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The Cabinet Committee on Economic Affairs approved works worth Rs 2,784.83 for the first phase of the Dholera Special Investment Region (DSIR) in Gujarat and Rs 1,533.45 crore for the Shendra Bidkin Industrial Area (SBIA) in Maharashtra. Both these efforts form part of the Delhi Mumbai Industrial Corridor (DMIC) project.
The DMIC Trust will invest the approved amounts as equity in the city/node SPVs. While the trunk infrastructure components of the 22.5-square kilometre DSIR will include roads and services, Phase I of the ABCD building complex, water treatment plant, sewage treatment plant (STP) and common effluent treatment plant (CETP), works to be taken up in SBIA will include road and utility services, rail over bridges (RoBs), STP, CETP and Solid Waste Management (SWM) as well as the district administrative building (DAB) and area landscaping.
For DSIR, the trunk infrastructure development is likely to commence later this year and be completed by 2018-19.
The Cabinet also approved a pact on coastal shipping between India and Bangladesh to carry out coastal movement of goods between the two countries. Exim trade between India and Bangladesh would be benefited by way of reduction in freight charges. It will also improve the utilisation of port capacities of Indian ports and open up new opportunity for Indian coastal vessels. It will also help in decongestion of roads especially at the Land custom stations/integrated check posts at the Indo-Bangladesh boarder. The Cabinet approved signing of a pact between India and Bangladesh to prevent human trafficking.
Upgradation of 29 cities and towns on the basis of 2011 population census for providing higher house and transportation allowance to central government employees was also given a go-ahead. The Cabinet also gave nod to signing of an agreement between India and Sweden to promote cooperation in the MSME sector.
The Cabinet was apprised of the constitution of a committee under the chairmanship of Prime Minister Narendra Modi to suggest different programmes and activities to be undertaken by various ministries, departments, states and Union Territories to celebrate the 125th birth anniversary of B R Ambedkar.
The Union government is developing DMIC as a global manufacturing and investment destination by utilising the high capacity 1,483-kilometer-long Western Dedicated Freight Corridor (DFC) as the backbone. In the first phase, eight investment areas and industrial regions have been identified for development in Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh.
Each investment region or industrial area will be developed through a Special Purpose Vehicle (SPV), set up as a joint venture company between the DMIC Trust and the respective state government or state nodal agencies. According to the institutional and financial structure approved by the government, the land required in the project is to be contributed by the state governments as their equity, with the DMIC Trust providing cash in the form of equity and debt for implementing various trunk infrastructure components subject to a ceiling of Rs 3,000 crore. Any funding required beyond the contributions from the Union and state governments in subsequent phases is to be met from the internal accruals of the SPV and debt raised by it.
WATERWAYS AGREEMENT WITH BANGLADESH: The Union cabinet approved an agreement on coastal shipping between India and Bangladesh for the movement of goods between the two countries. Exim trade between India and Bangladesh would benefit from this due to reduction in freight charges. It will also improve the utilisation of the capacities of Indian ports and open up new opportunity for Indian coastal vessels. It will also help in decongestion of roads especially at the land custom stations and integrated check posts on the Indo-Bangladesh border.
