Industrial Development in Vijayawada Need Strong Economic Corridor

Vijayawada to Create a Well-Built Economic Base – Patni Properties

Industrial Development in Vijayawada Need Strong Economic Corridor

Typically an industrial corridor, developed by the government in private partnership, will act as an intermediary to develop infrastructure projects, which in turn attract industries and of course investments.

“The essence of such an industrial corridor is to increase employment potential, exponen¬tially raise exports and augment industrial output, which in turn underscores the growing economic scenario of the region, all in a given period of say 10 years or so.

The corridor passes through a combination of well developed locations such as Visakhapatnam, Vijayawada, moderately developed areas like Kakinada, Rajahmundry and Machilipatnam and under developed industrial areas like Gudur, Nuziveedu and Ongole. These have varying natural resources, human skills, but are with or without quality physical and social infrastructure that could propel industrial growth.

“The growing link is the infrastructure, i.e., logistics, industrial and social, real estate, which is incapable of handling the envisaged industrial output and exports”.

Investment regions and industrial areas will be proposed along the stretch covering key places such as Rajahmundry, Kakinada, Nuziveedu, Vijayawada, Bhimavaram, Machilipatnam, Guntur, Ongole, Bapatla, Nellore, Gudur and Naidupeta. Besides, self-sustaining industrial townships with world-class infrastructure, road and rail connectivity for freight movement to and from ports and logistics hubs, domestic/international air connectivity, reliable power and quality social infrastructure have to be created to provide a globally competitive environment that is not only conducive to setting up busi¬nesses but also superior compared to the existing hubs.

“The industries and IT companies coming up would have the advantage of improved infrastructure as there would also be logistics hubs to facilitate warehousing and movement of goods. A similar advantage in terms of trained manpower would become available as knowledge hubs are also being planned in such regions on PPP basis,” said data.

 

Industrial Development in Vijayawada Need Strong Economic Corridor

Premium infrastructure and high-speed connectivity will offer immense opportunities for businesses and sectors that are likely to get a boost including steel, cement, food processing, IT, automobile, ready-made garments, petroleum, chemicals and petro¬chemicals complex, Real Estate Industry.

Significantly, the corridor assists potential investors in organizing, negotiating loans and to some projects even advances. Exten¬sion of credit facilitation is the star attraction of the project. With access to capital getting tighter, thanks to the global macroeconomic situation, prospective investors with mid and large-scale projects will be enthused with such an option.

In specific cases, it will also raise financing instruments like project development fund, viability gap fund and revolving fund that could be used for undertaking project development activities on a PPP model.

The corridor also facilitates, among other things, resources required for companies to commence operations. Over time, districts and villages along the stretch will attract foreign investment and attain sustainable development and emerge as a hub of social and economic development.

Evidently, implementation of the project requires huge investment and public and private sector participation is imperative. Development of infrastructure, power plants, ports, airports, special economic zones, industrial parks, agro-processing hubs, knowledge cities and integrated townships can be developed on a viable PPP model with participation from both the Central and state governments.

All this is expected to boost trade and commerce between South India and East Asia by enabling quicker movement of goods.

“Once implemented, the industrial corridors will result in world-class tolled road, high-speed rail link and centers along the corridor would develop as industrial clusters,” said Reddy of Infotech adding that the manufacturing hubs in and around Anantapur, Nellore and Chittoor that the corridor will create will be critical to the future growth of Seemandhra.

 “Notable among the benefits is the fact that these industrial corridors will provide employment for a majority of the local population.

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