Question : Chennai-Bengaluru Industrial Corridor

(a) whether under the proposed Chennai-Bengaluru Industrial Corridor, a National Investment and Manufacturing Zone (NIMZ) has been envisaged over a vast expanse of 13,000 acres near Vasanthanarasapura (Tumkur) and if so, the details thereof;

(b) whether more than 60% of the required land has been identified and acquired by the State Government for the said purpose and if so, the details thereof; and

(c) the extent of equity funds to be released by the Centre for setting up a Special Purpose Vehicle (SPV) for this project?

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THE MINISTER OF COMMERCE & INDUSTRY
(SHRI PIYUSH GOYAL)

(a) to (c): A statement is laid on the Table of the House.

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STATEMENT REFERRED IN REPLY TO LOK SABHA STARRED QUESTION NO.257 FOR ANSWER ON 11TH MARCH, 2020.


(a): The Government of India had granted ‘in-principle’ approval for a National Investment and Manufacturing Zone (NIMZ) at Vasanthanaraspura under Tumakuru District in Karnataka under ‘National Manufacturing Policy (NMP)’ in 2012. Subsequently, this project was considered for ‘final approval’ in the 1st meeting of High Level Committee (HLC) under NMP in June 2015 wherein the Government of Karnataka had informed that the final notification had been issued for 1700 acres of land and about 7900 acres of land was then at acquisition stage which would take another 3 to 4 months. The HLC directed the State Government to acquire the total land required for the project and to transfer in the name of the respective industrial development authority which would form a SPV. Hence, for want of complete land required for the project, the project was not accorded ‘final approval’.

(b): Tumakuru with an area of 8483 acres has been identified for development as one of the priority node in the State of Karnataka as a part of Chennai Bengaluru Industrial Corridor (CBIC)’s project. Detailed master planning and preliminary engineering for phase I over an activation area admeasuring 1736 acres have been completed. 1722 acres of land is already under possession of the State Government. The Government of Karnataka has informed that this land was earlier proposed for establishment of NIMZ.

(c): Shareholder’s Agreement (SHA) and State Support Agreement (SSA) have been executed and a SPV namely “CBIC Tumakuru Industrial Township Limited” has been incorporated between National Industrial Corridor Development and Implementation Trust (NICDIT) and Govt. of Karnataka/Karnataka Industrial Area Development Board (KIADB). An initial equity contribution of Rs. 5 crore has already been released by NICDIT to the SPV of the project.
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