The Delhi Mumbai Industrial Corridor and Development Corporation (DMICDC), after successfully awarding more than Rs 15,000-crore packages in the first phase of construction in Maharashtra, Gujarat and Greater Noida, is in an advanced stage of awarding two big multi-modal logistic hubs, valued at Rs 10,200 crore, in Uttar Pradesh and Haryana by the end of June. The hubs will incorporate entire end-to-end services for supply chain, small processing activities from sorting, grading and packaging to delivery of products. These hubs, also termed freight villages, will be first-of-their-kind in India. Alkesh Sharma, CEO and managing director of DMICDC, told FE, “The first project in UP near Greater Noida, valued at Rs 4,800 crore, will be awarded in April, and the second in Haryana, valued at `5,400 crore, will be awarded by June-end.” “The initial funding requirement for UP of around Rs 1,600 crore and for Haryana of `1,100 will be managed through internal accruals such as land monetisation, while at a later stage, we may look at raising funds through various debt and equity options. The special purpose vehicle created for the projects will also have access to equity and pension funds,” Sharma said.
The DMICDC has already awarded four packages for construction in the first phase, one at Shendra Bidkin in Maharashtra for Rs 8,000 crore, another at Dholera in Gujarat for Rs 4,700 crore, one at Vikram Udyogpuri in Ujjain for Rs 1,300 crore, and one at IIT Greater Noida for Rs 1,500 crore. The project at Shendra Bidkin is expected to start operations in March 2019. Operations at Dholera may begin in September 2019, while the ones in Vikram Udyogpuri and IIT Greater Noida are expected to be completed by this December.
“At Shendra Bidkin, we have allotted 35 plots, where Korean player Hyosung is setting up a spandex unit for Rs 3,000 crore, while in Noida, Micromax is making an investment of Rs 500 crore. We are hopeful other sites will now start to generate investments, as the infrastructure has now
come up for investors to see,” Sharma said.“We have also started the promotional activity now, which will catch speed going ahead,” he said.
The first phase of the DMIC is expected to get over by 2025, second phase by 2032 and the third phase by 2037. “In Rajasthan, land acquisition activities have been on track. We expect the Rajasthan government to soon acquire the 3,500 acre that was notified in 2012. We expect to meet our set target if these delays are mitigated,” Sharma said.