Finance Minister Nirmala Sitharaman on Thursday ordered the Niti Aayog to submit a report by the end of October after mapping all industrial clusters – including cargo and defense corridors, logistics parks, textile parks and centers pharmaceuticals – so they can be incorporated under Prime Minister Gati Shakti. initiative.
During the first meeting of the Apex Supervisory Authority for the National Industrial Corridor Development Program, led by her, Sitharaman also asked the Ministry of Shipping to consider linking various seaports in the country with industrial corridors. These were among the seven action points highlighted by the Minister.
“I find a lot of them are still loose and unrelated. Mapping it will probably give a better idea of how they can all fit into this pattern of things,” Sitharaman said.
The meeting was attended by Trade and Industry Minister Piyush Goyal, Railways and Telecommunications Minister Ashwini Vaishnaw, NITI Deputy Chairman Aayog Suman Bery, Chief Ministers of some states including Madhya Pradesh , Uttarakhand and Karnataka, Ministers of State Industries and Senior Officials.
PM Gati Shakti is an online platform, which was proposed by Prime Minister Narendra Modi to promote integrated planning and coordinated implementation of various infrastructure connectivity projects.
Sitharaman also suggested Goyal look at the progress made in the three industrial corridors in South India – Chennai Bengaluru Industrial Corridor, Bengaluru Mumbai Industrial Corridor and Vizag Chennai Industrial Corridor.
“For some reason… the three corridors coming from the south were not treated elaborately,” Sitharaman added. The next review meeting will probably take place in November.
The Center is developing various industrial corridor projects under the National Industrial Corridor Program. The idea is to develop entirely new industrial smart cities that can compete with the best manufacturing and investment destinations in the world.
For his part, Goyal stressed the need to focus on quickly attracting investors to these industrial corridors and asked NICDIT as well as the States to carry out road shows for this purpose. “We need to allocate the land quickly. The land should be reasonably priced for the industry and we should allow for innovative ways such as different rental periods, rental premium payment flexibility, rental model, rent with lease option,” said Goyal. He also called for “affordable and consistent” electricity tariffs to attract investors. “High electricity tariffs are a deterrent to industry,” he added. Goyal warned that the Center would not support any new industrial parks if existing parks are not put to good use.
Vaishnaw urged states to have dedicated nodes for electronics manufacturing, which will create massive jobs. “There is a huge opportunity for electronics manufacturing. The whole global value chain is moving away from unreliable partners and India is seen as a trusted partner. The success of electronic manufacturing last in India has been witnessed by the world. Out of nowhere, we hit $76 billion and it’s now growing in double digits,” he added.