10/04/2013

Times of India Publications

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Govt reshapes Del-Mum Corridor Does Not Want Pvt Players To Net Profit From Funds Provided By Centre
Sidhartha | TNN

New Delhi: The commerce and industry ministry is revamping the Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) to ensure that private players do not profit from funds provided by the government.A cabinet note floated by the commerce and industry ministry has proposed that DMICDC be converted into an implementation agency for what is Indias largest-ever infrastructure project and should not be the holding company that floats subsidiaries or special purpose vehicles to set up infrastructure such as power projects.Instead,government will directly provide funds to the special purpose vehicles.Once the project is bid out to private players,the gains would go back to the government,which may be reinvested. The entity is executing the Rs 4.23 lakh crore project that involves development of a global manufacturing and trading hub comprising nine mega industrial zones of about 200-250 sq km,high speed freight line,three ports,six airports,a six-lane intersection-free expressway connecting Mumbai and Delhi and a 4,000 MW power plant.While the Centre holds a 49% stake in DMICDC,IL&FS holds another 41%,while IDFC has 10%. Though officials said that the move was initiated four months ago,it coincides with reported attempts by RIL to acquire a significant stake in IL&FS.RIL is said to be in talks to acquire the 24% stake held by Japans Orix Corporation in IL&FS.It had recently roped in IL&FS as a copromoter for the Jhajjar (Haryana ) model industrial township,a spin off from the Reliance Haryana SEZ.Officials did say that the change in the structure was prompted by the possibility of the government being criticized for putting in money,getting clearances and getting the mega project up and running and then sharing the gains with the private sector. Given the scale,the cost of preparing and development of project is alone estimated to be around Rs 10,000 crore.Under the present
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10/04/2013

Times of India Publications

scheme,the government will provide 50% funding by way of grants,while the rest would come from Japan through untied debt.Government will have to provide around Rs 5,000 crore,based on present estimates,to prepare the master plan,undertake feasibility studies and keep the project pipeline ready. The project covering 1,483 km is dependent on Japanese loans and investment by firms and via Japan depository receipts issued by Indian companies.In the present structure,the DMICDC has to bear the interest burden on Japanese debt that will be routed through IIFC.Under the new plan,government plans to deploy funds via various routes. INVESTMENT REGIONS/AREAS

Dadri-Noida | Ghaziabad Investment Region in UP for general manufacturing investment Manesar-Bawal | Investment Region in Haryana for auto component Khushkhera-Bhiwadi | Neemrana Investment Region in Rajasthan for general manufacturing & auto component Pitampura-Dhar | Mhow Investment Region in Madhya Pradesh Bharuch-Dahej | Investment Region in Gujarat for petrochem Igatpuri-Nashik-Sinnar | Investment Region in Maharashtra for general manufacturing Meerut-Muzaffarnagar | Industrial Area in UP for engineering/ manufacturing Faridabad-Palwal | Industrial Area in Haryana for engineering & manufacturing Jaipur-Dausa | Industrial Area in Rajasthan Neemuch-Nayagaon | Industrial Area in Madhya Prdaesh Industrial Area with Greenfield Port at Alewadi/Dighi in Maharashtra
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Times of India Publications

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