The manufacturing activities in northern states may get a boost as the Union Cabinet has approved the Amritsar-Kolkata Industrial Corridor and formation of the AKIC Development Corporation (AKICDC) on January 20, 2014. The commencement of preparatory work on developing the Amritsar-Kolkata Industrial Corridor (AKIC) has been approved. The AKIC is proposed to be developed in a band of 150-200 kms on either side of Eastern Dedicated Freight Corridor (EDFC), in a phased manner, and would therefore comprise a belt of at least 5.5 lakh square kms in the seven States of Punjab, Haryana, Uttarakhand, Uttar Pradesh, Bihar, Jharkhand, West Bengal.
Phase-1 will be in the nature of a pilot project, during which at least one Integrated Manufacturing Cluster (IMC) of 10 square kms each, in each of the seven States would be set up, as identified by State Governments. The States would however, be free to set up more than one IMC, if they choose to do so. Uttarakhand, being a hill state would be given flexibility with regard to the size of the cluster. Both brownfield as well as green field IMCs can be set up.
At least 40% of the land in each IMC will be permanently earmarked for manufacturing and agro-processing, considering that substantial part of the area in these States, except Jharkhand, is under agriculture.The IMCs envisaged under the project would be entitled to all the benefits available under the National Manufacturing Policy (NMP), 2011, provided they are organized as envisioned in the NMP.
A financial indicative commitment of about Rs 5,600 crore, spread over 15 years, by way of budgetary support from the Central Government has been estimated in the first pilot phase for setting up seven IMCs in the AKIC.
