During the visit of the Prime Minister of Japan to India in December, 2011, the two Prime Ministers stressed the importance of infrastructure development in the areas between Chennai and Bengaluru and directed to operationalize the modalities for the preparation of the Comprehensive Integrated Master Plan for development of Chennai-Bengaluru Industrial Corridor (CBIC).The corridor between Chennai-Bengaluru-Chitradurga (around 560 Km) would have an influence area spread across the States of Karnataka, Andhra Pradesh and Tamil Nadu. The strategy to develop CBIC is part of the plan to achieve accelerated development, regional industry agglomeration in the states of Tamil Nadu, Karnataka and Andhra Pradesh and to facilitate development of a well-planned and efficient industrial base by providing smooth access to the industrial production units, decreased transportation logistics costs along with an improved delivery time and reduction in inventory cost and ensure increased private investments in manufacturing and industrial activity in the three states.
Japan International Cooperation Agency (JICA) Study Team undertook the Preliminary Study for Comprehensive Integrated Master Plan for Chennai- Bengaluru Industrial Corridor (CBIC) and a total 25 priority projects across various sectors aimed at removing infrastructural bottlenecks were identified in their report. Following three nodes were taken up for Master Planning under JICA assistance:-
- Tumkur (Karnataka)
- Ponneri ( Tamil Nadu)
- Krishnapatnam ( Andhra Pradesh)
The report of master planning of above 3 industrial nodes submitted by JICA has been accepted as final and State Governments have been directed to initiate the process of notification of master plan of these nodes. It was also decided that on account of some more projects, the present list of identified 25 priority projects has been revised by adding some more projects.
Central Govt. through DMIDC has been in active consultation with state Govt. for finalisation of Share Holder Agreement (SHA) and State Support Agreement (SSA). DMICDC has also been engaged as Nodal agency for expediting environmental impact assessment study and also for carrying out detailed engineering plan for the identified 3 Nodes in CBIC. CBIC project has reached implementation stage. The formation of SPV has been started in the CBIC project. Government of Japan has been asked to indicate their financing support for this project.