The project was proposed to be developed in a band of 150- 200 km on either side of Eastern Dedicated Freight Corridor in a phased manner. (Agencies)
The project is the second of its kind on the lines of the Delhi-Mumbai Industrial Corridor. It will be spread across 20 cities in seven states -- Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal.
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, it said.
"Phase-1 will be in the nature of a pilot project, during which at least one Integrated Manufacturing Cluster (IMC) of 10 square km each, in each of the seven states would be set up, as identified by state governments," an official statement said, adding, the Cabinet also approved setting up of AKIC Development Corporation (AKICDC).
She states would however, it said, 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 brown field as well as green field IMCs can be set up," it said.
About 40 percent of the land in each cluster 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 clusters envisaged under the project would be entitled to all the benefits available under the National Manufacturing Policy (NMP) 2011.
It also said that for infrastructure development, a PPP mode would be encouraged.
"While viability gap funding would be available for infrastructure amenable to PPP, trunk infrastructure not amenable to PPP will be developed through grant-in-aid from the central government," the statement said.
Further, the government will provide interest subsidy to states for land acquisition, grant-in-aid for project development and master planning of clusters, set up AKICDC, provide external connectivity and all benefits under NMP.
The Cabinet also approved that AKICDC will be set up immediately with a total equity base of Rs 100 crore, with 49percent stake of the Central Government, with balance equity to be taken by stakeholder state Governments as per option and willingness, and HUDCO.
The Central Government will also provide Rs 100 crore as project development fund to AKICDC.
The statement said that the Central Government would facilitate the establishment of tool room in clusters, enable technology partnership with IITs/National Institutes of Technology, grant of approvals for the IMC as well as help state governments to promote global investments in clusters.
"State governments would be responsible for ensuring availability of land for development of IMCs, necessary spurs for road infrastructure, facilitate generation, transmission and distribution of electricity, putting in place single window clearance mechanism, setting up SPV for development of clusters and ensure provision of built up places and low cost housing," it said.
The statement said that a three tier institutional structure at the Central level will be set up comprising an Apex Monitoring Authority under the Industry Minister, an Inter-Ministerial Group under Secretary, DIPP and the AKICDC for project development, coordination of implementation of the projects and inter-state activity.
"At the State level, a cell under the Chairmanship of Chief Secretary/Industrial Development Commissioner would be constituted. State Governments will set up a nodal agency at the cluster level for administration of clusters, or nominate an existing Special Purpose Vehicle (SPV)," it said.
It said that for approval of individual IMC, in the first stage, based on an appraisal of the proposal by the Inter- Ministerial Group, in-principle approval will be accorded and final approval would be granted after the conditions lay down.
Dashing hopes of recovery, industrial production contracted by 2.1 percent in November, the lowest in six months, mainly due to poor performance of manufacturing.
The manufacturing sector, which constitutes over 75 percent of the index, declined by 3.5 percent in November as against a contraction of 0.8 percent a year ago.
The project was proposed to be developed in a band of 150- 200 km on either side of Eastern Dedicated Freight Corridor in a phased manner.