Government today approved setting up of three projects, including a solar power unit under the Delhi-Mumbai Industrial Corridor, worth Rs 2,558.6 crore, a move which would boost manufacturing sector in the country.
The cabinet committee on economic affairs also approved the special loan facility to be provided by Japan International Cooperation Agency (JICA) for development of DMIC project.
Further, the projects cleared by the CCEA include formation of a SPV for implementation and operation of model solar power project at Neemrana as a 100 per cent subsidiary of Delhi Mumbai Industrial Corridor Development Corporation and approval for development of trunk infrastructure for integrated industrial township at Greater Noida.
The other projects is the development of trunk infrastructure for the township in Ujjain.
"The CCEA has approved the utilisation of Japanese assistance under the JICA through Special Terms for Economic Partnership (STEP) of Japanese official development assistance loans for the DMIC project and the operational rules, terms and conditions of this tied loan facility," an official statement said.
Japan has committed to invest USD 4.5 billion in the government ambitious USD 90 billion DMIC project.
The project is aimed at creating mega industrial infrastructure along the Delhi-Mumbai Rail Freight Corridor, which is under implementation. Japan is giving financial and technical aid for the project, which is developed on either side of a 1,483-km stretch running across seven states.
"The proposal for availing USD 4.5 billion facility through a STEP loan is expected to bring in Japanese funding, cutting edge technology and knowhow into projects implemented in DMIC. This would also enable the Japanese companies to establish their manufacturing facilities in India and enable transfer of technology from Japan to India," it said.
The assistance from JICA under the STEP loan facility will be required particularly for trunk infrastructure projects and transport connectivity projects which may not be commercially viable in their initial stages.
It also said the official development assistance loan under the STEP scheme is available at an interest rate of 0.1 per cent for a repayment period of 40 years covering up to 100 per cent of the project cost. The scheme also provides for a moratorium of 10 years.
The development of trunk infrastructure for the township in Ujjain and Greater Noida will require estimated investment of Rs 808.60 crore for stage 1 of the project and Rs 1,714.70 crore, respectively.
"The CCEA approved the formation of a Special Purpose Vehicle for implementation and operation of the model solar power project at Neemrana as a 100 per cent subsidiary of the DMIC Development Corporation.
"The total financial implications for the government is around Rs 35.34 crore, out of which the equity component is Rs 13 crore and the debt component is Rs 22.34 crore," it said.
