Centre moots B'lore, Chennai corridor

Centre moots B'lore, Chennai corridor
From Ajith Athrady, DH News Service, New Delhi:
Encouraged by enthusiastic response to the Mumbai-Delhi industrial corridor project, the Centre is actively pursuing a proposal to develop a Bangalore-Chennai industrial corridor.

A decision could come next month when Union Finance Minister P Chidambaram presents his budget in Parliament.

The department of industrial policy and promotion (DIPP) in the ministry of commerce and industries has convened a meeting of Karnataka and Tamil Nadu government officials here on Monday for consultations on the new proposal.

The two states may be asked to come up with their respective feasibility reports on the proposed corridor and identify sources of funding for developing it, said a senior ministry official. According to a tentative plan of the Centre, the southern industrial corridor will come up between Chennai-Sriperumbudur-Ranipet-Hosur-Bangalore.
However, indications are that Karnataka may seek extension of the proposed corridor from Chennai to Mumbai, passing through Bangalore, Davanagere and Hubli-Dharward. The Karnataka government is apparently of the view that merely to have a corridor between Chennai and Bangalore would not help the state significantly since the Bangalore-Hosur section is already witnessing rapid industrial expansion, said sources.

Various industrial bodies have been pushing for the Chennai-Bangalore corridor for many years.

MK’s support
A few months ago, Tamil Nadu Chief Minister M Karunanidhi came out in support of the proposal and wrote to Prime Minister Manmohan Singh asking him to take up implementation of the proposal. The DIPP believes that an industrial corridor between Chennai and Bangalore would be easy to develop as the areas that come under this have several key advantages in terms of availability of industries, skilled manpower and other basic infrastructure facilities.

Also, international airports in Chennai and Bangalore and two major sea ports at Chennai and Ennore would further contribute to the growth of this corridor, said the official.

While Bangalore has the strength in information technology, Chennai’s advantage lies in automobile technology, manufacturing and electronics. The two complement each other, the official said, adding that attracting an investment of at least $25 billion over the next five years to develop the corridor would not be a problem.

Salient features
*Where to where: Chennai-Sriperumbudur-Ranipet-Hosur-Bangalore
*Potential for investment of at least $25 billion
*Karnataka would like corridor from Chennai to Mumbai, passing through Bangalore, Davangere and Hubli-Dharward
*Pluses: Skilled manpower and infrastructure facilities
*Bangalore’s strength is in IT, Chennai’s edge lies in automobile tech, manufacturing and electronics