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NIMZ Needs 10K Cr

Bhubaneswar: Over Rs.10,000 crore is required to develop infrastructure of the National Investment and Manufacturing Zone (NIMZ)—a a mega investment region  in Kalinga Nagar in Jajpur district

The NIMZ is among three such projects approved by Department for Promotion of Industry and Internal Trade (DPIIT) under the Ministry of Commerce and Industries.

The NIMZ has an investment potential of Rs.1,60,000 crore and envisages employment opportunities– both direct and indirect- for nearly one lakh persons.

It has been developed over 40,000 acres with over 23,000 acres of processing area and offers excellent opportunities for the downstream and ancillary industries with raw material supplies, sheet metal works, auto parts etc.

The State being rich in iron ore, a steel cluster is envisaged in the region and Rs 10,627 crore is needed for the development of both internal and external infrastructure.

Accordingly, State Government has requested the Union Government to provide grant for creation of both internal and external infrastructure as approved by DPIIT in its final approval, said sources.

The State Government has also requested DPIIT to explore to change NIMZ Policy on provision of grant for creation of various internal infrastructure and other statutory compliance studies as well as looking at the huge potential of NIMZ Kalinga Nagar.

This massive project requires more funding and as of now only cost of master planning is being provided by DPIIT.

Under this backdrop, change in NIMZ Policy is required for overall development of NIMZs across the country, the sources said.

Similarly, the State Government has requested the Centre to provide a special grant of Rs.3000 crore to develop Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) at Paradip.

While the market sentiment is subdued due to COVID-19, the public-private partnership (PPP) initiative, through which PCPIR Paradip was to be executed through Viable Gap Funding (VGF) programme, seems difficult.

The Ministry of Chemicals and Fertilizers (MoCF) has been promoting the PCPIR at Paradip under VGF mode under PPP limiting the provision to an extent of Rs.1000 crore.

However as market sentiments are subdued at present for PPP, it has been requested by the State Government to provide assistance in shape of grant instead of VGF.

PCPIR, Paradip spread over 71,000 acre requires huge infrastructure development to spur massive economic and industrial activities.

Both NIMZ and PCPIR are massive projects and granting environmental clearances through normal process will require lot of time and delay the project implementation.

Accordingly, a simpler green channel approach is needed for granting environmental clearances and steps are needed to be taken up by DPIIT in consultation with Ministry of Environment, Forest and Climate Change, pointed out State Government in its request to the Union Government, said official sources.