Ministry seeks Rs 18,500 cr to build 7 cities

Industry Ministry has sought Rs. 18,500 crore (Rs. 185 billion) to develop seven cities around the Delhi-Mumbai Industrial Corridor, that will criss-cross six states.

The $90-billion DMIC project, planned in 2006 comprising - Uttar Pradesh, Haryana, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh - is being developed in collaboration with Japan as a manufacturing and trading hub.

The cities would come up along Delhi-Mumbai Dedicated Rail Freight Corridor, which is under implementation.

The Department of Industrial Policy and Promotion has obtained views of most of the ministries.

"Soon we will prepare the Cabinet note seeking funds," a source said.

Out of the total amount, Rs. 17,500 crore (Rs. 175 billion) would be used to create infrastructure like internal roads, solid waste disposal, flood management, storm water and sewerage system, bus and rail-based public transportation system and landscaping.

For preliminary work of the project (as a Project Development Fund), DIPP has sought Rs. 1,000 crore (Rs. 10 billion).

New cities and sub-cities will be developed around the industrial nodes of Kushkhera-Bhiwadi-Neemrana in Rajasthan, Dadri-Noida- Ghaziabad in Uttar Pradesh, Bharuch-Dahej in Gujarat, Igatpuri-Nashik-Sinnar in Maharashtra and Pitampura-Dhar-Mhow in Madhya Pradesh.

Later, 17 more cities are planned to be developed on a similar pattern.

The money from the Centre would be both in the form of debt and equity which would be ploughed into the Delhi Mumbai Industrial Corridor Development Corporation Limited, which is a joint venture between the government, IL&FS and IDFC.

"This investment is necessary to create basic infrastructure so that industrial and trading activities can come up," the source said.

This money has to be put in by the government even before public-private-partnership business model can be developed, the source added.

About Rs. 2,500 crore (Rs. 25 billion) would be spent on each city to develop basic infrastructure.