First phase of CKIC will require investment of nearly Rs 100,000 crore

CHENNAI:

The first phase of Chennai-Kanyakumari Industrial Corridor (CKIC) project, which will have Madurai-Virudhnagar-Dindigul-Theni and Thoothkudi-Tirunelveli nodes, would require an investment of nearly Rs 91,000 crore, according to a study by Asian Development Bank.

Asian Development Bank, which has submitted the report to the state government, has stated that the investment requirements estimated for the identified high-impact projects for Thoothkudi-Tirunelveli node and MDVT are $6.22 billion (Rs 40,414 crore) and $7.91 billion (Rs 51,404 crore), respectively. The two industrial nodes span an area of 10,650 hectares.

It is learnt that the proposed nodes will be notiied as “industrial townships” under Tamil Nadu Industrial Township Area Development Authority Act, 1997 (TNITADA) and a dedicated authority will be established for each of the proposed nodes comprising the industrial township areas with the mandate of planning, developing, and maintaining the facilities within.

The CKIC, which covers 23 of the 32 districts of Tamil Nadu, accounting for 64pc of Tamil Nadu’s area, 70pc of its total population, and 75pc of the state’s urban population, will have six nodes but under the first phase only two will be taken up.

The other four industrial nodes include --- Cuddalore-Nagapattinam (the proposed Petroleum, Chemicals and Petrochemicals Investment region), Ariyalur and Perambalur, Tiruchirapalli-Pudukottai-Sivaganga and Ramanathapur (proposed National Investment and Manufacturing Zone).

All the six nodes were selected after taking into criteria that they do not overlap Chennai-Bengaluru Industrial Corridor, they are minimum distance away from Coastal Regulation Zone, forests, flood lines and other restricted areas, and the land acquisition status.

The key trunk route identiied for CKIC is the East Coast Road (ECR), traversing 800 kilometers (km) from Chennai to Kanyakumari and touching all the coastal districts of the state. This trunk route will strengthen port-based development and provide links to the existing major ports of Chennai, Ennore, and Thoothukudi, as well as the proposed port at Enayam, and complement the existing national and state highway network (NH7 and NH45) through lateral roads that link the hinterland and proposed industrial growth centers to these ports corridor.

Thoothukudi and Madurai have been identiied as anchor cities for the development of Thoothkudi-Tirunelveli Industrial Node and Madurai-Dindigul-Virudhnagar and Theni nodes respectively. The development of Thoothkudi-Tirunelveli node will generate a critical mass of population that enables metropolitan characteristics and optimizes infrastructure costs.

The integration of Madurai with Dindigul, Virudhunagar, and Theni through regional transport networks will be critical in the medium- to long-term. Restoration of the Madurai–Bodi rail network and suburban rail services between Madurai and Sattur are the two key projects that will enhance mobility from urban to industrial areas, the study stated.

Given that both the node regions face acute water shortages, an adequate water supply for industrial and domestic uses is key to the success of these Phase I nodes. Two key options for solving water challenges in the region include resource conservation and recycling, and the development of centralized desalination plants. Currently, water supply and sewerage account for over 55pc of the total investment requirement under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) in the two regions.

ADB study also suggested that GoI’s National Industrial Corridor Development and Implementation Trust (NICDIT) can be offered an equity stake in the SPVs in return for partial funding for node development.

Investment required for Thoothkudi-Tirunelveli Node:

Ports:  Rs 8,578 crore

Roads: Rs 19,944 crore

Railways:   Rs 4,837 crore

Airports:        Rs 187 crore

Energy:        Rs 1,450 crore

Water Supply: Rs 5,418 crore

Total:      Rs 40, 414 crore

Investment required for MDVT:
Roads: Rs 37,722 crore

Railways:   Rs 6,881 crore

Airports:        Rs 385 crore

Energy:        Rs 7,677 crore

Water Supply: Rs 1,739 crore

Total:      Rs 51,404 crore

Factfile:

East Coast Economic Corridor (ECEC) is being implemented by Union government in partnership with the Asian Development Bank (ADB).

2. Extending from Kolkata in West Bengal to Kanyakumari in Tamil Nadu, ECEC is conceptualized as India’s first coastal economic corridor

3. ECEC is closely aligned with the government’s Sagarmala initiative to promote port-based economic development.

4. The proposed Chennai–Kanyakumari Industrial Corridor (CKIC) is the second phase of ECEC.