Corridor authority outline ready; PM to resolve row over chief

By: | Published: November 19, 2014 4:18 AM

The government has readied a proposal outlining the structure of the National Industrial Corridor Development Authority...

The government has readied a proposal outlining the structure of the National Industrial Corridor Development Authority (NICDA) that would oversee the development of such corridors across the country. NICDA, as per a note prepared by the department of industrial policy and promotion (DIPP) in the commerce and industry ministry, will supersede the extant Delhi-Mumbai Industrial Corridor Project Implementation Trust and the DMIC Development Corporation (DMICDC).

The DIPP being the nodal agency for DMICDC wants secretary at the department to head the proposed authority but, sources said, the finance ministry’s department of economic affairs (DEA) has raised objection to this, saying that since the DMIC Trust is headed by the top bureaucrat at DEA, he/she should be at the helm of NICDA. DIPP secretary is ex officio chairman of DMICDC. The dispute over who should head NICDA will now have to be resolved by PM Narendra Modi.

The DIPP, importantly, has also proposed that NICDA take over the funds received by DMIC so that a common pool of funds is created for allocation to various industrial corridors being built. Though the Budget proposed an initial corpus of only R100 crore for NICDA, this could be hiked to R1,000 crore, sources added.

NICDA, to be headquartered in Pune, was proposed in Budget 2014-15 to coordinate the development of industrial/economic corridors. These include the Delhi-Mumbai Industrial Corridor (DMIC), Amritsar-Kolkata Industrial Corridor, Chennai-Bangalore Industrial Corridor, Bangalore-Mumbai Economic Corridor and the Vizag-Chennai corridor.

The government is also mulling a new law — the National Industrial Corridor Authority (NICA) Act — on the lines of the NHAI Act, to give certainty to foreign investors, including multilateral funding agencies such as the ADB (backing the Vizag-Chennai corridor) and government agencies such as JBIC and Japan International Cooperation Agency (supporting DMIC).

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition