for local residents.