It was earlier conceptualised as 'Knowledge City,' and was to house prime educational institutes. The site for the proposed Vikram Udyogpuri is located about 8 km from Ujjain and 12 km from Dewas on the Dewas-Ujjain Road near Narwar village in Ujjain district.
"The Centre is likely to float bids for this industrial township and global bidders are expected to participate in bidding process.
It is likely to be developed as Smart City," said, a well-placed government source.
The state government has proposed to develop most of the 1,200 acre portions for residential, commercial, public and semi-public buildings besides educational institutes like medical colleges, engineering colleges, Industrial Training Institutes (ITIs) and others.
"The first phase project cost has been estimated at Rs 808.60 crore and it would commence operations by 2016-17," the official said. The Delhi Mumbai Corridor Trust has approved funding for the project.
The Cabinet Committee on Economic Affairs (CCEA) had earlier this year approved the development of trunk infrastructure for Vikram Udyogpuri which falls in Pithampur, Dhar Mhow investment region of the Delhi Mumbai Industrial Corridor (DMIC) project.
The committee had approved an investment of Rs 59.50 crore as 50 percent equity contribution of DMIC Trust to the joint venture corporation for the project and another investment of Rs 372.80 crore as debt with a 10 year moratorium from the start of the project and 12 year repayment at an annual interest of 8.5 percent.
"State government will contribute 50% of the equity," the source said adding, "The development of infrastructure of this industrial township is expected to the tune of private investments of Rs 13,000 crore."
"Since it would be a new greenfield township project, it would be an ideal destination to be developed as Smart City," the source said.
A special purpose vehicle has already been floated for the project, which will invite private developers to develop, operate and maintain real estate projects and commercial development on Public Private Partnership (PPP) basis and operation and maintenance of selected trunk infrastructure.
Japan International Cooperation Agency (JICA) and Japan Bank for International Cooperation (JBIC) will lend funds for the project.