Chennai-Bangalore corridor project to come up soon
The ambitious Chennai-Bangalore Industrial Corridor (CBIC) project, which is the second largest mega industrial corridor in India is being funded by the Japan International Cooperation Agency (JICA). The first such project is the Delhi Mumbai Industrial Corridor (DMIC) which will also get a part of its fund by the JICA.
DMIC and CBIC
The DMIC is a mega-infrastructure project of USD 90 billion covering a total length of 1483 km from Delhi to Mumbai. The project passes through six states including Delhi, Uttar Pradesh, Haryana, Rajasthan, Gujarat and Maharashtra. The funds for the DMIC project will be collected through private-public partnership and foreign investment. Japan government will provide the major part of investment for this project.
The CBIC project only involves two states- Tamil Nadu and Karnataka. Though this corridor is not likely to benefit industries in Karnataka much, it would offer world-class connectivity to a port (Chennai) in the Bay of Bengal. The corridor from Chennai to Bangalore is proposed to pass along places including Sriperumbudur, Ranipet, Palamaner, Bangarpet, Hoskote, etc.
The CBIC project proposal has raised enthusiasm in the south Indian states as it offers immense development potential to the Southern region. While the Andhra Pradesh government has been requesting to extend the project till the Krishnapatnam port, the Karnataka government is seeking for the inclusion of Chitradurga as a manufacturing hub has been planned between Chitradurga and Tumkur.
JICA shortlists infrastructure projects
The Agency is presently listing out some other infrastructure projects that are urgently required in order to promote industry and economic activity. The projects include construction of peripheral ring road between Bangalore and Chennai, upgradation of cargo handling at Chennai and Ennore ports including access to them, etc. Also there are many other transportation projects in the pipeline which were planned by the states governments of Karnataka and Tamil Nadu.
DPR for CBIC gets ready
The detailed project report is being prepared and would be ready by the year end, said Mr. T. K. A. Nair, Advisor to Prime Minister, who is closely monitoring the progress of the project. The JICA is preparing the project report. It will study all the details of the project such as the total outlay and the mode of funding. The master plan for CBIC is also being done for 2030 and is expected to be finalised by June 2014.
JICA funds other projects
The JICA is also funding other infrastructure projects in India including DMIC, Delhi Metro and the western arm of dedicated rail freight corridor. Shinya Ejima, chief representative of JICA in India, said that there is enormous demand for infrastructure development in India and in this regard, their finances have been utilised effectively.
The Agency is getting ready to fund the second industrial corridor in India between Chennai and Bangalore. Japan’s sole official development assistance (ODA) agency is funding a study for the corridor even though the DMIC, its first such engagement in India, is yet to take off.
The CBIC project has been witnessing high prominence from both the Governments of India and Japan. The project is important to Japan because, more than 400 companies from Japan, including Nissan and Toshiba, have set up their facilities at Chennai, for which better roads are necessary to ensure smooth movement of goods.
It has been planned that the first phase of CBIC will connect Chennai and Bengaluru, and then in a later stage it will be extended to Andhra Pradesh as well. At present, the study team is trying to help out the Japanese firms that have set up their manufacturing base in and around the Manali industrial area to enable them to move their goods from these ports. Sources have said that the Japanese Embassy in New Delhi was coordinating the entire exercise.
