Dedicated freight corridor

By S P Tulsian

 

Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) is implementing US $ 90 billion 1,483 km. dedicated freight corridor with investment and industrial region. To implement this corridor, the government is planning to offer upto 51% stake to financial investors, for which, IDFC, IL&FS, SREI Capital and IFCI have shown active interest and are in talk with the government to pick up substantial stakes in the company.

 

The industrial corridor would be passing form six states viz. Uttar Pradesh, Delhi, Haryana, Rajasthan, Gujarat and Maharashtra, and hence, each state would be given 4% stake, with 25% remaining with the centre. The DMICDC steering authority is chaired by Finance Minister P. Chidambaram. The committee, include officials from commerce, labour, food processing, industry and planning commission.

 

As per the plans, the work on the corridor will be carried out in two phases, with the schedule on first phase being set during 2008 – 12 while second phase would be from 2012 – 16. The fist phase shall have one investment region and one industrial region, each of 200 sq. km., in each state, except Delhi, as sufficient land is not available in Delhi. The freight corridor would run parallel to Golden Quadrilateral National Highway.

 

The shortlisted investment regions in various states are Dadri – Noida – Ghaziabad for general manufacturing, Manesra – Bawal for auto components, Khushkhera – Bhiwadi – Neemrana for general manufacturing, Pitampura – Dhar – Mhow, Bharuch – Dahej for petroleum and chemicals and Igatpuri – Nashik – Sinnar for general manufacturing. Industrial area were earmarked at Meerut – Muzzafarnagar for engineering, Faridabad – Palwal for manufacturing, Jaipur – Dausa for marble, leather & textiles while Neemuch – Nayagaon in M.P., Vadodara – Ankleshwar in Gujarat and Alewadi, Dighi in Maharashtra.

 

The final plans for these would get ready in a month's time, incorporating special economic zones, industrial estates, logistic parks and knowledge centres with requisite power and telecom infrastructure for each zones. In the past, political heavyweights used all their muscles to have these zones created in their constituencies, without even caring for logistics and costs. But finally, things are coming in shape and this is a big push for accelerating infrastructure growth, for which US $ 470 billion is targeted in Eleventh Plan Period between 2007 – 20012.

 

Japanese investors have also shown great interest in this dedicated freight and industrial corridor and Japanese investors are also likely to get accommodated in the 51% slice. Once this corridor takes off, probably it would be a big booster for the government, to take up dedicated corridor between Delhi and Kolkatta.

 

Public Private Partnership (PPP) model has proved to be the best model for development of sea port, airport, power project, roads etc. and hence replicating the same for corridor seems to be the most sensible and pragmatic move.

 

All these infrastructure development, in the past were not taken off, due to paucity of funds, as all these were solely executed by the government. Having experienced success in PPP model, the government has been encouraged to take-up mega project of US $ 90 billion, which would enable the country to have sustainable GDP growth in double digit from the next year or so, over next 8 – 10 years.

 

An excellent and timely move by the government.