Cabinet note moved on $90 billion DMIC project

The Commerce and Industry Ministry has moved the Cabinet note for the $90 billion Delhi-Mumbai Industrial Corridor (DMIC) project for the approval of Union Council of Ministers.

The project expected to get the nod of the Union Cabinet within a fortnight. The inter-Ministerial consultations have been completed.

The project, being implemented in collaboration with Japan, was conceived some five years ago and envisages setting up of industrial corridor along the Delhi-Mumbai stretch. It will comprise seven new cities, nine industrial parks, three ports, six airports and a 1,483 km high-speed rail and road line will be developed as a trading hub. The project, spanning six States, will seek to create a business model out of urbanisation. The States covered by the project include Uttar Pradesh, Haryana, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh.

The new cities would come up along the proposed Delhi-Mumbai Dedicated Rail Freight Corridor. The Government has also completed the exercise for preparation of the perspective plan for the overall DMIC region. The cost of the project will depend on the cost of land and infrastructure development, a note by the Department of Industrial Policy and Promotion (DIPP) says.

The project aims to create a strong economic base with a globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance foreign investment, create employment opportunities, enhance exports and attain sustainable development.

The government has 49 per cent stake in the DMIC project, while Infrastructure Leasing and Financial Services has 41 per cent and Infrastructure Development Finance Company 10 per cent. The industrial corridor has proposed a revolving fund of Rs.18,500 crore to finance trunk infrastructure such as sewage disposal and roads, with the government providing 35-40 per cent of the financing.

The proposed new cities will get Rs.2,500 crore while Rs.1,000 crore will be available for planning and project development. “The new national manufacturing policy and the DMIC project will give a big boost to infrastructure and generate millions of jobs for the youth in rural and urban areas,” Mr. Sharma said.