New Delhi: Japan will invest $10 billion in next five years in the Delhi–Mumbai Industrial Corridor (DMIC), Commerce Minister Kamal Nath said at a CII meeting here on 2 July. He added that the DMIC project, with an estimated investment of $ 90 billion is at an advanced stage of finalization. “The route of DMIC should include Madhya Pradesh majorly in the route along with the existing six states”, Nath said. DMIC also covers Delhi, Haryana, Rajasthan, Gujarat and Maharashtra.
He said that land for this project will be acquired on voluntary basis and the interest of people will be considered during the implementation. DMIC project will have world class infrastructure with employment generation for 3 million people in India, he added.
Workers construct a steel frame of a support structure at an elevated construction site, New Delhi, 19 Jan 2007
India is a very large consumer market for Japan and can be complimented with Japanese technology, said the minister. He further said that forthcoming visit of Japanese Prime Minister Shinzo Abe will further enhance bilateral relationships between the two countries.
Workers work on an elevated construction site, New Delhi
“Japan will provide all possible assistance for DMIC and as the project will trigger new industrial revolution in India”, said Akira Amari, Minister of Economy, Trade and Industry, Japan. The DMIC project will focus on wide industrial development in coordination with infrastructure development, environmental consequences and human resource development, said Mr. Amari.
“Japan is building a platform where India can become the gateway of export to UK, Mid-East and Africa”, said Amari. Japan will promote investment by small and medium Japanese companies and a task force will be created to implement the investment for the project, he added.
Ajay Dua, secretary, Ministry of Commerce and Industry said the project will focus on regional development approach instead of isolated pockets and will provide high quality connectivity to each region with road, rail, port, air and telecom, he said. He added that market driven nodes are proposed in two categories where investment regions will have minimum area of 200 sq km and industrial area of 100 sq km.
Dua mentioned that DMIC will consist of an apex steering authority, headed by Prime Minister of India with concerned central ministers and chief ministers of respective DMIC states. A corporate entity, Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) will be formed to undertake planning of the project, development of its various components, coordinating with all stakeholders, monitoring of implementation and raising all finances.
It has been proposed that project preparation can commence after the approval of the Government of India and Japan during Prime Minister Abe’s visit in August 2007 so that actual node development work can commence in January 2008. Mr. Dua also said that a project development fund will be set up with an estimated corpus $250 million with assistance of Governments of Japan and India and other foreign investments.