DMIC projects offer hope to troubled infra sector

Written by Rajat Arora | New Delhi | Updated: Sep 15 2013, 09:34am hrs
The six projects cleared by the Delhi Mumbai Industrial corridor (DMIC) Trust on Wednesday have come as a breather for the infrastructure sector, which is currently facing a grim investment scenario.

Investment worth over R1.1 lakh crore is expected to start pouring in phases in a years time for the six projects, which will generate 2,15,000 direct and 6,18,000 indirect jobs. The projects include building of integrated industrial townships, multi-model logistic hubs and last-mile connectivity for special investment regions.

The land for the Vikram Udyogpuri project near Ujjain and an integrated industrial township in Dadri, Uttar Pradesh, has already been acquired. The work of building the trunk infrastructure would be done in phases and should be completed in a year or two. The private investment would start coming in simultaneously, said Abhishek Chaudhary, vice-president, corporate affairs, DMIC Development Corporation.

The Vikram Udyogpuri project near Ujjain, Madhya Pradesh, with a total area of 1096.63 acres was flagged off on Friday. The township would consist of automotive, IT and engineering services industries and educational institutions, supported by residential, commercial and other urban facilities.

The Dadri industrial township project will be inaugurated in a months time, said Chaudhary. The township is proposed to have new-age industry sectors. With a total site area of 747.5 acres, the project size is said to be in the region of R33,000 crore.

Land for the multi-model logistics hubs coming up in Greater Noida and Rewari is expected to be acquired by the end of this year. The state governments have to provide us with land, which they are expected to do by the end of this year, Chaudhary said. The central government signs JVs with each state for the DMIC projects and states contribution comes in the form of land.

The total investment in the Greater Noida project will be approximately R35,000 crore and for the Rewari hub it is expected to be around R40,000 crore.

Dholera Special Investment Region (DSIR), which will have an investment of R70,000 crore, will be connected to the railway network through a new line connecting Bhimnath and Dholera. It will be done through the participative policy of Indian Railways, where DMICDC will build its private line, Chaudhary added. The total cost of the rail project is expected to be R250 crore.

The project of improvement of water supply to Pithampur-Dhar-Mhow Investment Region in Madhya Pradesh is also expected to be done in a years time. The project will serve the future water requirements of the project area, which includes Pithampur Industrial Area with major industrial development proposed in the vicinity. The project is expected to cost R300 crore.

The $90-billion DMIC project is aimed at creating mega industrial infrastructure along the Delhi-Mumbai Rail Freight Corridor. Japan is giving financial and technical aid for the project, covering seven states and totalling 1,483 km. Japan has committed to invest $4.5 billion in the project. The Union Cabinet had approved an expenditure of R18,500 crore for the project.