TLI Staff
New Delhi: As global MNCs look to shift their factories from China, Road Transport and Highways Minister Nitin Gadkari hopes India could be attractive alternate manufacturing destination by ensuring lower logistics, power and capital costs.
Speaking to entrepreneurs through video conference, Gadkari said that many countries of the world are now hesitant to buy goods from China and hence India could seize the opportunity.
The Minister cited the recent offer made by Japan to their companies for moving their units from China to back home. Suggesting post-Covid trade scenario, he noted that America too was keen to reduce its imports from China.
Gadkari urged entrepreneurs to make most of the emerging situation and work towards substituting a large chunk of imports into the country.
“The present crisis could be seen as blessing in disguise. We have to now work with our full strength to win the war. The first thing we have to do is to increase our exports. For this, first of all power cost, then logistics, capital cost and other costs related to production have to be reduced. One way of reducing it is by raising our volume. I feel that our cost should come down without compromising with the quality,” the Minister said.
He stated that various mega highway projects are in pipeline and in case of 7 projects works have already started. The Minister said that the new highway project connecting Delhi and Mumbai would reduce the distance by 220 km and can be covered in 12 hours by car.
Gadkari said that land alongside this new highway is relatively cheaper as it passes through backward and tribal areas of Rajasthan, Haryana, Maharashtra, Gujarat and Madhya Pradesh.
“Had this highway passed through Ahmedabad, Surat, Vadodara and other cities close by then the land acquisition cost could have been very high; because of the highways passing through backward and tribal areas we have been able to save Rs 16,000 crore on land cost alone,” Gadkari said.
He advised entrepreneurs to plan investment along the highways as land was cheaper. He said national Highways Authority of India (NHAI) could be approached with proposals to set up industrial clusters.
Along the highways, there is plan to build smart villages which would decongest cities.