The Department of Industrial Policy & Promotion (DIPP) has not just set the ball rolling on the funding of this mega venture, but will also be soon floating request for quotations (RFQs) for the project's execution
It may finally be a real beginning for one of the country's most ambitious infrastructure projects, the Delhi-Mumbai Infrastructure Corridor.
The Department of Industrial Policy & Promotion (DIPP) has not just set the ball rolling on the funding of this mega venture, but will also be soon floating request for quotations (RFQs) for the project's execution, reports CNBC-TV18’s Manasvi Ghelani.
A dream that was envisaged by the first UPA government more than eight years ago but one that will perhaps finally see the light of the day under Team Modi.
If DIPP officials are to be believed, the ambitious USD 90 billion Delhi Mumbai Industrial Corridor will see some rapid action over the next four months.
Says DIPP additional Shatrughna Singh, “Tenders will be floated by DMIC Development Corporation (DMICDC) in this financial year.”
Successive governments have made tall promises of getting the DMIC off the ground. However this time, the Modi government seems to be going beyond the talk.
DMICDC has divided the entire corridor into 22 nodes and officials say the process of arranging capital for seven of these nodes has already reached an advanced stage.
The government has opted for a special purpose vehicle (SPV) model, which will see fund infusion from both the public and private sector.
“For a particular node, you need Rs 2000-3000 crore of cash. For that, we are looking to typically tap the budgetary resources or the government will go for multilateral funding,” says Singh. “For a node of 100 sq km, we will be infusing about Rs 1000-1500 crore of cash equity into the SPV.”
Beyond the DMIC, DIPP is working on a larger agenda -- a move to take away regulatory uncertainties from execution of long-term infrastructure projects. The department will be floating a proposal that seeks to freeze project plans, clearances and guidelines for 10 years once a project blueprint is approved for smart cities or industrial corridors.
Any changes in the plan will require approval from the soon-to-be-set-up National Corridor Development Authority.
A progressive thought, but one that perhaps will be hard to sell to states - especially those headed by non-BJP governments.