The DMICDC has put on the block around 400 acres of land in its Greater Noida project for industries and has leased 137 acres of it to three companies, including Haier Appliances India, DMICDC chief executive officer Alkesh Kumar Sharma said.
The Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) has put on the block around 400 acres of land in its Greater Noida project for industries and has leased 137 acres of it to three companies, including Haier Appliances India, DMICDC chief executive officer Alkesh Kumar Sharma told FE.
The base price of land for setting up manufacturing units here are learnt to be in the range of Rs 5,100-11,000 per square metre (the bigger the allocation, the lower could be the per-unit rates), while those for establishing IT services facilities have been fixed at roughly Rs 20,000 per square metre. This is because companies need much larger area to set up manufacturing units than IT services ones.
While Haier has got close to 123.7 acres in DMICDC’s Integrated Industrial Township in Greater Noida, Satkriti Infotainment has been allocated 9.8 acres and Forme Trading 3.5 acres. Haier is expected to create 3,950 jobs at this unit, and the two others pledge direct employment to 3,600 people.
Haier’s plan to set up a facility here at an investment of Rs 3,069 crore reflects growing demand among big investors for land developed by the DMICDC and the quality of its trunk infrastructure, Sharma said. The appliances major is the second large investor to have bought land developed by DMICDC, after South Korea’s Hyosung that had bought land to set up a textile unit at another DMICDC project (Shendra in Maharashtra) at an investment of around Rs 3,400 crore.
DMICDC is still in the process of getting applications from potential investors to lease out more land there. The total project covers an area of 750 acres, of which around 400 acres will be available for industrial use.
Last year, DMICDC leased land in Shendra, a first in any of its projects. The entry of established players is expected to give a much-needed push to DMICDC projects and also reflects the rising importance of the corridor, the concept of which was mooted over a decade ago and cleared by the Cabinet in 2011.
Land already developed by DMICDC at four cities — Dholera (Gujarat), Shendra-Bidkin, Vikram Udyogpuri (Madhya Pradesh) and Greater Noida (Uttar Pradesh) — is up for grabs. While a chunk of land at Shendra-Bidkin and Greater Noida has been leased out, DMICDC is in the process of selling in other cities.
According to the model adopted by the DMICDC, states are required to offer land, while the Centre releases funds matching the land’s worth for its development. Once the land is developed, it is allotted to willing investors for a price and with those funds, DMICDC acquires another chunk of land and starts developing it. Until the state concerned offers land for a project, the Centre doesn’t release its share of funds to the DMICDC either.
The central government has already approved Rs 15,000 crore for various DMIC projects, while relevant states have contributed land worth the same amount. Usually, DMICDC joins hands with entities of the state governments concerned to form special purpose vehicles, which are the anchors of projects in their respective states. For the Greater Noida project, the corporation has tied up with Greater Noida Industrial Development Authority.
Although Japan International Cooperation Agency (JICA) has committed $4.5 billion for various DMIC projects, to begin with, the DMICDC hasn’t sought any funds from it yet. JICA’s committed funds will be in the form of soft loans at a low interest rate of less than 1%.
With an envisaged investment of $100 billion by 2040, the 1,504-km DMIC across six states was intended to be developed as a “global manufacturing and trading hub”. DMIC is touted as the world’s single largest infrastructure project. The project was one of the important measures announced by the government to help drive the share of manufacturing in the country’s GDP to 25% by 2022 from roughly 16% now.