Tamil Nadu which has a sound industrial base for the manufacturing industry
among southern states and a one thousand kilometer long coastline will miss out
on the central government coastal economic zone since Niti Ayog has chosen
Andhra Pradesh and Gujarat as the states in the East and West coast for setting
up these ventures.
Niti Ayog which is entrusted with preparing a detailed project report on
coastal economic zones has identified the two states for the central project
where investment to the tune of Rs five thousand crores will be pumped in over
a period of three years to tone up the infrastructure.
Andhra Pradesh has been bestowed with an exclusive industrial corridor from
Visakhapatnam to Chennai by the commerce and industries ministry two years ago.
Under the original proposal the corridor was to go up to Tuticorin covering the
entire state of Tamil Nadu. The centre however decided not to take up the
project and curtailed its length to Chennai.
A high level team from the Asian development bank will prepare a detailed
project report for the coastal economic zones in Gujarat and Andhra Pradesh.
The central government is firming up fiscal incentives that may be offered
to companies which commit to create certain number of jobs. Centre is also keen
to provide massive investment in the two zones for creation of additional
infrastructure and a unified industrial tariff regime.
These zones are being planned to provide opportunities to large number of multinational
companies which are scouting for locations that could offer low cost labour
with world class infrastructure, Vietnam, Bangladesh and Cambodia are offering
such facilities to woo the investors.