Chennai-Bengaluru Corridor aims at 15% growth per year

The Tamil Nadu government has announced a Rs 13,314 crore infrastructure upgrade for Ponneri, a northern suburb of Chennai, as part of the development of the Chennai-Bengaluru Industrial Corridor (CBIC).

The investment required for the CBIC is an estimated $181 billion over 20 years. A big chunk of the money will go into energy and transport. The project, along the lines of the Delhi-Mumbai Industrial Corridor, is supported by the central government and the government of Japan.

According to a master plan developed by the Japan International Cooperation Agency (JICA), along with PwC and Nippon Koei, the project will provide a fillip to the 350 km stretch, home to major industries like Hyundai, Samsung, St Gobain and Flex. It also connects the automobile hub of Oragadam near Chennai.
 

ENROUTE TO AN INFRA CORRIDOR

• Tamil Nadu has announced Rs 13,414 crore for infrastructure upgrade for a part of the industrial corridor
   
• The investment required for the Chennai-Bengaluru Infrastructure Corridor is an estimated $181 billion over 20 years
   
• The project will provide a fillip to the 350 km stretch, home to major industries like Hyundai, Samsung, St Gobain and Flex.
   
• The corridor accounts for 6 per cent of India's gross domestic product
   
• The study has identified eight nodes based on land availability and growth potential
   
• The National Industrial Corridor Development Authority (NICDA) will oversee the CBIC development

The corridor accounts for 6 per cent of India's gross domestic product.

The goal set for the CBIC is 12-15 per cent corridor growth for the next 20 years and 25 per cent contribution to the GDP.

However, construction of a peripheral ring road between the two cities, upgradation of cargo handling at the Chennai and Ennore ports, and time-bound implementation of the project are challenges.

The focus sectors will be computers, electronics and optical products, automobiles, machinery and electrical machinery, pharmaceuticals, food processing, and textiles and apparels.

The study has identified eight nodes based on land availability and growth potential. Three nodes will be developed on priority: Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka.

The cost for developing the three nodes is estimated at Rs 64,977 crore. Around Rs 26,019 crore will go towards land acquistion, followed by water and effluent treatment facilities (Rs 13,395 crore), road infrastructure (Rs 7,419 crore), land development (Rs 7,121 crore), and power infrastructure (Rs 5,208 crore).

The National Industrial Corridor Development Authority (NICDA) will oversee the CBIC development. The NICDA will act as a project development partner to all special purpose vehicles and state government agencies for implementation of projects.

Central agencies like the National Highways Authority of India, the ministry of shipping and the railway board will be represented on the NICDA.

Each state government will form special purpose vehicles for developing nodes. These will support planning and implementation of the master plan, monitor progress, establish corridor units in each line ministry, set up funding from the Centre and the government of Japan, aid with procedural and infrastructure solutions, and assist in ease of doing business.