New Delhi: Union Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi on Wednesday approved multiple projects including 12 new project proposals under the National Industrial Corridor Development Programme (NICDP) and three projects of the Ministry of Railways.
Briefing the reporters here, Union Minister Ashwini Vaishnaw said, "India will soon wear a grand necklace of Industrial Smart Cities as in a landmark decision, 12 new project proposals under the National Industrial Corridor Development Programme (NICDP) with an estimated investment of Rs 28,602 crore have been approved. This move is set to transform the industrial landscape of the country creating a robust network of industrial nodes and cities that will significantly boost economic growth and global competitiveness.”
Giving details about the 12 new projects, Vaishnaw said, “Spanning across 10 states and strategically planned along 6 major corridors, these projects represent a significant leap forward in India's quest to enhance its manufacturing capabilities and economic growth. These industrial areas will be located in Khurpia in Uttrakhand, Rajpura-Patiala in Punjab, Dighi in, Maharashtra, Palakkad in Kerala, Agra and Prayagraj in Uttar Pradesh, Gaya in Bihar, Zaheerabad in Telangana, Orvakal and Kopparthy in Andhra Pradesh and Jodhpur-Pali in Rajasthan.”
Highlighting the important points of the projects, the Union Minister informed that NICDP is designed to foster a vibrant industrial ecosystem by facilitating investments from both large anchor industries and Micro, Small, and Medium Enterprises (MSMEs).
"These industrial nodes will act as catalysts for achieving $2 trillion in exports by 2030, reflecting the government's vision of a self-reliant and globally competitive India," added Vaishnaw.
He said that the new industrial cities will be developed as greenfield smart cities of global standards, built "ahead of demand" on the 'plug-n-play' and 'walk-to-work' concepts. "This approach ensures that the cities are equipped with advanced infrastructure that supports sustainable and efficient industrial operations," added the Union Minister.
He further said that aligned with the PM GatiShakti National Master Plan, the projects will feature multi-modal connectivity infrastructure, ensuring seamless movement of people, goods, and services. "The industrial cities are envisioned to be growth centres for the transformation of the whole region. The approval of these projects is a step forward in realising the vision of ‘Viksit Bharat’. By positioning India as a strong player in the Global Value Chains (GVC), the NICDP will provide developed land parcels ready for immediate allotment, making it easier for domestic and international investors to set up manufacturing units in India. This aligns with the broader objective of creating an 'Atmanirbhar Bharat', fostering economic growth through enhanced industrial output and employment," he added.
He further said that the NICDP is expected to generate significant employment opportunities, with an estimated one million direct jobs and up to three million indirect jobs being created through planned industrialisation.
"This will not only provide livelihood opportunities but also contribute to the socio-economic upliftment of the regions where these projects are being implemented," he added.
"The projects under the NICDP are designed with a focus on sustainability, incorporating ICT-enabled utilities and green technologies to minimise environmental impact. By providing quality, reliable, and sustainable infrastructure, the government aims to create industrial cities that are not just hubs of economic activity but also models of environmental stewardship," said Vaishnaw.
Talking about three projects of Railways, Vaishnaw said, "The Cabinet Committee on Economic Affairs (CCEA) has approved three projects of the Ministry of Railways with a total estimated cost of Rs 6,456 crore."
The approved projects will improve logistical efficiency by connecting the unconnected areas, increase the existing line capacity and enhance transportation networks, resulting in streamlined supply chains and accelerated economic growth.
The new line proposals will provide direct connectivity and improve mobility, providing enhanced efficiency and service reliability for Indian Railways. The multi-tracking proposal will ease operations and reduce congestion, providing the much-required infrastructural development on the busiest sections across Indian Railways, added Vaishnaw.
These three projects covering seven districts in four states, Odisha, Jharkhand, West Bengal and Chhattisgarh, will increase the existing network of Indian Railways by about 300 km. With these projects 14 new stations will be constructed, providing enhanced connectivity to two aspirational districts (Nuapada and East Singhbum). New Line projects will provide connectivity to 1,300 villages and about 11 lakh population. Multi-tracking project will enhance connectivity to 1,300 villages and about 19 lakh population, added the Union Minister.
"The capacity augmentation works will result in additional freight traffic of magnitude 45 MTPA (Million Tonnes Per Annum). The Railways being an an environment-friendly and energy-efficient mode of transportation, will help both in achieving climate goals and minimising logistics cost of the country, reduce oil import (10 crore litres) and lower CO2 emissions (240 crore kg) which is equivalent to plantation of 9.7 crore trees,” he said.
The Union Cabinet also approved another project which is the progressive expansion in the Central Sector Scheme of financing facility under ‘Agriculture Infrastructure Fund’ to make it more attractive, impactful and inclusive.
In a significant move to enhance and strengthen the agricultural infrastructure in the country and support the farming community, the Centre has announced a series of measures to expand the scope of the Agricultural Infrastructure Fund (AIF) scheme. These initiatives aim at expanding the scope of eligible projects and integrate additional supportive measures to foster a robust agricultural infrastructure ecosystem.
Viable Farming Assets: To allow all eligible beneficiaries of the scheme for the creation of infrastructure covered under 'viable projects for building community farming assets'. This move is expected to facilitate the development of viable projects that will enhance community farming capabilities, thereby improving productivity and sustainability in the sector.
Integrated Processing projects: To include integrated primary secondary processing projects in list of eligible activities under AIF. However standalone secondary projects would not be eligible and would be covered under MoFPI schemes.
PM KUSUM Component-A: To allow convergence of Component-A of PM-KUSUM with AIF for farmer/group of farmers/ Farmer Producer Organizations/ Cooperatives/ Panchayats. The alignment of these initiatives aims to promote sustainable clean energy solutions alongside the development of agricultural infrastructure.
NABSanrakshan: In addition to CGTMSE, it is proposed to extend AIF credit guarantee coverage of FPOs through the NABSanrakshan Trustee Company Pvt. Ltd. also. This expansion of credit guarantee options is intended to enhance the financial security and creditworthiness of FPOs, thereby encouraging more investments in agricultural infrastructure projects.
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