Chennai-Bengaluru Industrial Corridor is a boon for exporters

Chennai-Bengaluru Industrial Corridor is a boon for exporters


With the aim of uplifting the under-developed economic zones in the State, the Karnataka Government along with Governments of Tamil Nadu, Andhra Pradesh and the Centre is developing the ambitious Chennai-Bengaluru Industrial Corridor (CBIC). The resulting economic growth and regional development will contribute to more jobs, higher demand for ancillary industries and higher credit off-take in the region.

The National Industrial Corridor Development Authority (NICDA) is the project development partner to all special purpose vehicles (SPVs) created under CBIC and State government agencies will implement the industrial cities/projects in the various industrial corridors for the CBIC region. Japan International Cooperation Agency (JICA) is the nodal agency for implementation of Chennai-Bengaluru Industrial Corridor (CBIC).

The CIBC, modelled along the USD 100 billion Delhi-Mumbai industrial corridor, is expected to give a major thrust to commerce between South India and East Asia by enabling quicker movement of goods for export through Chennai and Krishnapatam ports. The corridor when completed will attract an investment of USD 181 billion and generate employment for 22 million skilled workers over the next two decades.

The corridor will have eight nodes based on land availability and growth potential. Three nodes, being Ponneri in Tamil Nadu (as engineering hub for auto and machinery), Tumakuru in Karnataka (advanced technology centric industrial) and Krishnapatnam in Andhra Pradesh (for resource-driven industries) have been selected for prioritised implementation.

Holistic approach to growth

The corridor’s approach for industrial development is primarily to provide state-of-the-art infrastructure facilities to transport finished goods to destination with minimum fuss and maximum speed. Establishing an economic corridor, then, is a holistic strategy that improves and enhances investments in transport, energy, and telecommunications in the region. A highly efficient transport system means goods and people can move without excessive cost or delay. Industries set up along the corridor can decrease their transportation costs, reduce inventory cost, make quicker delivery to customers and have smooth access to the industrial production units for supplies. Any prospective investor in the corridor’s Karnataka hub will benefit from easy access to ports, have ancillary industries and MSMEs acting as suppliers with easy reach and have access to high skilled labour force due to proximity to institutes of higher learning. Karnataka has largest number of medical institutes, industrial training institutes; largest software technology parks and 3rd largest engineering colleges in India. (http://www.investkarnataka.co.in/policies)

Tumakuru Karnataka’s first nodal point in CBIC

Tumakuru is the first node identified in Karnataka to prepare a Master Plan by JICA. It will be an industrial township under Article 243Q (1) (c) of the Constitution of India. Apart from being part of CBIC, Tumakuru is likely to develop into an influence zone for the proposed Mumbai-Bengaluru Industrial Corridor.

Vasanthanarasapura, Tumakuru District is identified as a National Investment and Manufacturing Zone (NIMZ). The government has allotted 900 acres for the NIMZ. It will focus on the establishment of state-of-the-art integrated industrial townships, skill development, social infrastructure, and single window clearances. The area itself will give employment to 0.25 million people.

Tumakuru to be electronic hardware hub

The NIMZ is to be developed in four phases and funded by both the State and Centre. The focus will be engineering and manufacturing. About 35 per cent of the land is to be dedicated to the manufacturing sector only. A tech hub nearly 42 times the size of Electronics City is coming up in Tumakuru, with road, rail, and port connectivity. Karnataka also has the advantage of having maximum skilled/technical manpower. (http://www.events.investkarnataka.gov.in/)

Tumakuru to be Machine tools hub

Indian Machine Tool Manufacturers Association (IMTMA) has proposed to set up a machine tool park at the NIMZ. A machine tools park will get 500 acres of land in that area. Around 600 machine tool companies have shown interest to set up manufacturing units. India's first Integrated Machine Tool industry Park (IMTIP) is set to come up in Karnataka near Bangalore. 100% FDIs allowed in the Machine Tools industry by the Indian Government. ( http://www.events.investkarnataka.gov.in/)

Prospective investors in Tumakuru will benefit immensely from faster delivery of goods to Chennai port and easy throughput for exports.

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