Japan's assistance for DMIC to be used through STEP

India will utilise Japan's assistance for the $100 billion Delhi Mumbai Industrial Corridor (DMIC) though Special Terms for Economic Partnership (STEP).

The Cabinet Committee on Economic Affairs chaired by Prime Minister Manmohan Singh gave approved the proposal of utilising the assistance under the Japan International Cooperation Agency (JICA) through the STEP of Japanese official development assistance loans for the Delhi Mumbai Industrial Corridor (DMIC) project and the operational rules, terms and conditions of this tied loan facility.

The Indian government is developing the DMIC project as a global manufacturing and investment destination by utilising a high capacity 1,483 km long western dedicated freight corridor as the backbone.

The development of industrial cities with world class infrastructure in the DMIC region will attract an estimated investment of around $90-100 billion, while providing employment opportunities for over three million people.

"The proposal for availing the $4.5 billion facility through a STEP loan is expected to bring in Japanese funding, cutting edge technology and knowhow into projects implemented in DMIC," said an official statement released after the meeting.

"This would also enable the Japanese companies to establish their manufacturing facilities in India and enable transfer of technology from Japan to India," it said.