How To Improve The Economy

Transcription

1 CHENNAI BANGALORE INDUSTRIAL CORRIDOR BCIC June 2014

2 Economic Corridors Advantages Attract Investment Generate Economic Activity Within Contiguous Regions- on the foundation of efficient transportation system. Improves Investment in transport, energy and telecommunications. Economic Growth-Regional Development-Poverty Reduction. Impact on competitiveness Unlock development potential of region Efficient delivery with lower distribution costs Improved Infrastructure - High Quality real estate Lower communication costs better access Lower inventory costs 2

3 Economic Corridors Most comprehensive Economic Corrodor integrates infrastructure development with trade, investment and other economic potential of a set of specific geographical areas while at same time addressing Social environmental and other potentially adverse impacts of increased connectivity. 3

4 Economic Corridors -International examples The Greater Mekong Subregion (GMS) Transport Sector Strategy ( ) identified nine road corridors that will form the subregion s network of transport links. They form the base for the development of economic corridors. The GMS comprises six countires - Cambodia, Lao People s Democratic Republic, Myanmar, Thailand, and Viet Nam, as well as Yunnan Province and Guangxi Zhuang Autonomous Region of the People s Republic of China (PRC). The GMS countries formed an Economic Corridors Forum (ECF) in 2008 to bolster efforts in transforming GMS transport corridors into economic corridors. It is designed to enhance collaboration among areas along the corridors and among GMS sector working groups, and will act as a single body focusing on economic corridor development. This will help improve interaction between the public and private sectors, and between central and local governments. 4

5 Economic Coridors - Advantages 40% gain in regional trade Improved transit times Lower trade service costs Physical infrastructure a must for industrial activity and trade to take place 5

6 Infrastructure Driver for Growth Developed economies created World class infra Viz, - Singapore created best seaports. - Japan created good road and rail network. 20% of GDP is spent towards building good infra by China - fastest growing economic power in the world. Infrastructure quality by country India Indonesia South Africa Japan Singapore Switzerland Infrastructure key factor for better trade and commerce Better Infrastructure must for propelling economic growth Creation of Sound infrastructure is Must for economic development. Comparison of India & China's infrastructure spending INDIA CHINA Remarks $bn % of GDP $bn % of GDP Railways & Urban Transport times more Roads times more Ports times more Airports times more Total Source: Planning Commission, CEIC, Morgan Stanley Research Note: In the scales (1)=poorly developed and inefficient and (7)=among the best in the world Source: World Economic Forum Global Competitiveness Report,

7 GoI Initiative on Infra development DMIC GOI in collaboration with Japan conceived Delhi Mumbai industrial corridor projects.(90 Bn USD) Covers a distance of 1483 Kms passing thru Six states, UP, NCR, Haryana, Rajasthan, Gujarat and Maharashtra Corridor connected well by Road and Rail speed upto 100 kmph, provision for bullet trains It will comprise seven new township, nine industrial parks, three ports, six airports. All states likely to reap better economic benefits from this initiatives. 7

8 DMIC Nine Mega Industrial zones of about sq. km., high speed freight line, three ports, and six airports, a six-lane intersection-free expressway connecting Mumbai & Delhi and a 4000 MW power plant. Several industrial estates, clusters and industrial hubs are planned to be developed along this corridor to attract more foreign investment. Funds for the projects are from the Indian government, Japanese loans, investment by Japanese firms and through Japan depository receipts issued by Indian companies. This high-speed connectivity between Delhi and Mumbai offers immense opportunities for development of an Industrial corridor along the alignment of the connecting infrastructure. A band of 150 km (Influence region) has been chosen on both sides of the Freight corridor to be developed as the Delhi-Mumbai Industrial Corridor. About 45% of country s registered factories (129,704), catering to an employment of 3.36 Million jobs, are located in DMIC states. Moreover, about Million registered small scale industries, constituting 46% of overall country, are located in DMIC states. About 52% of registered factories -Maharashtra and Gujarat states, indicating the extent of industrialization in these states. In terms of Gross Industrial Output and Export trends, DMIC states together constitute 56% of country s industrial output (INR 12,874 billion) and 62% of country s total exports (INR 4564 billion). Maharashtra and Gujarat together contribute 61% of gross industrial output and 72% of exports amongst the DMIC states. 8

