Union Finance and Corporate Affairs Minister Nirmala Sitharaman on Monday chaired the third meeting of the Apex Monitoring Authority of the National Industrial Corridor Development and Implementation Trust (NICDIT), reviewing the progress of projects under the National Industrial Corridor Development Programme (NICDP) and calling for faster completion of infrastructure, land allotment, investment and production.
The meeting, attended by Union Commerce and Industry Minister Piyush Goyal, Madhya Pradesh Chief Minister Mohan Yadav and NITI Aayog Vice-Chairman Ashok Kumar Lahiri, discussed priorities for the next phase of industrial corridor development.
FM Sitharaman said the progress under NICDP and the results emerging on the ground indicated growing investor demand. She stressed that the next pipeline of industrial land and infrastructure should be prepared before the existing inventory is exhausted.
The Finance Minister said industrial corridors were an important pillar of the government’s strategy to expand manufacturing, improve logistics competitiveness and develop globally competitive industrial ecosystems.
She called for industrial corridor development to be pursued in the spirit of ‘Team India’ and highlighted the importance of convergence between freight, industrial development, railways and expressways, describing these as the FIRE Corridors.
FM Sitharaman said the focus should now move beyond project approvals to timely completion of infrastructure, land allotment, investment and commencement of production. She urged states to address bottlenecks related to land, connectivity, utilities, statutory clearances and the powers of project Special Purpose Vehicles (SPVs).
She also emphasised integrated planning through PM GatiShakti and investor-friendly land allotment mechanisms. Worker housing, healthcare, skilling, public transport and other social amenities, she said, should be integral components of industrial development.
The Minister highlighted government support for infrastructure and manufacturing through enhanced public capital expenditure, support to states under SASCI, improved credit support for manufacturing MSMEs and tax and customs measures aimed at strengthening domestic manufacturing and supply chains.
Goyal seeks investor-ready industrial ecosystems
Goyal called for faster, outcome-oriented implementation of Industrial Corridor projects, with greater emphasis on attracting investment and operationalising industrial nodes.
Goyal said BHAVYA and future industrial developments should be aligned with PM GatiShakti and planned through an integrated area-development approach.
He called for focused investor outreach and stronger marketing of industrial nodes, including leveraging opportunities created by India’s Free Trade Agreements and exploring country-specific and sector-specific industrial enclaves.
Goyal stressed the need to match investor requirements with suitable locations and develop ready-to-use industrial ecosystems equipped with plug-and-play infrastructure, flatted factories, worker housing and supporting economic and social infrastructure.
Such an approach, he said, would facilitate faster investment and commencement of operations.
20 projects approved across 13 states
The National Industrial Corridor Development Programme currently covers 20 approved projects across 13 states and seven industrial corridors.
Four industrial smart cities – Dholera, Shendra-Bidkin, Greater Noida and Vikram Udyogpuri – have entered the production stage.
The 12 projects approved in August 2024 are also progressing, with infrastructure development, land allotment and investor engagement increasingly being undertaken simultaneously.
So far, 469 plots covering around 5,348 acres have been allotted, with an estimated investment potential of approximately ₹2.21 lakh crore and employment potential of around 1.29 lakh persons. As many as 134 units are already in production, while another 95 units are under construction.
Sonowal pitches waterways for industrial corridors
Union Minister for Ports, Shipping and Waterways Sarbananda Sonowal stressed the need to integrate national waterways with industrial corridors and suggested examining waterways as a potential backbone for corridor development.
He also called for greater industrial infrastructure development in the Northeast, particularly at locations offering strong connectivity, land availability, local resource advantages and market potential.
NITI Aayog Vice-Chairman Ashok Kumar Lahiri urged state governments to give greater priority to empowering project SPVs with adequate planning, development and municipal powers under the approved institutional and legal framework of the Industrial Corridor Programme.
He said effective delegation of powers would allow SPVs to take timely decisions, reduce dependence on multiple state agencies and enable more coordinated and investor-friendly development.
BHAVYA gets 87 applications from states
The Apex Authority also reviewed the rollout of the Bharat Audyogik Vikas Yojana (BHAVYA), which aims to develop 100 investment-ready, plug-and-play industrial parks across the country.
Against up to 20 projects proposed for approval in the first round, 87 applications have been received from states, indicating strong interest in the scheme.
The meeting emphasised that BHAVYA projects should be planned and appraised in full alignment with PM GatiShakti, with infrastructure in and around industrial areas treated as an integral part of industrial development.
The appraisal of proposals will consider factors including availability of ready land, credible industrial demand, connectivity, assured utilities, realistic project phasing and the ability to attract investors at an early stage.
The meeting concluded with an emphasis that the success of industrial infrastructure projects would be measured not merely by the infrastructure created but by how quickly they attract investment, commence production and generate economic activity and employment.
