DMIC project gets ₹400 crore allocation in budget
With the state government sanctioning ₹400 crore for land acquisition under the DMIC project, the project is finally set to move forward in Rajasthanjaipur Updated: Feb 13, 2018 21:12 IST
With the state government sanctioning ₹400 crore for land acquisition under the Delhi-Mumbai Industrial Corridor (DMIC) project, the project is finally set to move forward in Rajasthan.
Chief minister Vasundhara Raje made the announcement during her budget speech on Monday.
“The process of acquisition of about 500 hectares land in five villages in Alwar district will get underway once the notification is issued,” an official familiar with the matter said.
The state government had initiated the land acquisition process five years ago, but the process was stuck since then due to lack of funds. The government had initially earmarked 1,425 hectare land in 10 villages in Bhiwadi and Nimrana region in Alwar district to be acquired at an average per hectare cost of ₹1.91 crore or ₹30 lakh per bigha amounting to a total cost of ₹2,732 crore. However, earlier this year, the cabinet decided to de-acquire 993 hectare land in five villages of Gugalkota, Choubara, Jaunayachakhurd and Shajahanpur and Bawar. A notification in this regard is yet to be issued.
The $100 billion (₹6,42,550 crore) project is being built along the high-speed DFC that would reduce the time for goods movement between Dadri near Delhi to Jawaharlal Nehru Port in Mumbai from current 14 days to about 14 hours.
A look at the progress in other states reveals that states like Gujarat, Maharashtra, Madhya Pradesh, Haryana and Uttar Pradesh have already formed the special purpose vehicle (SPV) and made significant progress in implementing the project. However in Rajasthan, apart from the master plan notification, there is little progress on the ground.
The land acquisition process for Khuskhera-Bhiwadi-Neemrana (KBN) industrial smart city started in 2012 and in April 2015, the government was able to declare compensation amount.
While the farmers were initially elated at the high compensation amount (as per new Land Acquisition Act 2013), at present they are unable to sell their land to other people as the government has imposed prohibition orders. However, after more than two years, the government is yet to disburse the amount.
The state government has been negotiating with financial and housing institutions for loans for more than a year, but nothing has come out of it.
Under DMIC, the state governments have to acquire the land for the projects and form SPVS with DMIC Trust for each project. In each SPV, while land becomes the equity of the state, DMIC Trust provides funds as part of its equity to develop the trunk infrastructure. Once the land is acquired and trunk infrastructure gets developed, the smart industrial hubs will be open for both domestic and international investors.
First Published: Feb 13, 2018 21:12 IST