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Tamil Nadu to Develop Chennai-Bangalore Industrial Corridor Print E-mail
Written by Krishna Kumar   
Wednesday, 31 August 2011
Chennai: The Tamil Nadu Government is planning to develop its own industrial corridors for the dispersal of industrial investments and development of green field infrastructure projects. It is planning a Chennai-Bangalore industrial corridor along the traditional route of Chennai-Ranipet-Hosur-Bangalore.

Dr N Sundaradevan, IAS, Principal Secretary - Industries, Government of Tamil Nadu said that this would be different from the corridor mooted by the Central Government along three National Highways, linking Chennai to Bangalore  through Nellore and Chitradurga. Tamil Nadu was also planning to develop Chennai-Madurai-Tuticorin-Tirunelveli corridor and Coimbatore-Salem corridor.

He was addressing a Conference on "Industrial Corridors in Southern Region” organized by the Confederation of Indian Industry (CII).

The State has 19 industrial Estates for medium-scale industries and 100 for small-scale industries. However, their development was not on par with those in and around Chennai and Hosur. “Social infrastructure is an important aspect of industrialization’’, Dr Sundaradevan said. The industrial corridor proposals were to create this infrastructure and encourage dispersal of industries and industrialization, he said.

Answering a specific question by Dr Sundaradevan, Mr Talleen Kumar IAS, Joint Secretary, Department of Industrial Policy and Promotion (DIPP), Government of India, said the Centre would take up industrial corridor projects in the South only after the standardization of the Delhi-Mumbai Industrial Corridor (DMIC) project now under way. Mr. Kumar who made a presentation on DMIC through video conferencing from Delhi, said  “we need to learn from DMIC to avoid mistakes and standardize investment process for developing green field or brown field industrial corridors and industrial cities across the country’’.

He said the 1483-km DMIC would have 24 nodes or city centers, and seven of them would be developed in the first phase. Three of them have got clearance from the empowered group of ministers. The seven cities would be around Dadri (UP), Manasar  ( Haryana), Neemrana ( Rajasthan), Pithampur ( MP), Ahmedabad ( Gujarat) , Nashik  and Dighi Port ( Maharashtra). Funding arrangement for these green field cities would be announced soon. Initial risk of investment would be borne by the government by creating the trunk infrastructure. Then project specific- special purpose vehicles would be bid out for private participation and investment, he said.

DMIC was being developed with the financial assistance of the Japanese government. Initial investment on trunk infrastructure would be $ 4 billion each. The investment envisaged, with private participation was ranging from $ 90 billion to $ 200 billion during the next 30 years, Mr Kumar said.

He said 40% Indians would be living in cities and 68 cities would have more than one million population and 70% GDP would be from cities by 2030. Cities would generate revenue and create wealth. The DMIC cities would help the passage to urbanization and lead India’s economic growth for the next two to three decades.  They would be benchmarked against the best new generation industrial cities in the world.

Mr T T Ashok, Chairman CII Southern Region, said industrial corridors were proposed along Chennai-Bangalore-Hyderabad, Chennai-Hyderabad, Kochi-Coimbatore-Bangalore and North-South in Kerala, for the development of manufacturing and service industries. The focus in Tamil Nadu could be automobiles and auto ancillaries, aerospace in Bangalore, biotechnology, pharmaceuticals and  petrochemicals in Hyderabad.

He said huge investments have to be made in road, and rail network and for power generation. The investment model have to tackle problems like funding, land acquisition, rehabilitation of the affected people and expertise of large project management.

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