Japan quake may affect industrial corridor plan
Less than a week after the Uttar Pradesh government formed a high-powered team to finalise and execute Delhi Mumbai Industrial Corridor (DMIC) projects with financial aides from Japan, the massive earthquake and tsunami in the country has led to uncertainty over some of the big-ticket infrastructure projects.delhi Updated: Mar 17, 2011 00:38 IST
Less than a week after the Uttar Pradesh government formed a high-powered team to finalise and execute Delhi Mumbai Industrial Corridor (DMIC) projects with financial aides from Japan, the massive earthquake and tsunami in the country has led to uncertainty over some of the big-ticket infrastructure projects.
The corridor in UP has two nodes — Dadri-Noida-Ghaziabad Investment Region and Meerut-Muzaffarnagar Industrial Area.
Sources in the state government and DMIC hint the Japan International Cooperation Agency (JICA), responsible for loans and grants to other nations, may go for a major rethink in the wake of huge losses caused by the calamity and requirement of never-before infrastructure building exercises there.
The state industrial development department says it has gotten into a process of assessment. DMIC officials say there might be some chances of delay but the project in totality will not be affected much.
“DMIC is a global partnership project and Japan does have a role to play but it (the role) is still limited. It’s too early to expect Japan to react to the fate of DMIC projects,” a senior official said.
About 200km of the 1,500-km-long corridor falls in UP. The state is also important for the starting junction of both western and eastern freight corridors fall at Dadri in Greater Noida.
A Noida authority official, who is in touch with the state government's high-powered team, said, “Japan will bounce back in a year or so, while the DMIC projects will take years in execution. On the other hand, Japan, once it has gotten over the process of rebuilding, may actually speed up projects in India for faster recovery.”
A year after signing a memorandum of understanding with the DMIC Development Corporation (DMICDC), which will develop a dedicated freight corridor passing through six states, the Uttar Pradesh government last week formed a high-level committee to speed up the process.
The committee has as members chairmen of authorities of Noida, Greater Noida and Yamuna Expressway, district magistrates of Gautam Budh Nagar, Ghaziabad and Bula-ndshahr and a special secretary from the Uttar Pradesh Industrial Development Dep-artment. It will identify projects and coordinate with the Centre.
The state government recently discussed the DMIC project worth thousands of crores of rupees and said the central government would initially provide R2,500 crore to kickstart the projects. UP’s industrial development principal secretary VN Garg has formed the committee to see if the government actually needs to form an authority or a company for execution of the projects.
The corridor will fuel never-before infrastructural growth in the region. As part of the project, Noida will also get it maiden railway line.