'Govt has created a Rs 17,500-cr trust fund to implement DMIC's Phase-I'

Interview with Alkesh Kumar Sharma, MD and CEO of the DMIC Development Corporation

The Delhi-Mumbai Industrial Corridor (DMIC) is a keenly watched mega infrastructure project. ALKESH KUMAR SHARMA, managing director and chief executive officer of the DMIC Development Corporation, talks to Nirmalya Behera and Jayajit Dash on various facets. Edited excerpts:

DMIC is estimated to cost $90 billion (Rs 60 lakh crore). How is the funding tied up?

All the trunk infrastructure components across DMIC cities are being developed by utilising Government of India (GoI) funds, wherein the land acquisition or pooling is the responsibility of the respective states. For Phase-I, the GoI has created a DMIC Project Implementation Trust Fund with a corpus of Rs 17,500 crore. Plus, a Project Development Fund of Rs 1,000 crore. 

This will be utilised as a revolving corpus and the Trust would leverage the resources provided by GoI to raise long-term funding from financial institutions (World Bank, ADB & capital bond markets), for supporting the development of DMIC cities. For specific projects like logistics parks/hubs, airport projects and exhibition centres, private funding options are being worked out. Japan’s government has agreed to provide $4.5 billion through a mix of lending for various projects in Phase-I. 

Which top global companies are eyeing the land lots to be awarded? On what basis would these be awarded?

Airbus, Kia Motors, Vivo, Senvion, Coveme, Micromax, Ascendas and CFLD have shown interest in the DMIC cities where construction activities have been initiated and land parcels are ready for allotment. Pacts were signed with Airbus, Pacific Construction, Nirma and Marquis Energy during the ‘Vibrant Gujarat 2017’ summit. The plots are being allotted on the basis of an online allotment mechanism, after scrutiny on various details. Allotment has also begun in the Shendra Industrial Area of Maharashtra and applications have been received at other locations. 

What efforts are being made to hasten land acquisition? How much land has been required?

Development of new cities, industrial nodes or zones is being taken up. In line with an institutional and financial structure approved by GoI, land acquisition or pooling is the responsibility of the state concerned. They are responsible for making the land available. 

The Gujarat government has transferred 12,500 acres to the Dholera Special Investment Regional Development Authority (DSIRDA) and development of trunk infrastructure has begun on 5,600 acres. Acquisition is in progress for airports, logistic hubs and MRTS (mass rapid transit system) projects.

What amenities would be on offer at DSIRDA? When is that segment likely to be completed?

It is the first time that Smart and Intelligent City initiatives are being undertaken for an entire city in an integrated manner under the DMIC. Critical components for smart community development are 3Rs — Recover, Recycle, Reuse. In addition to the preparation of physical master plans, ICT (information and communication technology) master plans have been prepared for the new cities being developed.