Delhi-Mumbai corridor seeks Rs. 7,500cr allocation in budget.

Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) is seeking Rs. 7,500 crore for three smart city projects, an ambitious experiment, which is expected to get a boost from the Narendra Modi government as it embarks on revamping infrastructure projects in the country.

The demand for funds in the Budget is expected to be discussed soon, when the DMIC Trust meets, amid concerns from the finance ministry about the slow implementation of the project and questions over some of the agreements signed by the company executing the massive project that entails setting up of seven greenfield smart cities between Delhi and Mumbai. The investment in the project is estimated at over $100 billion, with the Japanese government agencies providing cheap financial support, while the Centre and the states will chip in with equity and land.

Sources said the equity will be used for the special purpose vehicle in Dholera in Gujarat, where a new city is planned, and a similar project in Shendra, 17 km from Aurangabad, in Maharashtra.

DMICDC had sought the Rs. 7,500 crore funding when the interim Budget was presented but the finance ministry turned down the plea, arguing that it can't be raising funds from the market when the projects are not ready. 'The government can't be borrowing at 9% and let someone sit idle with that cash,' said a senior finance ministry official.


TOI