Budget boost likely for industrial corridor projects
The Department of Industrial Policy and Promotion has asked the Finance Ministry to increase the outlay for industrial corridors for the coming financial year 2016-17 to Rs.3000cr from the existing Rs.1200cr. Setting up of the National Industrial Corridor Authority announced by the Union Finance Minister in budget 2014-15, may also be approved. NICA, to be headquartered in Pune, will oversee development of industrial corridor.
What are industrial corridors?
Industrial corridors, aimed at providing connectivity to the proposed industrial towns and smart cities are key to India's urbanization and industrialization. They are an important factor in increasing manufacturing in India from present 15-16% of GDP to 25% of GDP by 2022. 5 such corridors- Delhi-Mumbai Industrial Corridor, Amritsar-Kolkata Industrial Corridor, Bengaluru-Mumbai Economic Corridor, Chennai-Bengaluru Industrial Corridor, Chennai-Vizag Industrial Corridor are under development.
$181 bn needed for CBIC
According to the government's Integrated Master Plan, the Chennai-Bengaluru Industrial Corridor(CBIC) will require $180 billion of investment over the next 2 decades. A large portion of this investment will be required in the energy and transportation sectors. The plan foresees a growth rate of 15% per annum in the manufacturing sector which will be aided by the proposed industrial corridor project.
Dholera to be developed as aerotropolis
The civil aviation ministry has approved the proposed two runway, Rs.1712 crore, Dholera International Airport near Ahemedabad. With the nod, the Delhi Mumbai Industrial Corridor Development Corporation(DMICDC) aims to develop Dholera as an aerotropolis - a metropolitan region whose economy and infrastructure is based on airport centric commercial activities. Dholera, 100km from Ahmedabad, is an important logistics and economic node for the DMIC.
Japanese assistance for DMIC
The Delhi-Mumbai Industrial Corridor (DMIC) passing through UP, Delhi, Haryana, Rajasthan, MP, Gujarat, and Maharashtra is being developed with assistance from the Japan Industrial Cooperation Agency (JICA), a Japanese government financial agency.
ECIC to see auto and electronics boom
The East Coast Industrial Corridor (ECIC) passing along the 800 km segment of NH-16 along the coast of Andhra Pradesh will connect Vishakhapatnam to Chennai. According to Asian Development Bank(ADB), this corridor will see a growth rate of 24% for next 20 years in the auto and electronics sectors. ADB's loan of $625 million for the corridor is expected to push manufacturing in AP.
Parliamentary committee to look into issues
Faced with issues such as land acquisition and clearances, the proposed industrial corridor projects have been delayed significantly. The Parliamentary Standing Committee on Commerce will look into issues such as land acquisition and financing, including from multilateral agencies like the World Bank, Asian Development Bank, etc. Its report, expected during the monsoon session, will propose measures for expediting the projects in the corridors.