The Cabinet Committee on Economic Affairs has approved the formation of a Joint Venture Company (JVC), with equity contribution of 50 percent each from the Delhi Mumbai Industrial Corridor (DMIC) Trust and the Government of Uttar Pradesh (U.P.) represented by the Greater Noida Industrial Development Authority (GNIDA). The JPC is for development of trunk infrastructure of the integrated industrial township at Greater Noida, in the Dadri-Noida-Ghaziabad Investment Region of the Delhi Mumbai Industrial Corridor.

The development of the infrastructural industrial township is expected to attract private sector investments of over Rs.33,000 crore over a period of 30 years, generate significant employment (direct or indirect) and lead to multiplier effect in each of the target industry sectors, including backward and forward linkages with other sectors of the economy. The project will drive manufacturing and catalyse the growth of industrial development in the DMIC region by attracting skilled human resources at the Integrated Industrial Township at Greater Noida.

The project cost of Rs.1714.70 crore is proposed to be met by equity contribution of Rs.617.20 crore by the DMIC Trust and the State Government. The equity from the State Government would be in the form of land which would be transferred to the JVC. The capital expenditure of Rs.480.30 crore will be met from internal accruals.

The project is proposed to be implemented in two stages. In the first stage, the JVC formed by DMIC Trust and Govt. of UP will ensure the creation of trunk infrastructure for the overall infrastructural industrial township development. This will attract private sector investments and enhance the marketability of the project. In the second stage, private players will be invited for the phased development of the township. The JVC will evaluate the results of PPP developments and consider the development of the subsequent phases through PPP or land monetization as may be appropriate.

Background

The Government of India is developing the Delhi Mumbai Industrial Corridor (DMIC) Project as a global manufacturing and investment destination by utilizing a high capacity 1483 Km long western dedicated Freight Corridor as the backbone. The Dadri Noida Gaziabad Investment Region (DNGIR) located in Uttar Pradesh is one of the eight investment regions/industrial areas identified for development in the first phase of the DMIC Project. Delhi Mumbai Industrial Development Corporation (DMICDC), in consultation with the Govt. of UP, has identified the development of the infrastructural industrial township to drive manufacturing activities and promote sustainable development. The site for the township at Greater Noida is a part of the delineated DNGIR planned within the notified Greater Noida Master Plan -2021 and covers a total area of 302.5 hectares (747.5 acres).

Joint Venture Company formation drives trunk infrastructure development, enabling private sector participation in integrated industrial township. Approval was granted for formation of a Joint Venture Company with equal equity from the DMIC Trust and the Government of Uttar Pradesh, the State's equity to be contributed as land transferred to the JVC, to develop trunk infrastructure for an integrated industrial township in Greater Noida. The project is to be implemented in two stages: JVC led delivery of core trunk infrastructure to attract private investment, followed by phased private development through PPP or land monetization as appropriate.