The union cabinet on Monday approved the development of trunk infrastructure for integrated industrial township at Vikram Udyogpuri, Ujjain, Madhya Pradesh in the Delhi Mumbai Industrial Corridor (DMIC) Project.
The cabinet committee on economic affairs has approved the development of trunk infrastructure for the integrated industrial township at Vikram Udyogpuri near Ujjain, Madhya Pradesh (MP) in the Pithampur, Dhar Mhow investment region of the Delhi Mumbai Industrial Corridor (DMIC) project at an estimated project cost of Rs808.60 crore for Stage 1 of the project.
The CCEA also approved investment of Rs59.50 crore as 50 per cent equity contribution of DMIC Trust to a joint venture for the project and further investment of Rs372.80 crore as debt with a 10 year moratorium from the start of the project and 12 year repayment at an annual interest of 8.5 per cent.
The remaining 50 per cent of the equity will be met by the state government. The balance funding required for trunk infrastructure will be met from internal accruals of the joint venture company.
The development of infrastructure industrial township at Vikram Udyogpuri is expected to attract private sector investments of around Rs13,000 crore.
The primary objective of development of the township is to initiate industrial development, enabling the Pithampur, Dhar-Mhow investment region to take off, while providing essential infrastructure and services to support establishment of institutions that would create the skilled and employable work force.
It will drive manufacturing and act as a catalyst for the growth of industrial development of the DMIC region by attracting skilled human resources.
In addition to significant economic benefits the project will also have a multiplier effect on the region, including employment generation and revenue generation.
The development of the integrated industrial township mainly targets non-polluting industries and knowledge related uses on the lines of a "green city".
The first stage of the project, the joint venture consisting of the subsidiaries of the government of Madhya Pradesh and DMIC Trust would take up creation of trunk infrastructure for the development of the township at Vikram Udyogpuri.
In the second stage, the joint venture company will invite private developers to develop, operate and maintain real estates and commercial development on PPP basis as well as operation and maintenance of selected trunk infrastructure.
Development of trunk infrastructure will be undertaken on design-build basis by the joint venture which will engage transaction advisers for structuring and bidding out projects that can be brought under the PPP model and monitoring the execution of the projects.
The Pithampur-Dhar-Mhow investment region is one of the eight investment regions / industrial areas identified for development in the first phase of the DMIC project.
The Delhi Mumbai Industrial Development Corporation (DMICDC), in consultation with the government of Madhya Pradaesh, has identified the development of the integrated industrial township at Vikram Udyogpuri, Ujjain as an early bird project to drive non-polluted industries and engage related sectors in the region. The Vikram Udyogpuri township site covers a total area of 443.7 hectares (1096.63 acres).