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Recently, the Cabinet Committee on Economic Affairs (CCEA) has approved three infrastructure proposals worth Rs 7,725 crore for setting up greenfield industrial cities with connectivity to major transportation corridors.
- The cabinet also approved a modified scheme for interest subvention for Ethanol production expanding the scheme to include grain based distilleries and not just molasses based ones.
- The scheme would encourage ethanol production from grains like barley, maize, corn and rice and boost production and distillation capacity to 1,000 crore litres and help in meeting the goal of 20% ethanol blending with petrol by 2030.
- These projects are based on major transportation corridors like Eastern & Western Dedicated Freight Corridors, Expressways and National Highways, proximity to ports, airports.
- This will attract investments into manufacturing and position India as a strong player in the global value chain.
- These projects will generate ample employment opportunities through development of Industrial Corridors.
- Industrial corridors offer effective integration between industry and infrastructure, leading to overall economic and social development.
- Economic Significance:
- Avenues for Exports: The Industrial Corridors are likely to lower the cost of logistics thereby increasing the efficiency of industrial production structure. Such an efficiency lowers the cost of production which makes the Indian made products more competitive in international markets.
- Job Opportunities: Development of Industrial Corridors would attract investments for the development of Industries which is likely to create more jobs in the market.
- Logistics: These corridors would provide necessary logistics infrastructure needed to reap economies of scale, thus enabling firms to focus on their areas of core competence.
- Investment Opportunities: Industrial corridor provides opportunities for private sector investment in the provision of various infrastructure projects associated with the exploitation of industrial opportunity.
- Improved Functioning: Apart from the development of infrastructure, long-term advantages to business and industry along the corridor include benefits arising from smooth access to the industrial production units, decreased transportation and communications costs, improved delivery time and reduction in inventory cost.
- Environmental Significance:
- The establishment of Industrial Units in a scattered manner along the industrial corridor across the length of the state will prevent concentration of industries in one particular location which exploited the environment beyond its carrying capacity and caused environmental degradation.
- Socio-Economic Significance:
- The cascading effect of industrial corridors in socio-economic terms are many such as setting up of industrial townships, educational institutions, hospitals. These will further raise the standards of human development.
- Moreover, people would find job opportunities close to their homes and would not have to migrate to far-off places (would prevent distress migration).
- National Industrial Corridor Development Programme:
- Aim: The Government of India is developing various Industrial Corridor Projects as part of the National Industrial Corridor programme which is aimed at development of futuristic industrial cities in India which can compete with the best manufacturing and investment destinations in the world.
- National Industrial Corridor Development and Implementation Trust (NICDIT) is under the administrative control of Department for Promotion of Industry and Internal Trade (DPIIT) for coordinated and unified development of all the industrial corridors which are at various stages of development and implementation.
- It is India’s most ambitious infrastructure programme aiming to develop new industrial cities as “Smart Cities” and converging next generation technologies across infrastructure sectors.
- 11 Industrial Corridors Projects are being taken up for development with 30 Projects to be developed in 04 phases up to 2024-25:
- To make the corridors successful, India has to be part of the Industrial Revolution 4.0, which will be shaped by a fresh wave of innovation in areas such as smart robotics, materials that are lighter and tougher, and a manufacturing process built around 3D printing and analytics.
- Industrial corridors will help India’s efforts to lead the world in the fourth wave of industrial revolution. Effective execution of this plan could make India take a major leap in the race