DMIC snippets

The UP government is all set to sign a state support agreement (SSA) with the Centre for the multi-crore Delhi-Mumbai Industrial Corridor (DMIC) project during the three-day international industry summit in Agra beginning January 27.
The agreement was likely to be inked on January 28 when UP chief minister Akhilesh Yadav would chair a session projecting UP as an ‘industry destination' during the summit. UP's infrastructure and industrial development commissioner Anil Kumar Gupta confirmed that a draft of the agreement would soon be readied to be signed between the state government and the Union ministry of the commerce and industry. He said that the state government would subsequently sign a shareholding agreement with the Centre to take the project forward.
The project envisages setting up of seven investment and 13 industrial regions between Jawaharlal Nehru Port in Mumbai and Dadri in Greater Noida, will pass through two investment regions in UP – Greater Noida and Meerut-Muzzaffarnagar.
This is apart from a dedicated freight corridor of 150 to 200 km on both sides of the investment region. The project becomes crucial for UP because the proposed east-west corridor merges at Khurja which lies in Uttar Pradesh. The corridor will help the farmers, especially of the east UP, to ship their produce to places as far as Mumbai.
The project also proposes the development of Bodaki railway station, Dadri-Vallabhgarh railway station, and Greater Noida-Faridabad expressway, besides a logistic park/township and an automart. The authority has also identified setting up of a power plant in the region as an important feature.
The GNDA and UPSIDC had been asked to identify a site for setting up a hi-tech integrated industrial township in the region.
Gupta said that the state government has already earmarked around 2,500 acres of land for the project. Of that, 500 acres will be allotted in Greater Noida alone.
According to the project blueprint, the Centre will invest around Rs.3000 crore in the region lying in UP. This will include setting up of industries, including Food, IT, electronics and auto industries. In all, the project is expected to create 12 lakh jobs.

Dholera development snippets

Gujarat has sought Rs 11,000 crore from Japan for implementing various projects related to the Delhi-Mumbai Industrial Corridor (DMIC). During a meeting held in mid-August in Gandhinagar between top officials of the state government, the Centre and representatives of Japan government agencies, Gujarat Infrastructure Development Board (GIDB) proposed a number of new projects for Dholera.
The development comes soon after Japan’s offer of rupee loan of $4.5 billion (about Rs 25,110 crore) for corridor-related projects. “Gujarat has pioneer’s advantage as it’s moving faster than other states,” said a senior official from the Government of India. “Dholera plan is in the fast-forward mode with the state opting for town-planning route for planning.”
Secretary of department of industrial policy and promotion Saurabh Chandra said that Japan International Cooperation Agency (JICA) executives are holding meetings with all states that have a stake in DMIC. The meeting held in Gandhinagar was a part of that series.
“The proposals put forward by the state government were linked to connectivity and water supply to Dholera,” the official said adding, “The money sought for implementing these projects is in the range of $2 billion.”
Apart from metro rail connectivity and a major expressway connecting Ahmedabad to Bhavnagar via Dholera, elevated roads around Dholera were on the list. Elevated roads have been suggested by infrastructure experts to counter the problem of saline water creeping in, the official said.

Delhi - Mumbai Industrial Corridor update

The Union cabinet has cleared a proposal to allow Japan bank for international cooperation (JBIC) to pick up 26 per cent stake in Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC). Union government will have 49 per cent stake while state owned financial institution would hold about 25 per cent in the project. The project when completed over next 20 years is billed to be $ 100 billion venture.
No financial implications will be involved after revised equity structure on Indian government.
JBIC equity stake will enable the DMIC to leverage assistance and cooperation from Japanese government.
Long term financing institutions in Japan like pension funds have limited experience in India and 26 per cent equity would give them comfort level and a feeling of participation in the project. This would open up possibilities for long term infrastructure lending at lower rates.
Delhi Mumbai Industrial Corridor (DMIC) is being developed as a global manufacturing and investment destination utilising the high capacity 1483 km long western dedicated railway freight corridor, as the backbone.
As approved by cabinet in August 2007, DMICDC was incorporated on January, 2008 with authorized equity base of Rs.10 Crore (49 per cent equity participation by Indian government, 41 per cent by IL&FS and 10 per cent by one DFC) for developing projects, coordinating their implementation and raising finances.