Delhi-Mumbai industrial corridor needs Rs17,500-crore initial funding for developing nodes
21 May 2011
The seven futuristic cities being planned along the Delhi-Mumbai Industrial Corridor would require initial funding of Rs17,500 crore from the government. According to the Department of Industrial Policy and Promotion, each of the seven nodes would require Rs2,500 crore initial funding from the government.
The seven cities or 'nodes' are intended to be India's answer to China's growing manufacturing prowess. Reports quoting an unnamed government official said the matter is yet to be finalised. Once it is finalised, the note for the initial funding would be placed before the union cabinet.
The 1,500 km-long Delhi-Mumbai Industrial Corridor would extend across UP, Haryana, Rajasthan, MP, Gujarat and Maharashtra.
According to the note, the envisaged industrial cities designed along the lines of similar nodes in China and South Korea would need a minimum Rs2,500 of launch capital. The money would be used over a five-year period to develop the trunk infrastructure before the government invites private investments.
Additionally, Rs1,000 crore would be required as project development fund for floating bids and towards other purposes. The cities would boast of world-class residential facilities, centrally integrated civic services and an integrated public transport system.
According to the official, while the project is a public-private partnership project, the government would have to make some investments to make the cities attractive for the private sector.
The investments would mostly go towards development of infrastructure like internal and arterial roads, solid waste disposal system, storm water drainage, bus and rail transport, flood management and landscaping. The cities would attract additional private investments of between Rs60,000 crore and Rs70,000 crore, the official said.
The centre would extend funding by way of debt and equity, which would be ploughed into the Delhi-Mumbai Industrial Corridor Development Corporation Limited. The corporation is a joint venture between the government, Infrastructure Leasing & Financial Services Limited and
Infrastructure Development Finance Company Limited.
The cities would be developed along the industrial nodes of Kushkhera-Bhiwadi-Neemrana in Rajasthan; Dadri-Noida-Ghaziabad in UP; Bharuch-Dahej in Gujarat; Igatpuri-Nashik-Sinnar in Maharashtra and Pitampura-Dhar-Mhow in MP.