With the cabinet approving the re-structuring and financing of $90 billion Delhi-Mumbai Industrial Corridor (DMIC) last week, IL&FS and IDFC will now completely exit the DMIC Development Corporation (DMICDC), transferring their combined 51% stake to government-owned financial firms making DMICDC a deemed government company.
Currently, the government has a 49% stake in the DMICDC, while 51% is jointly held by IL&FS and IDFC.
However, it is now for the finance ministry to suggest and appoint the possible state-owned financial and infrastructure institutions which will buy the 51% stake of IL&FS and IDFC. A senior official told FE that ?banking secretary DK Mittal and DIPP secretary RP Singh met on Tuesday of the first time after the cabinet nod to discuss the issue. The banking secretary will announce the possible options within a few weeks?.
LIC and HUDCO are believed to be among the institutions who could buy stakes in DMIDC. DMIC Development Corporation (DMICDC) is a special-purpose vehicle for implementing the ambitious $90 billion project for building industrial enclaves along the Delhi-Mumbai rail corridor, encompassing seven states ? Delhi, UP, Haryana, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh.
