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DIPP pushes for 11-fold hike in FY15 budget for DMIC
The Financial Express, 13 June 2014, New Delhi: In what could give a big push to urbanisation and infrastructure creation, two of the BJP’s chief electoral promises, the Narendra Modi government may increase this fiscal’s budget outlay for the prestigious Delhi-Mumbai Industrial Corridor (DMIC) manifold.
Dissatisfied with the 2014-15 interim budget estimate of just R693 crore for DMIC, the Department of Industrial Policy and Promotion (DIPP) has urged the finance ministry to raise the outlay to R7,478 crore in the forthcoming regular Budget to develop trunk infrastructure for the five smart industrial cities and six other projects planned in the initial phase of the mega public-private partnership project.
The DIPP is the nodal body for the DMIC project, principally an India-Japan venture. It is expected to generate investments of up to $90 billion.
The five cities include Ahmedabad-Dholera Special Investment Region (SIR) in Gujarat, the Shendra-Bidkin Industrial Park city near Aurangabad in Maharashtra, the Global City in Gurgaon in Haryana, the Integrated Industrial Township in Greater Noida and the Integrated Industrial Township Vikram Udyogpuri near Ujjain in Madhya Pradesh, official sources told FE. They said the required land for these cities has already been acquired.
Interim budget 2014-15 had allocated R693 crore to the DMIC Project Implementation Trust (the nodal body for the project’s funding). This included R643 crore as grants to the trust and R50 crore for an exhibition-cum convention centre in New Delhi as part of the project. In 2012-13, the actual plan allocation for the trust was R411.4 crore. The 2013-14 Budget had a plan allocation of R507.8 crore to the trust.
The revised plan allocation to the trust in 2013-14 was Rs 303.81 crore.
Of the Rs 7,478 crore now being sought for this fiscal, Rs 3,000 crore each is to be used for development of the first phase of the Shendra-Bidkin Industrial Park and “activation area” in the Ahmedabad-Dholera SIR, the sources said. In the ‘activation area’, the plan is to build state-of-the-art infrastructure to “activate local commerce, enhance foreign investments and attain sustainable development”, they added.
Around Rs 750 crore has been sought for the Global City in Gurgaon, while Rs 617 crore will be needed for the development of Integrated Industrial Township in Greater Noida and Rs 59.5 crore for the Madhya Pradesh Vikramaditya Knowledge City, part of the project planned in Ujjain.
Elaborating on the plans, the sources said leveraging the Rs 617 crore meant for the Greater Noida township alone is estimated to