Home >Industry >Infrastructure >Nod to 26% Japan stake in DMICDC

New Delhi: The cabinet on Thursday approved giving 26% equity stake in Delhi-Mumbai Industrial Corridor Development Corp. Ltd (DMICDC) to Japan in an attempt to ensure the commitment of that country’s government to the mammoth infrastructure project.

Under the new structure, the Indian government will have a 49% stake, while the Japan Bank for International Cooperation will have 26%. The remaining 25% will be shared by state-owned financial institutions such as Housing and Urban Development Corp. Ltd, India Infrastructure Finance Co. Ltd and Life Insurance Corporation of India.

The cabinet also approved the proposal for conversion of debentures held by the government in Industrial Finance Corporation of India (IFCI) into equity. After conversion, the government’s stake in the company will increase to 55.57%. Adding the stake of banks and financial institutions, the government’s stake will move up to 68.31%, making IFCI a government company. The government will convert 923 crore of optionally convertible debentures in IFCI into equity at par.

The cabinet committee on economic affairs (CCEA) on Thursday cleared the award of five blocks under the ninth round of the New Exploration Licensing Policy. It also decided to cancel the licence awarded to Sankalp Oil and Natural Resources Ltd.

CCEA also approved the proposal of South Africa-based group Sanlam picking up a 26% stake in Shriram Capital Ltd.

The cabinet also approved a plan of the human resource development ministry to raise grant-in-aid worth 3,315 from external agencies such as the World Bank and the UK’s Department for International Development for its Rashtriya Madhyamik Shiksha Abhiyan.


Utpal Bhaskar, Elizabeth Roche and Prashant K. Nanda contributed to this story.

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