Govt wants pvt players out of DMIC funding body

The Government has proposed to replace private sector players IL&FS and IDFC with state-owned institutions in DMIC Development Corporation (DMICDC), an agency which was set up to raise $4.5 billion to fund the Delhi-Mumbai Industrial Corridor (DMIC) project.

“The Finance Ministry has proposed to replace IL&FS and IDFC and bring in government-owned financial institutions in DMICDC. A Cabinet note has been moved in this regard,” DMICDC Chief Executive Officer, Mr Amitabh Kant, told reporters on the sidelines of the India-Japan Global Partnership Summit here today.

IL&FS and IDFC, according to another official who was here to participate in the meeting, could be replaced by Life Insurance Corporation and housing development company Hudco in the DMICDC.

The equity restructuring, Mr Kant said, is being proposed to avoid any clash of interest between the project participants at a later stage.

IL&FS and IDFC, it may be mentioned, have shown an interest in downstream investments along the Delhi-Mumbai Industrial Corridor.

The Government has a 49 per cent stake in the DMIC project, while Infrastructure Leasing and Financial Services (IL&FS) holds 41 per cent and Infrastructure Development Finance Company (IDFC) the remaining 10 per cent participating interest.

Mr Kant further said India is also in talks with the Japanese Government to raise another $4.5 billion for the project.

“Together, this $9 billion would be used for funding commercially non-viable infrastructure, like sewerage and drainage in the DMIC,” he added.

COMMENT NOW