Chennai-Bengaluru Industrial Corridor to generate 2, 20,000 jobs
The Chennai Bengaluru Industrial Corridor (CBIC) is one of the five special economic and industrial corridors envisioned by the central government in a bid to boost manufacturing and industrial growth, and to create jobs.
asanthanaraspura in Tumakuru district is all set to be the next big industrial hub in Karnataka. The government of Karnataka entered into an agreement last week with the Central government to develop Tumakuru industrial node as a part of the Chennai-Bengaluru Industrial Corridor.
The government of Karnataka signed the Shareholders’ Agreement and State Support Agreement for the same and a Special Purpose Vehicle (SPV) to develop Tumakuru will be set up with Karnataka government and Government of India as joint owners. The SPV will develop, operate, regulate and manage the Tumakuru Node in compliance with the Master Plan.
The CBIC will be an important corridor linking the cities of Bengaluru and Chennai, measuring a total distance of about 560 kilometres, and creating industrial nodes across 16 districts in the states of Karnataka, Tamil Nadu, and Andhra Pradesh.
Under the CBIC, Government of Karnataka has identified the Vasanthanaraspura area of Tumakuru as a primary node and will create infrastructure for the establishment of small, medium, and large-scale enterprises and residential and commercial development. The CBIC will spur manufacturing, industrial development along the corridor, and will be instrumental in creating new jobs in many districts of Karnataka.
Welcoming the move, K.J. George, Minister of Large & Medium Industries, Karnataka, said, “When it comes to industries and manufacturing, Karnataka has always taken the lead. I am 100 per cent confident that the new industrial corridor and the Tumakuru node will be one more feather in our cap. Tumakuru may well be the next industrial hub for the south, and will provide employment to lakhs of our young and talented people.”
The minister also added that the Karnataka government will allot land free of cost to the SPV that will be set up to create, develop, and manage the Tumakuru node. As per the regulations, 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 grant to develop infrastructure, up to a maximum of Rs 3000 crore.
The Delhi-Mumbai Industrial Corridor Development Corporation [DMICDC] with its experience of developing nodes has been nominated by the Government of India as nodal agency to give the technical assistance for the development of these Nodes.
K.J. George further said, “Karnataka government will look to implement the scheme via its nodal agency the Karnataka Industrial Areas Development Board. This will ensure that the Tumakuru node will be fully integrated into and be governed by the regulations of government of Karnataka, in order to ensure benefits of development reach all sections of society.”
Gaurav Gupta, Principal Secretary, Department of Industries and Commerce, Government of Karnataka said, “The CBIC will be the engine of growth in Karnataka and other southern states, and the state government will leave no stone unturned to take this development to every citizen. The government has approved the KIADB to sign the agreement on its behalf. The government of India will be represented by the National Industrial Corridor Development and Implementation Trust (NICDIT). KIADB and CEO, NICDIT will sign the SHA and SSA on 6th July, and we will begin work right away.”
He also added, “The proposed investment of Tumakuru node will be around Rs 50,000 crore with an employment potential of 2, 20,000 people.” The government has identified a total of 9629 acres of land in Vasanthanarasapura, Tumakuru which will be used for development of the node. Adequate compensation has already been paid for owners of up to 1722 acres of such land, and land has been acquired. Preliminary notification for the further 7900 acres has been issued.
Commenting on the signing, N Jayaram, CEO of KIADB said, “This is a culmination of decades of policies and experience of the KIADB. We are proud to serve Karnataka citizens and the government in implementing the CBIC Tumakuru Node project.” He further added that the CEO of NICDIT has shared a draft of the SHA and SSA and that has been further shared with and approved by government of Karnataka.
The Additional Chief Secretary/Principal Secretary, Commerce &Industries Department will be appointed as the Chairman of the Board while the CEO & MD of the SPV shall be appointed by the Board. The Board comprises of six Directors, consisting of three Directors each nominated by the State Government and NICDIT. With this move, Karnataka government is taking a giant step in taking development to the people and creating pockets of excellence across the state.