The Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi has approved proposals for construction of industrial corridor nodes at Krishnapatnam Industrial Area in Andhra Pradesh at an estimated cost of the project of Rs. 2,139.44 crore and Tumakuru Industrial Area in Karnataka at an estimated cost of Rs. 1,701.81 crore
The establishment of industrial corridor nodes at Krishnapatnam Industrial Area in Andhra Pradesh and Tumakuru Industrial Area in Karnataka is expected to provide a big boost to the upcoming Chennai Bengaluru Industrial Corridor Project.
Envisioned on the backbone of major transportation corridors like Eastern & Western Dedicated Freight Corridors, Expressways and National Highways, proximity to ports, airports, etc., the objective of Industrial Corridor Programme is the creation of greenfield industrial cities with sustainable, ‘plug n play’, ICT enabled utilities to facilitate the manufacturing investments into the country by providing quality, reliable, sustainable and resilient infrastructure to industries. The developed land parcels in these cities will be ready for immediate allotment for attracting investments into manufacturing and positioning India as a strong player in the Global Value Chain.
The proposed greenfield industrial cities is envisaged to be self-sustaining with world-class infrastructure, road and rail connectivity for freight movement to and from ports and logistic hubs along with reliable power and quality social infrastructure.
Upon completion of the first phase of development, the Krishnapatnam node is estimated to generate 98,000 jobs out of which about 58,000 is likely to be employed at the site.
For Tumakuru node, employment of about 88,500 persons is estimated, out of which 17,700 persons will be from service industries such as retail, offices and other commercial opportunities in the initial development phase.
The Karnataka government also already marked out Vasanthanarasapura in Tumakuru district for being developed into a major industrial hub as part of the Chennai-Bengaluru industrial corridor project.
The Karnataka government will allot land free of cost to the special purpose vehicle (SPV) that will be set up to create, develop, and manage the Tumakuru node. The State government will contribute 50 per cent of the investment in the form of land, and the Central government will match the contribution in the form of a grant to develop infrastructure, up to a maximum of ₹3,000 crore.
The Karnataka government has identified 9,629 acres in Vasanthanarasapura for the development of the node.
The Chennai-Bengaluru Industrial Corridor (CBIC) is one of the five special economic and industrial corridors envisioned by the Centre in a bid to boost manufacturing and industrial growth, and to create jobs.
It will link Bengaluru and Chennai, measuring a total distance of 560 km.
The strategy to develop CBIC is part of the plan to achieve accelerated development, regional industry agglomeration in the states of Tamil Nadu, Karnataka and Andhra Pradesh and to facilitate development of a well-planned and efficient industrial base by providing smooth access to the industrial production units, decreased transportation logistics costs along with an improved delivery time and reduction in inventory cost and ensure increased private investments in manufacturing and industrial activity in the three states.