Approval for development of trunk infrastructure for integrated industrial township at Vikram Udyogpuri, Ujjain, Madhya Pradesh in the Delhi Mumbai Industrial Corridor (DMIC) Project
No: ----- Dated: Jan, 20 2014
Approval for 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 (M.P.) in the Pithampur, Dhar Mhow investment region of the Delhi Mumbai Industrial Corridor (DMIC) project at an estimated project cost of Rs.808.60 crore for Stage 1 of the Project.
CCEA has also approved investment of Rs.59.50 crore as 50 percent equity contribution of DMIC Trust to the JVC for the Project and further investment of Rs.372.80 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 percent. The remaining 50 percent of the equity will be met by the State Govt. The balance funding required for trunk infrastructure will be met from internal accruals of the JVC.
The development of infrastructure industrial township at Vikram Udyogpuri is expected to attract private sector investments of around Rs.13,000 crore. The primary objectives 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".
In the first stage of the Project, the JVC consisting 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 JVC 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 JVC who will engage Transaction Adviser (s) for structuring and bidding out PPPable projects and monitoring the execution of the projects.
Background
The Pithampur, Dhar, Mhow investment region located 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 Govt. of MP, 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 has a total area of 443.7 hectares(1096.63 Acres).