New Delhi: In a move to give a fillip to the Indian economy, the Union Cabinet on Wednesday cleared a series of decisions, including setting up 12 world-class greenfield industrial smart cities, multi-tracking projects across Indian Railways, expanding the scope of the of the agricultural infrastructure fund (AIF) scheme and hydropower development projects for the Northeast states, among others.
Given the potential to attract investments worth Rs 1.52-lakh crores, the Union government is focusing on the development of 12 new industrial cities in 10 states. Briefing the media after the Cabinet meeting, Union minister Ashwini Vaishnaw said that the Cabinet Committee on Economic Affairs (CCEA) approved 12 new project proposals under the National Industrial Corridor Development Programme (NICDP) with an estimated investment of Rs 28,602 crores.
“This move is set to transform the industrial landscape of the country creating a robust network of industrial nodes and cities that will significantly boost economic growth and global competitiveness,” Mr Vaishnaw said.
The Union minister said that spanning across 10 states and strategically planned along six major corridors, these projects represent a significant leap forward in India’s quest to enhance its manufacturing capabilities and economic growth.
“These industrial areas will be located in Khurpia in Uttrakhand, Rajpura-Patiala in Punjab, Dighi in Maharashtra, Palakkad in Kerala, Agra and Prayagraj in UP, Gaya in Bihar, Zaheerabad in Telangana, Orvakal and Kopparthy in AP, and Jodhpur-Pali in Rajasthan,” Mr Vaishnaw said.
As the government’s approach ensures advanced infrastructure that supports sustainable and efficient industrial operations, Mr Vaishnaw said that these projects under NICDP are expected to generate significant employment opportunities, with an estimated 1 million direct jobs and up to 3 million indirect jobs being created through planned industrialisation.
“These projects will create an investment potential of about Rs 1.52 lakh crore,” he added.
The Cabinet also approved two new lines and one multi-tracking project of Indian Railways at an estimated cost of over Rs 6,000 crores. According to a statement from the ministry of railways, the government aims to provide connectivity, facilitate ease of travel, minimise logistics costs, reduce oil imports and lower CO2 emissions, among others.
“The CCEA, chaired by Prime Minister Narendra Modi, has approved three railway projects with a total estimated cost of Rs 6,456 crore,” a statement from the railway ministry said.
“The approved projects will improve logistical efficiency by connecting the unconnected areas, increase the existing line capacity and enhancing the transportation networks, resulting in streamlined supply chains and accelerated economic growth. The multi-tracking proposal will also ease operations and reduce congestion, providing the much-required infrastructural development on the busiest sections across the Indian Railways,” the ministry said.
“The three projects covering seven districts in four states -- Odisha, Jharkhand, West Bengal and Chhattisgarh -- will increase the existing network of Indian Railways by about 300 km. With these projects, 14 new stations will be constructed, providing enhanced connectivity to two aspirational districts (Nuapada and East Singhbum),” it added.
The Union Cabinet also approved equity support of Rs 4,136 crores to Northeast states for developing hydropower projects, totalling 15,000 MW capacity over the next eight years.
“The Cabinet approved the proposal of the ministry of power for providing Central financial assistance to the state governments of the Northeast region towards their equity participation in the development of hydroelectric projects through joint venture collaboration between state entities and Central public sector undertakings,” the statement said.
The Union government has also expanded the scope of the Rs 1 lakh crore agricultural infrastructure fund scheme to make it more attractive, as part of its objective to strengthen farm-related infrastructure facilities in the country.
“These initiatives aim at expanding the scope of eligible projects and integrating additional supportive measures to foster a robust agricultural infrastructure ecosystem,” the government said.
Also, the Cabinet also gave the go-ahead to a proposal to hold a third batch of ascending e-auctions for 730 channels in 234 new cities under the Private FM Radio Phase III policy. The estimated reserve price has been pegged at Rs 784.87 crores.
“The Cabinet also approved a proposal to charge an annual license fee (ALF) of FM channels as 4 per cent of gross revenue excluding GST. This will be applicable for 234 new cities/towns,” Mr Vaishnaw said.
The government’s statement added that the private FM radio rollout in 234 new cities and towns would fulfil the unmet demand for FM radio in areas that still remain uncovered by private FM radio broadcasting and bring new and local content in the mother tongue.
“It will lead to the creation of new employment opportunities, a boost to local dialect and culture and ‘vocal for local' initiatives,” it underlined.