9 Chennai Bangalore: Ideal for Industrial Corridor Why Chennai Bangalore region? Good Airway infrastructure - International and Domestic ENNORE Better Road and Rail connectivity BLR Chennai South India preferred location for MNC and foreign companies: IT & Research centres - Bangalore Auto, ancillary, Electronics - Chennai South India contributes more than 50% of India s automobile exports Proactive and Progressive Governments Karnataka & Tamil Nadu BANGALORE Airports CHENNAI CHENNAI Ford Hyundai BMW Nissan Renault Seaports South India - Ideal location for investors 9

10 Industrial Corridor Key Factors 10 - Road Drivers for Industrial development - Human Development - Railway - Electricity - Water - Ports - Law & Order - Health & Education - Housing / Township - Industrial Corridor 10

11 Idea of South India Industrial Corridor : By considering not only the road construction but to build multi functions as an Industrial Corridor. In other word, we request to create environment for companies to concentrate their operation by making attractive industrial connection. Bangalore Chennai

12 Infrastructure development in line with industry growth Availability of Power, Water and other infrastructure ( plug and play ) Better connectivity to national highways Development of Knowledge Hubs Skill training institute, Engineering Colleges, Medical Colleges, World Class institutions Integrated townships consisting of residential, commercial, institutional with requisite physical and social infrastructure facilities Technology development with world class R&D centers

13 Industry Development in Karnataka Auto parks to be linked to National Highways through 4 6 lane roads for logistics movement Industrial Clusters / Estates to be interlinked with exclusive road connectivity ( Bidadi, Whitefield, Peenya, Jigani ) City access roads to be developed avoid traffic congestion, ease traffic movement Dedicated elevated road to industrial parks / towns Access to National Highways which lead to ports will be the key for import/export of product and components. Extending the PRIDe Corridor from Chennai Bangalore to Chitradurga Peninsular Regional Industrial Development Corridor Key Transport Corridor for the Peninsular Region of India.

14 Thailand..developing hub of Asia Economy 2010 (Bln US$) Total Trade Volume 380 Export 195 Import 185 Infrastructure Highway 62,000km Waterways 4,000km Major Ports 7 M A R K E T I N D U S T R Y I N F R A Airports 109 (paved runways - 65)

15 Industrial Corridors Tokaido Industrial Corridor - Japan 515 km High Speed Rail on Tokaido Industrial Corridor (1964) Connected three major areas Tokyo, Osaka and Nagoya Drastically reduced travel time Has massive transport infrastructures including ports, airports, highways and especially a HSR network (Shinkansen) South India Industrial Corridor Develop inter-city HSR connectivity Expedite Bangalore Chennai Expressway Ease the traffic congestion entry to Chennai, Bangalore HSR High Speed Rail

16 South India as future Industrial centre PRIDe Corridor Chennai Bangalore Development of Bangalore peripheral ring road Development of new industrial clusters Potential to become pride of India Early completion of Chennai Outer Ring Road Development of new industrial clusters Hosur, Krishnagiri, Ranipet

17 Industrial Corridor - Advantages Can attract more FDI Can bring world class technology Economies of scale Better Connectivity Low logistics cost and low inventory Bangalore Chennai Supply chain integration Cost Advantage Skilled Manpower Optimum cost Enhance Export competitiveness 17

18 Merits of PPP Historically, investment in infrastructure has been low in India. Only PPP models can bridge the gap. As public sector resources are scarce, Govt is aggressively promoting public private partnership in infrastructure PPP can be made successful with appropriate project structuring Focus of State Government ( Karnataka & Tamil Nadu ) New Infrastructure policy 2007 declared that PPP cases will be prioritized in new infrastructure projects PPP projects have seen success in South India > Success stories include Hyderabad and Bangalore Airport and NHAI projects

19 Expectation from State Goverments. Collaboration - Strong Policy - Infra Corridor Chennai Bangalore - Investment PPP - Technology - Innovation Working together Industrial Cluster, Big markets.bigger economy

20 Thank You