VISAKHAPATNAM: The Union budget tabled in parliament on Tuesday announced financial assistance for Kopparthy (Kadapa) node in the Visakhapatnam-Chennai Industrial Corridor (VCIC) and Orvakal (Kurnool) node in the Hyderabad-Bengaluru Industrial Corridor.
The Centre’s funding is expected to bring significant momentum to these projects. For example, despite being initiated several years ago, progress on the VCIC has been slow, with land acquisition for the industrial node in Chittoor still ongoing.
The VCIC project aims to develop three industrial nodes in Nakkapalli (Anakapalli district), Chittoor, and Kadapa.The impact of the VCIC will be an increased contribution of the manufacturing sector to the state’s GDP, trade, and employment.
The VCIC is expected to attract investments amounting to ₹1 lakh crore from various industries and create jobs for about 5.5 lakh people.
At the heart of the VCIC lies a north-south transport corridor extending over 800 kilometres along the coast, connecting a series of economic nodes where industries will be located.
The project covers almost all parts of the state, which can transform the state into an industrial hub.
A network of six seaports and six airports integrates trade, commerce, and industry in the Visakhapatnam-Chennai Industrial Corridor with the Asia-Pacific region.
National highway 16 provides the transport backbone for the VCIC. The connectivity links of the project brings business and commercial centres of the country within easy reach of the VCIC.
The National Industrial Corridor Development Corporation (NICDIT) approved the development of Visakhapatnam and Chittoor as priority nodes in the first phase of the VCIC in 2019.
The Andhra Pradesh govt has also requested the inclusion of Kadapa (Kopparthy) as an additional node.
Regarding the progress, the Andhra Pradesh govt has proposed 3,196 acres for the development of phase-II of the Nakkapalli Cluster under the Vizag node.
However, the land initially identified for the project is no longer being pursued by state govt. A similar situation exists with the Chittoor node.
The Visakhapatnam-Chennai Industrial Corridor region boasts over a dozen thriving industrial townships, including four manufacturing hubs aligned with it.
Additionally, five greenfield industrial nodes are under development at Visakhapatnam, Chittoor/Tirupati, Machilipatnam, Donakonda, and Kopparthy.
The total land area envisaged for these five nodes is over 50,000 acres. The first phase of work in some of these nodes is in various stages of execution.
While Andhra Pradesh’s economic growth has matched the national average until the bifurcation, the division has posed significant challenges to its growth.
The bifurcation of Andhra Pradesh has largely excluded industrial activity (including information technology activities) around Hyderabad. The VCIC is expected to bridge this gap.
