For the first time, the Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) has leased out land developed by it to companies to set up units, 10 years after the idea of such a corridor was first mooted and six years after the Cabinet cleared it.
For the first time, the Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) has leased out land developed by it to companies to set up units, 10 years after the idea of such a corridor was first mooted and six years after the Cabinet cleared it. As many as 24 plots, covering 11.15 acres, along the DMIC at Shendra-Bidkin in Maharashtra have been offered to companies, mostly small and medium enterprises, which fetched `15 crore to the corporation. Vendree Sales Service, BG LIIN Electricals and Mikronik Gauges are the key companies to get the plots.
DMICDC chief executive Alkesh Kumar Sharma told FE that land already developed by the corporation 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 has just been leased out, DMICDC is in the process of receiving bids for other cities.
The base prices for plots in these cities range from `2,100 per sq metre to `7,800, depending on the location. “The response to the land offer has been pretty good. Many companies, both domestic and international, have been submitting queries about various DMIC projects and some are visiting the sites as well,” said Sharma, who took over the reins of DMICDC in October 2015.
The Centre has so far approved `11,405 crore for developing these projects, and states concerned have to match this contribution. The Centre pumps in money for various projects related to the DMIC through the DMIC Trust, while the state’s contribution is mainly in the form of land.
According to the model adopted by DMICDC, while states offer land, the funds released by the Centre usually go towards its development. Once the land is developed, it will be allotted to willing investors at a price and with those funds, DMICDC will acquire another chunk of land and start developing it. Sharma had earlier told FE that roughly 60% of all DMIC projects will be devoted to industry and the rest to residential and commercial infrastructure, hospitals, etc. All investments would be project-based.
Japan International Cooperation Agency (JICA) — which has committed $4.5 billion for various DMIC projects, to begin with — is studying two metro projects (one in Haryana and the other in Gujarat) for investment. Once it approves any project, it will release funds accordingly. 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 $90-100 billion by 2040, the 1,504-km DMIC across six states was intended to be developed as a “global manufacturing and trading hub”. The Centre has committed $4.5 billion for the first phase of the DMIC projects. DMIC is touted as the world’s single-largest infrastructure project