Latest updates

Tumakuru industrial node of the Chennai-Bengaluru Industrial Corridor to create more jobs

July 6, 2018

Vasanthanaraspura in Tumakuru district will be the next big industrial hub in Karnataka. The Karnataka government signed the Shareholders’ Agreement and State Support Agreement with the Central government to develop Tumakuru industrial node as a part of the Chennai-Bengaluru Industrial Corridor.

A Special Purpose Vehicle (SPV) to develop Tumakuru will be set up with the state and central governments as joint owners. The SPV will develop, operate, regulate, and manage the Tumakuru Node.

The Chennai-Bengaluru Industrial Corridor (CBIC) is one of the five special economic and industrial corridors envisioned by the central government in a bid to boost manufacturing and industrial growth and to create jobs. The CBIC will be an important corridor linking the cities of Bengaluru and Chennai, measuring a total distance of about 560 kilometres, and creating industrial nodes across 16 districts in Karnataka, Tamil Nadu, and Andhra Pradesh.

Under the CBIC, Karnataka identified the Vasanthanaraspura area of Tumakuru as a primary node and will create infrastructure for the establishment of small, medium, and large-scale enterprises and residential and commercial development. The CBIC will spur manufacturing, industrial development along the corridor, and will be instrumental in creating new jobs in many districts of Karnataka.

Welcoming the move, State Minister of Large & Medium Industries KJ George said, “When it comes to industries and manufacturing, Karnataka has always taken the lead. I am confident that the new industrial corridor and the Tumakuru node will be one more feather in our cap. Tumakuru may well be the next industrial hub for the south, and will provide employment to lakhs of our young and talented people.”

The minister added that the Karnataka government will allot land free of cost to the Special Purpose Vehicle that will be set up to create, develop, and manage the Tumakuru node. As per the regulations, the state government will contribute 50% of the investment in the form of land, and central government will match the contribution in the form of a grant to develop infrastructure, up to a maximum of Rs. 3000 crore.

The Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) with its experience of developing nodes has been nominated by Government of India as a nodal agency to give the technical assistance for the development of these nodes.

According to the minister George, “Karnataka government will look to implement the scheme via its nodal agency the Karnataka Industrial Areas Development Board (KIADB). This will ensure that the Tumakuru node will be fully integrated into and be governed by the regulations of the government of Karnataka, in order to ensure benefits of development reaches all sections of society.”

Alkesh Kumar Sharma CEO (sitting second from right) along with Gaurav Gupta (right), Principal Secretary, Department of Industries and Commerce, Government of Karnataka, signing the MoU

Gaurav Gupta, Principal Secretary, Department of Industries and Commerce, Government of Karnataka, said, “The CBIC will be the engine of growth in Karnataka and other southern states, and the state government will leave no stone unturned to take this development to every citizen. The government has approved the KIADB to sign the agreement on its behalf. The government of India will be represented by the National Industrial Corridor Development and Implementation Trust (NICDIT). KIADB and CEO, NICDIT signed the SHA and SSA today, and we will begin work right away.”

The proposed investment of Tumakuru Node will be around Rs 50,000 crore with an employment potential of 2,20,000 persons.

The government has identified a total of 9629 acres of land in Vasanthanarasapura, Tumakuru which will be used for development of the node. Adequate compensation has already been paid for owners of up to 1722 acres of such land, and land has been acquired. Preliminary notification for the further 7900 acres has been issued.

Commenting on the signing, N Jayaram, CEO of KIADB, said, “This is a culmination of decades of policies and experience of the KIADB. We are proud to serve Karnataka citizens and the government in implementing the CBIC Tumakuru Node project.”

© 2018 YourStory Media Pvt. Ltd. - All Rights Reserved