Industrial Corridor Development Programme: Government Ramps Up Efforts

The National Industrial Corridor Development Programme has gained traction, with the government pushing to realise the manufacturing potential of the country.

Context: The project has expanded from about three to four states with a few nodes to 18 states and the ecosystem for industrial development acquiring new speed and dimensions.

The development programme involves setting up 11 industrial corridors comprising 32 nodes or projects to be executed in four phases.

• It is part of India's efforts to develop world-class industrial nodes buttressed by efficient urban agglomerations and multimodal connectivity.

• It was approved in December 2020 to be completed by 2026-27 and is part of the PM Gati Shakti Plan for reducing the national logistics cost.

• The project has already attracted investments from companies in South Korea, Russia, China, the UK, Japan, as well as India.

What for? The development of these industrial corridors will strengthen national supply chains and boost linkages with global value chains.

This will help India to seize the huge emerging opportunity for electronic manufacturing, as the global value chain shifts towards trusted partners.

The Asian Development Bank is supporting the Indian government with a $250 million financing loan towards the the programme.

It is the first sub-programme of the $500 million loan to develop 11 industrial corridors spanning 17 states.

Progress: A review meeting of a monitoring body for the project chaired by the Finance Minister shows that so far the programme has been able to deliver four developed futuristic smart industrial cities.

• Dholera Special Investment Region in Gujarat

• Shendra Bidkin Industrial Area in Aurangabad, Maharashtra

• Integrated Industrial Township of Greater Noida, UP

• Integrated Industrial Township of Vikram Udyogpuri in Ujjain, MP

• Krishnapatnam in Andhra Pradesh (nearing completion)

• Tumakuru in Karnataka (nearing completion)

Multi-modal logistics hubs are coming up at:

• Nangal Choudhary in Haryana

• Dadri and Boraki in UP

Land allocation: Until now, 201 plots with 979 acres of land parcels have been allotted to various national or multinational industrial units.

• There's been investment commitments of over Rs 17,500 crore and potential employment of over 23,000.

• Commercial production has already started in 12 units, and nearly 40 companies are setting up factories.

The project is being monitoring by multiple agencies and departments of both the central and state governments.

• The NITI Aayog is expected to take up the mapping of various projects, such as industrial corridors, freight corridors, defence corridors, the National Industrial Manufacturing Zones, PLI-based industry parks, PM-Mitra parks, medical and pharma parks, and logistic parks.

• The Shipping Ministry has been asked to map out all the seaports connected to various industrial corridors to see whether there are meaningful linkages.

• The Ministries of Commerce and Industry and Road Transport and Highways are also chipping in.

• State CMs and ministers of various states like Gujarat, Haryana, Karnataka, Maharashtra, Uttarakhand, and Himachal Pradesh are participating too.

Investors are being drawn in by providing multipronged support at every level.

• Commerce and Industry Minister Piyush Goyal is considering holding roadshows to attract businesses and reasonable pricing of land for the industry, with offers such as different lease periods, lease premium payment flexibility, rental model, and lease-cum-rent option.

• Goyal has directed that the rates be kept affordable and consistent, as high charges are a deterrent to the industry.

• Hand-holding support is being provided to the plot allottees till they go into commercial production.

• Eighteen states are being urged to quicken the process, including offering land, failing which the government may foreclose those projects and offer them to other states who would be willing to speed up investment.

• The government is planning regional railways and hydrogen trains and wants these to be factored into infrastructure development.

• Data centres and ducts for laying optical fibre are being considered as well.

• An action plan for state governments to plan dedicated nodes for electronic manufacturing, which is highly employment-intensive.