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Award industrial corridor projects only after land acquisition: Govt

Following delays in implementation of the Delhi-Mumbai Industrial Corridor (DMIC) due to bureaucratic reasons, the government has sent notices to nascent corridors as well.

business Updated: Feb 24, 2016 02:48 IST
Timsy Jaipuria
Industrial corridors
The government has asked industrial corridors to award infrastructure and manufacturing projects only after the bidding companies show they have acquired the land needed.(HT File Photo)

Often slammed for delays, the government has now asked industrial corridors to award infrastructure and manufacturing projects only after the bidding companies show they have acquired the land needed.

“Projects should be awarded only after land acquisition is complete. Till now, this was not the practice,” a senior government official said.

The change came after suggestions from the Prime Minister’s Office and the cabinet secretariat, which have been monitoring projects on a regular basis. “Senior members of both the offices suggested this approach after conducting detailed discussions,” the official said.

Following delays in implementation of the Delhi-Mumbai Industrial Corridor (DMIC) due to bureaucratic reasons, the government has sent notices to nascent corridors as well, such as the Amritsar Kolkata Industrial Corridor (AKIC), Chennai Bengaluru Industrial Corridor (CBIC), Visakhapatnam-Chennai Industrial Corridor (VCIC) and Bengaluru- Mumbai Economic Corridor (BMEC).

“Land acquisition by states is very slow. As a project approach, the corporation has now decided that it would award contacts only after possession of land,” Alkesh Kumar Sharma, CEO and MD of DMIC, told HT. Land is an issue in Haryana and Uttar Pradesh, where DMIC had proposed creating logistic hubs, Sharma said. “Rajasthan is moving forward addressing these issues, but even they are slow in acquisition.”

The official said the advisory council has been asked to prepared a detailed report on the progress of corridors. “As movement on the CBIC project is picking up pace, the Southern Zonal Council has been asked to prepare the project report only accounting (for) the acquired land. The council is working with Japan International Corporation Agency on this.”

A parliamentary panel was recently told to undertake field visits before preparing its report.

Earlier, the government wanted the Parliamentary Standing Committee on Commerce to study only the DMIC, as it has shown the maximum progress. However, the panel decided to undertake an in-depth study of the problems affecting all industrial corridors in a report titled ‘Growth and Development of Industrial Corridors in India’, which is likely to be tabled during the Budget session of Parliament that started on Tuesday.