Industrial Corridor Development Programme (Subprogramme 2)

December 19, 2023

On December 15, 2023, the Government of India and the Asian Development Bank (ADB) solidified their partnership by signing a $250 million policy-based loan. This financial support, part of the Industrial Corridor Development Programme (Subprogramme 2), aims to bolster industrial corridor development, enhancing competitiveness, and reinforcing national and global supply chain connections.

Background

This collaboration builds on the success of the $250 million Subprogramme 1 loan approved by ADB in October 2021, which played a pivotal role in strengthening policy frameworks for the National Industrial Corridor Development Programme (NICDP) and the creation of 11 industrial corridors. The program focuses on enhancing the planning and management of designated industrial economic clusters, attracting private infrastructure, and manufacturing investments.

Integration with Prime Minister Gati Shakti Platform

The loan for Subprogramme 2 will help integrate industrial corridors with transport, logistics, and urban facilities under the government’s Prime Minister Gati Shakti platform. This integration is expected to bring about positive changes, promoting gender equality, providing training and upskilling opportunities for workers, and developing alternative financing solutions for industrial cluster development, including green finance.

Enhancing Workplace Safety and Environmental Practices

The second subprogramme also aims to improve workplace safety, integrate environment and climate change practices in industrial corridors, and contribute to creating a favorable investment climate. In alignment with the ease of doing business, the program plans to introduce a synchronized Central and State-level single-window clearance system and digitize processes to streamline logistics.

Job Creation

The Industrial Corridor Development Programme is anticipated to generate employment opportunities in various sectors, including agribusiness, automotives, electronics, food and beverages, heavy machinery, pharmaceuticals, and textiles. The positive impact on industrial nodes is expected to contribute to poverty alleviation in the corridor states.

« Previous Post Next Post »