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Delhi-Mumbai Industrial Corridor a mega infrastructure project of USD 90 billion

   

Delhi-Mumbai Industrial Corridor is a mega infrastructure project of USD 90 billion with the financial & technical aids from Japan, covering an overall length of 1483 KMs between the political capital and the business capital of India, i.e. Delhi and Mumbai.

The government plans to earmark Rs 3,500 crore every year for the next five years to set up the seven mega industrial towns that will come up on the proposed Delhi-Mumbai industrial corridor (DMIC).

These cities - or National Investment and Manufacturing Zones (NMIZs) - on the proposed 1,483-km DMIC project will run through seven states: Delhi, Uttar Pradesh, Haryana, Rajasthan, Gujarat, Madhya Pradesh and Maharashtra

The government will provide Rs 500 crore per year per industrial city to the fund for the next five years beginning 2012-13, as grant for the creation of capital assets for catalysing the development of these cities,

Last week, the Union Cabinet approved the National Manufacturing Policy that set the ground for creating mega industrial cities that would spin 100 million jobs over 15 years.

Another Rs.200 crore a year is likely to be set aside from the union budget, to be used by Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) to create infrastructure.

The resources will be parked in a corpus known as the DMIC Project Implementation Fund.

The fund will be established as a trust, empowered to raise long-term debt finance at attractive rates from institutions and also to raise tax-free bonds. It will be administered by Board of Trustees chaired by the secretary, department of industrial policy and promotions (DIPP), with representatives from the departments of economic affairs, expenditure, planning commission, and the DMICDC chief.

"The board of trustees will decide the optimal mix and choice of financial instruments along with suitable terms and conditions," the source said. The central government's contribution to the fund would be used as a revolving corpus.

A special purpose vehicle (SPV) would be created under the Companies Act for each industrial city node, tasked with dual responsibilities of the development authority and the municipal administration.

"The financial assistance from the Centre will be a mix of equity and debt. The SPV at each node would be empowered and given the development rights in delineated areas with adequate functional freedom," the source said.

Finally Government of India has announced establishing of the Multi-modal High Axle Load Dedicated Freight Corridor (DFC) between Delhi and Mumbai, covering an overall length of 1483 km and passing through the six States - U.P, NCR of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra, with end terminals at Dadri in the National Capital Region of Delhi and Jawaharlal Nehru Port near Mumbai. Distribution of length of the corridor indicates that Rajasthan (39%) and Gujarat (38%) together constitute 77% of the total length of the alignment of freight corridor, followed by Haryana and Maharashtra 10% each and Uttar Pradesh and National Capital Region of Delhi 1.5 % of total length each. This Dedicated Freight Corridor envisages a high-speed connectivity for High Axle Load Wagons (25 Tonne) of Double Stacked Container Trains supported by high power locomotives. The Delhi - Mumbai leg of the Golden Quadrilateral National Highway also runs almost parallel to the Freight Corridor. This corridor will be equipped with an array of infrastructure facilities such as power facilities, rail connectivity to ports en route etc. Approximately 180 million people, 14 percent of the population, will be affected by the corridor’s development.

   
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