Industrial Corridor Development Program: the government is stepping up its efforts

The National Industrial Corridor Development Program has gained momentum as the government strives to realize the country’s manufacturing potential.

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

The development program consists of setting up 11 industrial corridors comprising 32 nodes or projects to be carried out in four phases.

  • This is part of India’s efforts to develop world-class industrial nodes underpinned by efficient urban agglomerations and multi-modal connectivity.

  • It was approved in December 2020 to be completed by 2026-27 and is part of PM Gati Shakti’s plan to reduce national logistics costs.

  • The project has already attracted corporate investment in South Korea, Russia, China, the UK, Japan and India.

Why? The development of these industrial corridors will strengthen national supply chains and strengthen linkages to global value chains.

This will help India capture the huge emerging opportunity for electronics 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 for the program.

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

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

  • Dholera Special Investment Region in Gujarat

  • Shendra Bidkin Industrial Zone in Aurangabad, Maharashtra

  • Integrated Industrial Township of Greater Noida, UP

  • Vikram Udyogpuri Integrated Industrial Township in Ujjain, MP

  • Krishnapatnam in Andhra Pradesh (nearing completion)

  • Tumakuru in Karnataka (nearing completion)

Multimodal logistics hubs arrive at:

Land use: So far, 201 plots with 979 acres of land plots have been allocated to various national or multinational industrial units.

  • There have 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 monitored by several agencies and departments of the central government and state governments.

  • NITI Aayog is expected to support mapping of various projects, such as Industrial Corridors, Freight Corridors, Defense Corridors, National Industrial Manufacturing Zones, PLI-based Industrial Parks, PM-Mitra Parks, medical and pharmaceutical parks and logistics parks. .

  • The Ministry of Shipping has been asked to map all seaports connected to various industrial corridors to see if there are any significant links.

  • The Ministries of Trade and Industry and Road Transport and Highways also participate.

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

Investors are attracted providing multi-pronged support at all levels.

  • Commerce and Industry Minister Piyush Goyal plans roadshows to attract business and reasonable land pricing for industry, with offers such as different rental periods, payment flexibility rental bonuses, a rental model and a rental-with-rent option.

  • Goyal ordered that rates remain affordable and consistent, as high fees have a chilling effect on the industry.

  • Hands-on support is provided to plot beneficiaries until they enter commercial production.

  • Eighteen states are being asked to speed up the process, including offering land, failing which the government could ban these projects and offer them to other states that are willing to fast-track investments.

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

  • Data centers and conduits for laying fiber optics are also being considered.

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

About Barbara J. Ross

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