Industrial corridors around Bangalore
April 25th, 2017
The influx of technology and global investment has initiated a new model of industrial growth in India that is supported by the development of industrial corridors. The industrial corridors planned by the Government of India will not only connect major cities, but will also be the main driver behind ‘Make-In-India’ by guaranteeing flawless connectivity. It would result in world-class tolled road, high-speed rail link and centres along the corridor would develop as industrial clusters, boosting the demand for warehousing and other real estate segments like commercial and residential.
The ‘Make-In-India campaign’ has plans to conceptualize five industrial and economic corridors that are at different stages of execution. These are:
- Delhi-Mumbai Industrial Corridor (DMIC)
- Bengaluru- Mumbai Economic Corridor (BMEC)
- Chennai-Bengaluru Industrial Corridor (CBIC)
- Visakhapatnam-Chennai Industrial Corridor (VCIC)
- Amritsar-Kolkata Industrial Corridor (AKIC)
Facilitating the growth of large scale industries inside the corridor and enhancing exports from the region will be eased out, thanks to The Chennai-Bengaluru Industrial Corridor (CBIC) project which focuses on textiles, electronics, and automobile to name a few. Corridors in the close vicinity of the industries help in cutting down the transportation costs, reducing stock cost, making faster deliveries to customers and enabling smooth access to the manufacturing production units for supplies. This project envisions the creation of world-class infrastructure to attract investments in the industrial, generate employment and promote economic growth. The thrust will be on sectors like manufacturing including automobile and machine tools, but other ancillary industries like micro, small and medium enterprises, and the IT sector would also be promoted. Commercial real estate will boom and bordering towns and cities will be developed.
The Bengaluru-Mumbai Economic Corridor, announced in previous budgets and welcomed by everyone as the need of the hour, will not only ease congestion in Bangalore but develop northern parts of Karnataka that have generous non-agricultural land. As a result, large parcels of land untapped for quality real estate, can be developed and complemented by key infrastructure initiatives in the area. This is a major opportunity for developers as it creates new markets across the corridor and would reveal great value due to the relatively low costs of land and development and the ease of licencing in the areas. The integrated townships created around the corridor will help improve the infrastructure. It will contain residential, commercial and institutional areas, with the requisite physical and social infrastructure facilities.
Housing for all will also gain good momentum through corridors such as these as development of low cost housing will be made easy not just within the industrial areas but in residential catchments that surround the area and the towns and urban settlements within reach.
The proposed industrial corridors promise to open the floodgates to new investment opportunities and immense potential for real estate infrastructure expansion in Bangalore itself. There is no denying this high-speed connectivity between Bangalore surrounding Cat A and Cat B cities offer prospects for developers across the board. Establishing an economic corridor, then, is a holistic strategy that improves and enhances investments in transport, energy, and telecommunications in the region. A highly efficient transport system means goods and people can move without excessive cost or delay. This will be a major propeller for the economic growth of the real estate sector in particular and the country in general.