Press Information Bureau

Government of India

Ministry of Commerce & Industry

04-July-2012 16:17 IST

Anand Sharma Addresses Consultative Committee meeting on DMIC

Union Minister of Commerce, Industry & Textiles Shri Anand Sharma chaired a Parliamentary Consultative Committee Meeting of the Ministry of Commerce & Industry on the progress made in the Delhi-Mumbai Industrial Corridor (DMIC) project, here today.

Being a flagship project of the Government of India, DMIC, Shri Sharma said that the project has huge economic and social importance. While addressing the members, Shri Sharma said that DMIC “is perhaps the most ambitious infrastructure project in the world with estimated investments of over US $ 100 billion.” Shri Sharma further added that the project envisaged doubling of employment potential within five years, tripling of industrial output, and quadrupling the exports from the region.

Highlighting that the Japanese government has committed US $ 4.5 billion for the first phase of the project – laid across Uttar Pradesh, Haryana, Maharashtra, Gujarat, Madhya Pradesh and Rajasthan – Shri Sharma also added that the Indian government has “decided to finance the entire trunk infrastructure in these townships while the internal infrastructure would be developed on a PPP model.”

Sharing with the members the development that the perspective plan for the entire corridor has been completed, Shri Sharma further said that “detailed environmental impact assessment for all the six cities is in progress and we are aiming to secure pre-clearances to ensure speedy implementation.”

Member of Parliament Shri Y P Trivedi raised the issues pertaining to cost escalation, delays in approvals and changes that will come due to enactment of the proposed Land Acquisition legislation. Shri T K Rangarajan queried about the types of industries which will be coming to the National Manufacturing Industrial Zones (NMIZs). Shri Manohar Tirkey wanted to know about the efforts to help eastern states. Shri Sudhendu Shekhar Roy wanted more clarity on the share patterns of the proposed fund and emphasised that monitoring system for the DMIC should be more cohesive. Shri Gorakh Jaiswal expressed his views pertaining to the parts of the project in the state of Uttar Pradesh. The Minister of State Shri Jyotiraditya Scindia replied to the members’ queries by highlighting that the project caters to rapidly urbanizing India. He further added that providing facilitative environment is very much part of the government’s agenda. On the delay in approvals, Shri Scindia pointed out that the proposed SPVs will be empowered to cut the delay and provide an industry friendly environment.

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DS/GK

Infrastructure financing and governance: DMIC trunk infrastructure government funded, internal works via PPP and empowered SPVs to reduce approvals. The DMIC is structured with central government financing for trunk infrastructure and internal infrastructure to be developed through public private partnerships; an external loan commitment is noted. A corridor perspective plan is complete and detailed environmental impact assessments for six cities are underway with aims for pre clearances to speed implementation. Governance concerns include cost escalation, approval delays, effects of proposed Land Acquisition legislation, fund share patterns, and monitoring cohesion; proposed Special Purpose Vehicles are intended to reduce delays and provide an industry friendly environment.