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The Government is now just a step away from allowing Japan Bank for International Cooperation (JBIC) to take a 26 per cent equity stake in the Delhi Mumbai Industrial Corridor project.
Official sources told Business Line that the final Cabinet note will be taken up shortly for the participation of the Government of Japan through JBIC in the equity structure of the DMIC Development Corporation (DMICDC) to the extent of 26 per cent.
This follows the nod given by the Finance Ministry last week in support of the draft Cabinet note that was floated in December 2011, they said.
Consultations
There were several inter-ministerial consultations on the draft note. In the DMICDC, India will have a 49 per cent equity stake, while JBIC will hold 26 per cent. The remaining 25 per cent will be held by the Government of India-owned financial institutions - LIC, IIFCL and HUDCO.
The initial equity base is Rs 10 crore, which will soon go up to Rs 100 crore.
TRUST FOR DMIC
Meanwhile, the Department of Industrial Policy and Promotion (DIPP), which is the nodal body for the $90-billion DMIC, has sought inputs from the Planning Commission on the formation of a trust to manage the finances of DMICDC.
The grants given by the Centre from time to time will form the corpus of this trust.
DMICDC is a special purpose vehicle incorporated in January 2008 and is headed by the DIPP Secretary.
Development fund
DMICDC is in charge of the DMIC's ‘Project Development Fund (PDF)' that is in the nature of a revolving fund, which is used to take up project development activities in the DMIC on a public-private partnership basis. The DMIC spans 1,483 km and covers six states - Uttar Pradesh, the National Capital Region of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra.
Thrust on manufacturing
Its end terminals are at Dadri (near Delhi) and the Jawaharlal Nehru Port near Mumbai.
The Government is keen on fast-tracking big-ticket infrastructure projects such as DMIC with a special thrust on manufacturing at a time when there is a slowdown in the manufacturing growth.
INVESTMENT ZONES
DMIC will house several national manufacturing and investment zones, which will be incentivised through the National Manufacturing Policy.
Japan has already committed a $4.5 billion investment in DMIC, while India has agreed to pitch in with Rs 18,500 crore to finance the project's trunk infrastructure.
arun.s@thehindu.co.in
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