Govt to borne 35% cost of Delhi-Mumbai Industrial Corridor

DMIC Development Corporation, which is developing the Delhi-Mumbai Industrial Corridor, today said the government will finance 35 per cent of total funding requirements of the corridor, while the rest of the money will be generated through public-private partnership.

"Trunk infrastructure on the corridor will be funded by the government, which is approximately 35 per cent of the overall funding requirements," Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) CEO Amitabh Kant said while addressing a CII conference.

He added that there is no shortage of fund and rest of the funding requirements will be generated through PPP mode.

The Delhi-Mumbai Industrial Corridor is a mega infrastructure project, covering an overall length of 1,483 km between the National Capital and financial capital Mumbai and entails an investment of over $90 billion.

 

The corridor is being developed in collaboration with the Japanese government as a global manufacturing and trading hub. The first phase of the industrial corridor is slated for completion in 2018.

Present on the occasion, Director Finance of Dedicated Freight Corporation of India, R K Sinha said that next freight corridors when approved by the government would require different kind of financing and innovative financial structures as about 20,000 km of double track will be laid under this.

The Dedicated Freight Corporation of India (DFCIL) is currently developing two dedicated corridors for freight movement -- Dankuni in West Bengal to Ludhiana as Eastern Freight Corridor and Jawaharlal Nehru Port Trust in Mumbai to Dadri in Uttar Pradesh as Western Freight Corridor.

Funding requirement of Western corridor is being met by Japan International Cooperation Agency (JICA), while the government and World Bank would finance different stretches of the Eastern Freight Corridor, he said.

He added that for Sonnagar-Dankuni stretch on the Eastern Corridor, PPP mode will be adopted, for which the DFCIL is in the process of finalising detail terms of concession agreement.