The Union Cabinet is expected to grant its approval for a proposal to establish a National Industrial Corridor Authority (NICA) for fulfilling a promise made by Finance Minister Arun Jaitley.
- With a corpus of around Rs 18,500 crore, the authority will supervise the implementation and coordination among the five industrial corridors in the works.
Background:
In his Budget speech, 2014-15, Mr. Jaitley had said the proposed NICA will be headquartered in Pune and coordinate the development of the industrial corridors. However, the proposal was not taken up by the cabinet.
Why we need NICA?
Bringing all the corridors under the ambit of an Authority (NICA) — on the lines of the National Highways Authority of India — is aimed at providing certainty to investors as well as to multilateral agencies like Japan International Cooperation Agency (JICA) and JBIC (which are supporting DMIC and CBIC) and the Asian Development Bank (which has completed a conceptual development plan for VCIC).
Significance of NICA:
The authority will effectively monitor the development of these industrial corridors. The corridors, with smart cities linked to transport connectivity, will be the cornerstone of the strategy to drive India’s growth in manufacturing and urbanization.
Way ahead:
The government was earlier considering a proposal to bring into force a NICA Act on the lines of the NHAI Act. Since that move would need Parliament approval and therefore, is more time-consuming than giving a Cabinet approval to the NICA, NICA Bill has also been deferred for the time being.
Please note that DIPP is the nodal agency at the Centre for Industrial Corridors.
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