Bengaluru, Dec 31 (IANS): The Central government has cleared the new industrial area at Tumakuru in Karnataka under the Chennai-Bengaluru industrial corridor project, state Industry Minister Jagadish Shettar said on Thursday.

"The Cabinet Committee on Economic Affairs (CCEA) on Wednesday cleared the Rs 1,702- crore Tumakuru industrial area, which has the potential to create 88,500 jobs," he said in a statement here.

Thanking Prime Minister Narendra Modi for clearing the project early, Shettar said the state's new industrial policy (2020-2025) would attract huge investments in diverse sectors and create thousands of jobs over the next 5 years.

"Under the Chennai-Bengaluru industrial corridor, the 815-acre Tumakuru industrial node will not only boost economic and employment opportunities, but also make Karnataka a part of the global value chain," he said.

The new industrial area will also attract foreign direct investment and create 17,700 jobs in service sector as part of the Chennai-Bengaluru industrial corridor that will promote the Central government's flagship 'Aatmanirbhar Bharat', he added.

"Our forward-looking industrial policy offers incentives and ease of doing business with access to land and skilled labour," Shettar said, adding that as a $250-billion economy, Karnataka has been an attractive investment destination to global investors in diverse sectors such as IT, biotechnology, aerospace and defence, electronics, automobiles, machine tools and heavy machinery.