National corridor body plan shelved

The Centre has decided to shelve its plan to set up a National Industrial Corridor Authority (NICA).

Why?

The Authority has been put on the back burner due to the delay foreseen by the Prime Minister's Office and the Cabinet Secretariat in getting Parliamentary approval for it to be conferred ''statutory'' status on the lines of the National Highways Authority of India.

About NICA:

• It was the proposed nodal body to oversee work relating to all national ''industrial corridors'', in the face of hurdles in implementation.
• The plan to set up NICA was announced by Finance Minister Arun Jaitley in his maiden Budget speech in July 2014.
• The centre had planned to go in for a Constitutional amendment and ensure passage of 'NICA Act' in Parliament. The Constitutional amendment was to remove doubts on whether the topic ?industrial corridor? falls under the ?State List? or ?Union List? of Constitution.
• The aim was to grant NICA overarching powers including primacy over State bodies on all aspects of ''industrial corridors'' thus allowing it comprehensive operational freedom.

What next?

• To fill the gap, the government has decided to make the Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) the coordinating body for corridors, to move ahead with proposals relating to corridors in the works.
• As per the new plan, DMICDC head will have the powers to approve proposals relating to corridors. These will then be forwarded to the DMIC Trust for final clearance.
• The Trust — currently managed by the Secretaries of Department of Economic Affairs, Department of Industrial Policy and Promotion and that of NITI Aayog — could be expanded to include the Secretaries of Shipping, Road Transport and Urban Development (for including ''smart cities'' in these corridors).

Why make DMICDC the coordinating agency?

Making DMICDC the coordinating agency only needs a Cabinet nod and is easier than obtaining Parliamentary approval for NICA.