DIPP may seek cabinet nod for Amritsar Kolkata corridor
Jan 14, 2014
Source : The Economic Times


DELHI: The government plans to revive an industrial infrastructure programme that's aimed at creating jobs and giving manufacturing a push besides having the added advantage of being concentrated in some of India's more politically crucial states, months ahead of a general election.

The Department of Industrial Policy & Promotion (DIPP) is likely to seek Cabinet approval for the Amritsar-Delhi-Kolkata Industrial Corridor (ADKIC) as early as next week, raising the prospect that it could be used as a vote winner. The renewed thrust comes after the Prime Minister's Office had asked ministries last week for status reports on various projects for some action to be taken before the election code of conduct kicks in.

"Hopefully, within the next week, we will send the ADKIC proposal to the Cabinet for approval," said the DIPP official, who didn't want to be named. The corridor will pass through Uttar Pradesh and Bihar, key to winning power at the Centre, apart from other populous states such as Punjab, Haryana, UP, Jharkhand and West Bengal.

Since these are the most densely populated regions in the world, housing about 40% of India's 1.2 billion population, the government has also decided to leverage the inland waterway system between Allahabad and Haldia, although land availability remains an issue. "The North and the East are very different from states like Rajasthan, where you have enough land. Therefore, we have planned it differently," the official said.

In June 2013, an inter-ministerial group (IMG) comprising officials belonging to the DIPP, department of economic affairs, highways ministry, Railway Board, shipping ministry and ministry of urban development was set up to decide aspects including structuring and financing of the project. However, officials within the IMG admitted that several important aspects of the project are yet to be resolved.

ADKIC will use both the public private partnership (PPP) approach and the non-PPP approach. This latter part of the trunk infrastructure will be developed by a special purpose vehicle or implementation agency through a grant-in-aid.

The funding details of the project and the implementation strategy will be firmed up once the Cabinet gives its approval. For the corridor to work, proper infrastructure including transport systems integrating rail, road and ports must first be put in place, experts said. "If you do not have properly planned infrastructure, the cost goes up and retrofitting is needed like in the case of Gurgaon where the city was developed first and then the infrastructure," said Abhaya Agarwal, partner, infrastructure and PPP, EY. "The corridor should be broken into implementable sizes of projects and not like huge ones which cannot be done."

In the first phase, each state is likely to promote at least one 10 sq km integrated manufacturing cluster, 40% of which will be earmarked permanently for manufacturing and processing activities.

The corridor, expected to give manufacturing a fresh impetus, emerged from the India needs to do a lot more to generate enough employment for the rising number of young people entering the job market over the next few years.

India's manufacturing activity has been sluggish for the past two years, expanding by just 1% last fiscal and contracting 0.2% in the April-November period in this financial year.

Latest Realty News

DDA forms cell for land pooling
Jan 14, 2014
DELHI: The city has got a cell to implement and monitor the land pooling policy. The decision was taken at the DDA's board meeting on Friday. In addition, the Delhi government has been given 60 flats in CWG Village, a cause of friction with the land-owning agency last year. Addressing another major concern, the conversion of property from leasehold to freehold-the LG asked Delhi Development Authority to prepare a timeline for all the departments concerned so that delays and any irregularity can
News of LG Najeeb Jung visit moves DDA in Vasant Kunj
Jan 14, 2014
DELHI: Flat owners in Vasant Kunj and Mukherjee Nagar were amazed as DDA officials took charge and finished work that hadn't moved in six months.
Extend date for payment, say allottees
Jan 14, 2014
DELHI: Fed up with the quality of construction at Ganga Complex in Vasant Kunj, scores of residents are writing to DDA saying it shouldn't expect money for the flats it hasn't provided. DDA developed the flats for their last housing scheme in 2010. In December it had announced that the flats were ready and had asked for the full payment in the demand letter. After getting the letters, several allottees had been visiting the site and were upset with the state of affairs.
EPFO may provide housing to subscribers on additional payment of 10 pct
Jan 14, 2014
DELHI: Besides managing retirement funds, EPFO may come out with a scheme to provide housing to its over 5 crore subscribers on additional contribution of 10 per cent by them from their basic wages every month.
Ten stocks that can return upto 50% in 2014
Jan 14, 2014
DELHI: The S&P BSE Sensex managed to bounce back on Monday even though the macro triggers remain muted with IIP data reflecting the underlying weakening production trend in the manufacturing sector. Today, the index is witnessing dull trade.
Kept out of free water scheme, housing societies cry foul
Jan 13, 2014
DELHI: THE Aam Aadmi Party (AAP) may have fulfilled its poll promises on free water and cheaper power, but scores of households which have not been extended the benefits, especially group housing societies, have accused the government of “step-motherly” treatment.
Delhi govt housing scheme sparks NRI interest
Jan 13, 2014
DELHI: Since the Delhi Development Authority (DDA) announced a few days earlier of a new housing scheme this year, the phones at its offices have not stopped ringing. The calls are mostly from Indians based in America and South Africa, making enquiries about the new opportunity.
Rod Hunter: Why India needs to take intellectual property seriously
Jan 13, 2014
DELHI: Dr Reddy's Laboratories' chairman, G V Prasad, called for the Indian pharmaceutical industry to move up the value chain from generics through investing in research and innovation, reported the Business Standard last week. Mr Prasad's aspirational call to action is, however, a sad reminder of how the government's policies create a hostile environment for investment and hobble Indian creativity. A salient example of these counterproductive policies are the attacks on some 15 medicine patent
FIIs pour in over Rs 3,500 crore in debt market
Jan 12, 2014
DELHI: Overseas investors have pumped in over Rs 3,500 in the Indian debt market so far in January, when the US Federal Reserve is scheduled to start reducing its monthly bond purchases by $10 billion.
CCI rejects abuse of dominance complaint against Akshaya
Jan 11, 2014
DELHI: The Competition Commission has dismissed allegations of abuse of dominant market position against real estate developer Akshaya Private Ltd with respect to residential markets in Tamil Nadu.

Latest Realty News Of State

Realty Talk's