Cabinet approves Development of Trunk Infrastructure Components as part of Phase-II Development of the Shendra Bidkin Industrial Area

The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval to the following:

(i) Construction of trunk infrastructure for Phase II of Part I of Shendra Bidkin Industrial Area (SBIA) namely the Bidkin region spread across 31.79 sq km (3,179.20 ha) at an estimated project cost of Rs. 6,414.21 crore;

(ii) Investment of Rs. 2,397.20 crore as equity of DMIC Trust in the City/ Node SPV in a phased manner; and

(iii) Issuance of EPC tenders for selection of contractors for various packages of trunk infrastructure in a phased manner.

In accordance with the institutional and financial structure approved by the Government of India for DMIC projects, the project will be implemented through Aurangabad Industrial Township Limited (AITL). It is a Special Purpose Vehicle (SPV), constituted as Joint Venture between DMIC Project Implementation Trust Fund (DMIC Trust) and MIDC. DMIC Trust has already released its share of equity of Rs. 602.80 crore in the company towards development of 8.39 sq km in Phase I of Part I of Shendra Bidkin Industrial Area.

 

Following five trunk infrastructure components are being considered for the Bidkin Industrial Area of 31.79 sq km, as part of Phase-ll development of the Shendra Bidkin Industrial Area (SBIA) near Aurangabad, Maharashtra:

i. Roads and Utility Services;

ii. Pipe line from Jayakwadi Dam to Bidkin and Water Treatment Plant (WTP);

iii. Information, Communication and Technology (ICT) works;

iv. Sewage Treatment Plant (STP) and Common Effluent Treatment Plant (CETP), Solid Waste Management (SWM); and

v. Area Landscaping for Bidkin.

Development of trunk infrastructure in Phase-II (Bidkin Region) of SBIA will be undertaken in three phases commencing from FY 2016-17 and is likely to be completed by FY 2020-21.

The estimated cost of the five packages of trunk infrastructure is Rs.6,414.21 crore. As per the institutional and financial structure approved by the Government of India for DMIC project, land for the project will be contributed by the State Government as their equity. DMIC Trust will implement various trunk infrastructure components subject to a ceiling of Rs.3,000 crore. Out of this, an equity of Rs.602.80 crore has already been released for phase I earlier by the DMIC Trust. Balance Rs. 2,397.20 crore will be released for phase 2 of Part I. The value of land brought in by the State Government would be the equity contribution of the State Government. The balance funding, i.e., funding over and above the contributions from the Gol and the State Government, required for the trunk infrastructure shall be met from the internal accruals of the SPV/ debt raised by the SPV as may be required.

Investment in the development of trunk infrastructure is essential for the creation of a greenfield smart industrial city. The response for Phase 1 of part I of SBIA has been very encouraging and industries in automobile, engineering, electronic system design and manufacturing (ESDM) sectors have expressed their interest. Development of the SBIA as a manufacturing hub will generate a series of direct and indirect benefits through employment, enhanced GDP, development of ancillary units and spin-off of socio-economic benefits. Inclusion of sustainable and green building practices will create benchmarks for urban development in the country. The 31.79 sq km of land for Bidkin Industrial Area has been acquired by Maharashtra Industrial Development Corporation (MIDC) and is in possession of MIDC.

Background:

The Government of India is developing the Delhi Mumbai Industrial Corridor (DMIC) Project, as a global manufacturing and investment destination by utilising the high capacity 1,504 km long Western Dedicated Freight Corridor (WDFC) as the backbone. The DMIC project is being implemented jointly by the Government of India and the respective State Governments. Investment Regions/ Industrial Areas have been identified for development, across six states namely Gujarat, Haryana, Madhya Pradesh, Maharashtra, Rajasthan and Uttar Pradesh.

A node / city level SPV has been formed as a joint venture between Government of India (Gol) and Government of Maharashtra (GoM) under the name "Aurangabad Industrial Township Limited (AITL)". The share of Gol through DMIC Trust is 49% and the remaining 51% is held by GoM through Maharashtra Industrial Development Corporation (MIDC). MIDC has notified 101 sq km of area for industrial development under SBIA. The master plan of Shendra Bidkin Industrial Area (SBIA) comprises two parts viz. Part-l and Part-ll. The Part-l consists of total area of 40.18 sq km, which is further divided into two parts, viz. Phase-l and Phase-ll. Phase-l covers an area of 8.39 sq km located north of Jalna Road adjoining existing MIDC Shendra Industrial Park and was approved by Cabinet Committee on Economic Affairs (CCEA) in its meeting held on May 30, 2015. The contracting agencies have already mobilized resources and material at site and the works are at different stages of implementation.

Phase-ll of Part-l namely the Bidkin Region, which includes the remaining area of 31.79 sq km located near Bidkin for which the development works of various trunk infrastructure components are to be taken up. Development of the Part-ll of SBIA consisting of total area of 43.99 sq km will be taken up at a later stage depending on the land made available by the State Government. In accordance with the institutional and financial structure approved by the Government of India for DMIC projects, the project will be implemented through Aurangabad Industrial Township Limited (AITL), SPV constituted as Joint Venture between DMIC Project Implementation Trust Fund (DMIC Trust) and MIDC. DMIC Trust has already released its share of equity of Rs. 602.80 crore in the company towards development of 8.39 sq km in Phase I of Part I of Shendra Bidkin Industrial Area.

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