The Hindu Business Line : Kamal Nath wants Delhi-Mumbai corridor to include MP

On fast track: The Minister of Economy, Trade and Industry of Japan, Mr Akira Amari, and the Minister of Commerce & Industry, Mr Kamal Nath, at a meeting on Delhi-Mumbai industrial corridor in the Capital on Monday. —

New Delhi, July 2 If the Commerce Minister, Mr Kamal Nath, has his way, the alignment of the proposed Delhi-Mumbai Industrial Corridor (DMIC) belt, to be built at a cost of $90 billion, would have to be changed to include Madhya Pradesh, the State from which Mr Nath was voted to Parliament.

This is even as the Japanese Government and leading firms including Suzuki Motor, Mitsui & Company, Honda Motors and NEC pitched for fast implementation of the proposed DMIC. In fact, the Japanese Minister for Trade and Economy, Mr Akira Amari, urged Mr Nath to speed up the process in its current planned design rather than altering the alignment. About three million jobs are expected to be created in the belt.

INVESTMENTS

The DMIC which includes States such as Uttar Pradesh, Haryana, Rajasthan, Gujarat and Maharashtra is proposed to be built on 150 km on either side of the Indian Railways’ dedicated freight corridor. The $90- billion investment — spread over a seven-year period — will be needed for the infrastructure like roads, ports and airports, in the industrial belt that will come along the high speed freight corridor being assisted by the Japanese Government. When asked about the investments that India expects from Japanese firms, Mr Nath said, “We hope to get $10 billion investment over the next five years.”

INVESTMENT ZONES

The Department of Industrial Policy and Promotion (DIPP) Secretary, Mr Ajay Dua, said that the strategy is to build about 10 market driven nodes initially with high quality infrastructure, enhanced connectivity to dedicated freight corridor, highways, ports and hinterland, having a logistics hub, a knowledge city and agri-processing zone besides industrial areas and special economic zones.

The market driven nodes can be investment regions (of at least 200 square km area) or industrial area (at least 100 square km). After consulting with State Governments, five investment regions that have been identified are Dadri-Noida-Ghaziabad (UP), Manesar-Bawal (Haryana), Khushkhera-Bhiwadi-Neemrana (Rajasthan), Ahmedabad-Dholera (Gujarat), Iggatpuri-Nashik-Sinnar (Maharashtra).

The shortlisted industrial areas are Meerut-Muzaffarnagar (UP), Faridabad-Palwal (Haryana), Jaipur-Dausa (Rajasthan), Vadodara-Ankleshwar (Gujarat) and Alewadi/Dighi port (Maharashtra).

“The route is not final as yet. It needs to be corrected. It does not include Madhya Pradesh,” said Mr Nath, after the regions were announced.

IMPLEMENTATION STRUCTURE

While the exact implementation structure is yet to be approved by the two Governments, the proposal is to set up an apex steering committee headed by the Prime Minister and concerned Central Ministers and Chief Ministers of respective DMIC States.

A corporate entity — Delhi Mumbai Industrial Corridor Development Corporation — is proposed to be formed to undertake project planning, coordinate amongst stakeholders, monitor implementation and raise overseas finance. To start work on project development, a $250-million project development fund can be set up, Mr Dua said.

FUNDING

Funds for the project would come from the Indian Government, Japanese loans, investment by Japanese firms and through Japan Depository Receipts issued by Indian companies, the Japanese Minister for Economy Trade and Industry said.

The final task force is set to meet in Tokyo on July 23-24 and project preparation is expected to commence after Japanese Prime Minister’s visit to India in August.

Mr Nath said a similar corridor would also come in the Eastern States. “Other States like West Bengal have already expressed their willingness to replicate this model and I expect initial studies on the proposed Eastern India corridor to begin early next year,” he said.

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