Chennai-Kanyakumari Industrial Corridor

News: Recently, the Asian Development Bank (ADB) and the Government of India signed a USD 484 million loan for the Tamil Nadu Industrial Connectivity Project. The loan is to improve transport connectivity and facilitate industrial development in the Chennai – Kanyakumari Industrial Corridor (CKIC) in the state of Tamil Nadu.

Details:

  • The loan is in line with Strategy 2030, ADB’s long-term corporate strategy, the project emphasises sustainability, climate change resilience, and road safety elements.
  • Under Strategy 2030, ADB will expand its vision to achieve a prosperous, inclusive, resilient, and sustainable Asia and the Pacific, while sustaining its efforts to eradicate extreme poverty.
  • CKIC is part of India’s East Coast Economic Corridor (ECEC).

What is an industrial corridor?

  • An industrial corridor is basically a corridor consisting of multi-modal transport services that would pass through the states as main arteries. Industrial corridors offer effective integration between industry and infrastructure, leading to overall economic and social development.
  • Five Industrial Corridor Projects:
  1. Delhi Mumbai Industrial Corridor (DMIC).
  2. Amritsar Kolkata Industrial Corridor (AKIC).
  3. Chennai Bangalore Industrial Corridor (CBIC).
  4. East Coast Economic Corridor (ECEC) with Vizag Chennai Industrial Corridor (VCIC).
  5. Bangalore Mumbai Industrial Corridor (BMIC).

Which infrastructural facilities do Industrial Corridors provide?

  • High-speed transportation network – rail and road.
  • Ports with state-of-the-art cargo handling equipment.
  • Modern airports.
  • Special economic regions/industrial areas.
  • Logistic parks/transhipment hubs.
  • Knowledge parks focused on catering to industrial needs.
  • Complementary infrastructure such as townships/real estate.

Significance of Industrial Corridors:

  • The Industrial Corridors are likely to lower the cost of logistics thereby increasing the efficiency of industrial production structure. Such an efficiency lowers the cost of production which makes the Indian made products more competitive in international markets.
  • It will attract investments for the development of Industries which is likely to create more jobs in the market.
  • The establishment of Industrial Units in a scattered manner along the industrial corridor across the length of the state will prevent concentration of industries in one particular location which exploited the environment beyond its carrying capacity and caused environmental degradation.
  • The cascading effect of industrial corridors in socio-economic terms are many such as the setting up of industrial townships, educational institutions, hospitals. These will further raise the standards of human development.