DMIC likely to draw $100 bn investment
The ambitious Delhi-Mumbai Industrial Corridor (DMIC) project has opened up an array of investment opportunities for foreign players, private equity funds and domestic investors.business Updated: Oct 07, 2010 00:15 IST
The ambitious Delhi-Mumbai Industrial Corridor (DMIC) project has opened up an array of investment opportunities for foreign players, private equity funds and domestic investors.
Speaking at a CII event to explore business opportunities in the proposed project Amitabh Kant, CEO and managing director of Delhi Mumbai Industrial Corridor Development Corporation, said a large number of projects that range from road works and waste management to power generation and development of airports would come up in the public-private-partnership (PPP) model.
“The total investment entailed in the project is estimated to be in the range of around $100 billion (R4,43,000 crore) that will be spread across many years,” said Kant. He added that the need is to create long-term debt instruments of the tune of 18-20 years.
The first phase of the project is expected to come up by 2018.
Elaborating on the government’s role for DMIC, Kant said that the trunk infrastructure would be funded by the government, which is approximately 35 per cent of the overall funding requirements while the rest would be funded through a PPP mode, depending on the viability of the projects. He further stated that the government would get all the clearances for the project before they are offered to the private sector.
Kant added that for the six power projects that have been envisaged under DMIC, all the approvals have already been obtained. In addition, a solar power project, two airports in Neemrana and Dholera, a mass rapid transport system and water recycling projects are the integral part of DMIC.
“In the next 6-7 months DMIC will unfold huge opportunities for various players across the value chain in power, transportation, equipment providers and internal infrastructure,” said Kant