After a three-year delay, the Centre and the Maharashtra government on Monday signed the state support agreement (SSA) and shareholders agreement (SA) for the first phase of the ambitious Delhi Mumbai Industrial Corridor (DMIC).
The first phase of the project entails an investment of Rs 17,391 crore ( Rs 173.91 billion) to cover 84 sq km of area in Aurangabad district of the underdeveloped Marathwada region.
Initially, 32 sq km will be developed with Maharashtra government’s 51 per cent equity and 49 per cent to be held by the government of India.
These agreements were signed on Monday in the presence of Chief Minister Prithviraj Chavan and Union Minister of Commerce and Industry Anand Sharma.
The Maharashtra government’s equity will be towards land, while the Government of India will contribute funds for the development of trunk infrastructure.
In addition, the Centre will pump in Rs 3,000 crore (Rs 30 billion) for each industrial township project.
Phase-I covers Shendre Bidkin Industrial City, multi modal logistics park at Karnad, exhibition-cum-convention centre at Aurangabad and water supply scheme for Shendra. These projects are expected to create 330,000 jobs.
The state-run Maharashtra Industrial Development Corporation has already acquired 3,200 hectares through the consent route and the compensation of Rs 23 lakh per acre is being paid.
The compensation is almost 50 per cent more than what has been recommended in the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act.
This apart, project-affected persons will be provided 15 per cent of developed land.
Chavan and Sharma said the project will drive growth in and around Aurangabad. Sharma said that of the total six states through which DMIC passes, Maharashtra is the first state to enter into SSA and SA.
According to Chavan, a total of 55,000 hectares covering eight districts will be required for the completion of phase-I and phase-II in Maharashtra.
He said the Japanese government and its banks and financial institutions have already offered loan for these projects.
Phase-II, which is expected to enhance the state's manufacturing capability, will include Dighi Port Industrial Area, Dhule mega industrial park, Nashik-Sinnar-Igatpuri investment region, multi-modal logistics parks and greenfield mega city in Ahmednagar.
DMIC CEO Amitabh Kant said all the necessary approvals have been acquired. He added two gas-based power projects have been proposed in Indapur and Dighi. Kant noted that DMIC project in Maharashtra will cover 29 per cent area of the state and 18 per cent project influence area.
The proposed projects in phase-I and II are expected to generate 3.8 million manufacturing jobs in the state and industrial output worth Rs 20 lakh crore (Rs 20 trillion) by 2042.