Lok Sabha Question No. 4121 (UNSTARRED), answered on 2025-03-25
Subject: New Industrial Corridors
Ministry: COMMERCE AND INDUSTRY
Asked by: Smt. Pratima Mondal

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 4121.

TO BE ANSWERED ON TUESDAY, THE 25 TH  MARCH, 2025.

## NEW INDUSTRIAL CORRIDORS

## 4121.  SMT. PRATIMA MONDAL:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य एवं उद्योग मंत्री

- (a) the manner in which the Ministry plan to align industrial policies with India's $5 trillion economy goal, ensuring the manufacturing sector contributes significantly to GDP growth;
- (b) the extent to which is the Government incentivizing industrial decarbonization, ensuring that large-scale manufacturing units reduce carbon emissions; and
- (c) the details of policies are being implemented to develop new industrial corridors and Special Economic Zones (SEZs), ensuring robust infrastructure for heavy industries?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a): The industrial policy implemented by the Government encompasses ongoing reforms  and  initiatives  aimed  at  promoting  the  growth  of  the  manufacturing sector  focusing  on  infrastructure  development,  ease  of  doing  business, nurturing  innovation and entrepreneurship and promoting investments, aligned  with  India's $5 trillion economy goal. These efforts aim to ensure that the  manufacturing  sector  serves  as  a  key  driver  of  economic  growth  and development. The 'Make in India' initiative has been launched to make India a hub  for  manufacturing,  design,  and  innovation.  Presently,  'Make  in  India' focuses on 27 sectors including 15 manufacturing sectors, implemented across various Ministries and Departments and State Governments. Further, keeping in  view  India's  vision  of  becoming  'Aatmanirbhar'  and  to  enhance  India's manufacturing  capabilities  and  exports,  Production  Linked  Incentive  (PLI) schemes have been launched for 14 key sectors with an outlay of ₹1.97 lakh crore.  These  include  mobile  and  specified  electronic  components,  drug intermediaries & active pharmaceutical ingredients, medical devices, automobiles  and  auto  components,  pharmaceuticals  drugs,  specialty steel, telecom & networking products, electronic/technology products, white goods (ACs  and  LEDs),  food  products,  textile  products,  high  efficiency  solar  PV modules,  advanced  chemistry  cell  (ACC)  battery,  and  drones  and  drone

components.  These  schemes  have the potential to significantly boost production, increase manufacturing output and contribute to faster economic growth in future.

Other initiatives include Start-up India, National Single Window System, GISenabled Land Bank, Foreign Direct Investment (FDI) policy reforms, National Industrial Corridor Development Programme (NICDP), PM Gati Shakti National Master  Plan  for  integrated  planning  of  multi-modal  infrastructure,  Project Monitoring Group to remove bottlenecks in setting up of major infrastructure projects, setting up of industrial parks, interventions to improve ease of doing business, measures for reduction in compliance burden, introduction of Goods and Services Tax, reduction in the corporate tax rate, policy measures to boost domestic manufacturing through public procurement orders, Phased Manufacturing Programme and Quality Control Orders, to name major ones.

The Government reviews ongoing initiatives and policies from time to time in consultation  with  stakeholders,  to  ensure  effectiveness  and  alignment  with evolving  economic  conditions,  to  promote  the  growth  of  the  manufacturing sector and propel India towards its $5 trillion economy goal.

- (b): India, at the 26 th  session of the Conference of the Parties to the United Nations Framework  Convention on Climate  Change  (UNFCCC  (COP  26)) in November 2021, announced its target to achieve net zero emissions by 2070. In  pursuance  thereof,  India  submitted  its  Long-Term  Low  Greenhouse  Gas Emission  Development  Strategies  (LT-LEDS)  to  the  UNFCCC  in  November 2022, which provides a framework involving seven key strategic transitions for achieving net- zero emissions by 2070. One of the seven transitions focuses on industrial decarbonization by promoting economy-wide decoupling of growth from  emissions  and  development  of  an  efficient,  innovative  low  emission industrial system.

The  key  elements  of  a  Long-Term  Low-Carbon  Growth  Strategy  for  the Industrial sector include: (i) Improving energy efficiency; (ii) Process and fuel switching, and electrification in manufacturing; (iii) Enhancing material efficiency  and  recycling;  (iv)  Promoting  green  hydrogen  technology  and infrastructure; (v) Exploring low carbon options in hard-to-abate sectors and (vi) Low-carbon and Sustainable development of MSMEs.

The Government is actively incentivizing industrial decarbonization through a range of targeted policies and initiatives across various sectors, ensuring that large-scale manufacturing units reduce carbon emissions. Current policies and schemes already in place for incentivizing industrial decarbonization inter-alia include  National  Missions  for  Enhanced  Energy  Efficiency  and  Sustainable Habitat, Standards and Labelling Scheme, and the Energy Efficiency Financing Platform;  Fuel  switching  through  promotion  of  natural  gas  and  the  National Policy on Bio- Fuels; Material efficiency through policies on resource efficiency, plastic  and  e-  waste,  and  steel  recycling;  Green  hydrogen  technology  and infrastructure  promotion;  Decarbonisation  of  hard-to-abate  sectors  such  as steel  and  cement  through  R&D,  National  Solar  Mission  and  National  Green Hydrogen Mission.

Further, industrial decarbonization is also being actively incentivized through various initiatives under the National Industrial Corridor Development Programme  including  the  Green  Industrial  Corridor  Development  Policy, promoting adoption of renewable energy by industrial units in planned corridors, promoting electric vehicle (EV) adoption by mandating charging infrastructure in  industrial units and common parking areas, promoting water conservation and wastewater recycling, enhancing energy efficiency through deployment of amorphous core transformers and smart LED lighting. Further, sustainability mandates in  infrastructure,  including  environmental  monitoring  systems  and ICT-driven smart city solutions ensure adherence  to  sustainability  standards and  reduce  the  carbon  footprint  of  large-scale manufacturing.

- (c): The National Industrial Corridor Development Programme (NICDP) is a central sector scheme intended to create greenfield industrial smart cities/clusters of global standards. Under the Industrial Corridor Programme, smart cities/nodes are  developed  with  sustainable  infrastructure  and  providing  'plug  and  play' infrastructure at the plot level. The objectives of the Programme are as follows:
- i. Develop greenfield smart industrial cities.
- ii. 'Plug-and-play'  and  'walk-to-work'  -  minimizing  gestation  period before commissioning.
- iii. Leveraging the multi-modal connectivity infrastructure that has developed in the last decade. e.g., national highways, dedicated freight corridor, ports and airports.
- iv. Use PM-GatiShakti to arrive at optimal locations for these cities thereby ensuring minimum logistic cost.
- v. Holistic and multi-sectoral manufacturing hubs

The NICDP aims to promote industrial growth in line with 'Aatmanirbhar Bharat', drive infrastructure development, attract investments, boost employment, foster sustainability  and  technological  innovation,  enable  urbanization  and  smart governance,  stimulate  regional  economic  development,  and  enhance  skill development. Till date, the Government of India has approved the development of 20 projects under NICDP.

Special  Economic Zones (SEZs) set up under the SEZ Act, 2005 and SEZ Rules,  2006  are  primarily  private  investment-driven  initiatives  that  may  be established  either  jointly  or  severally  by  the  Central  Government,  State Governments or any person. The proposals for setting up SEZs are approved by  the  Board  of  Approval  (BoA)  on  the  recommendations  of  the  concerned State Government. However, no funds/subsidies are sanctioned by the Central Government for setting up the SEZ.

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