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Cabinet clears Delhi-Mumbai corridor involving $90 bn

August 17, 2007 12:34 IST

The government on Thursday approved the first phase of the ambitious Delhi-Mumbai Industrial Corridor project, which envisages a total investment of over $90 billion during the next decade, with assistance from Japan.

The Union Cabinet approved the DMIC project outline on the eve of the visit of Japanese Prime Minister Shinzo Abe, Information and Broadcasting Minister P R Dasmunshi told reporters here.

The Cabinet approved the organisation structure of the project, including the setting up of an apex authority chaired by the Union finance minister.

The Cabinet also approved the formation of DMIC Development Corporation for which the Department of Industrial Policy and Promotion will initiate immediate action.

The Cabinet also approved setting up of the 1,483-km Dedicated Freight Corridor between Delhi and Mumbai for high-speed connectivity for high-axle load wagons, he said. The construction on the freight corridor would begin during 2009-09 and completed by 2012, Dasmunshi added.

The development of DMIC Phase-I, which will cover six states of Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra, will coincide with completion of the DFC project. As many as 100 to 120 projects are likely to come up under the DMIC alongside the 150-km DFC.

Under Phase-I, six investment regions of more than 200 sq km each and six industrial areas of about 100 sq km each would be developed. These regions are Dadri-Noida-Ghaziabad, Manesar-Bawal (Haryana), Khushkhera-Bhiwadi-Neemrana (Rajasthan), Pitampura-Dhar-Mhow (MP), Bharuch-Dahej (Gujarat) and Igatpuri-Nashik-Sinnar (Maharashtra).

The industrial areas shortlisted for development under the project are Meerut-Muzaffarnagar (UP), Faridabad-Palwal (Haryana), Jaipur-Dausa (Rajasthan), Neemach (MP), Vadodara-Ankleshwar (Gujarat) and Alewadi/Dighi (Maharashtra).

The Cabinet Committee on Economic Affairs also approved the execution of new railway line and gauge conversion projects at a total cost of Rs 2796 crore (Rs 27.96 billion). These include the 101-km Bhojhipura-Pilibhit-Tanakpur gauge conversion at a cost of Rs 145 crore (Rs 1.45 billion). It is likely to be completed by 2009-10.

The new lines are Chota Udepur-Dhar, Chandigarh-Baddi, Bihta-Aurangabad via Anugraha Narayan Road, Bariarpur- Mananpur via Kharagpur and Barahat, Sultanganj-Katuria via Asarganj and Belhar and Rayadurg-Tumkur.

Dasmunshi said all these projects are likely to be completed by 2013. The projects had been approved "in-principle" earlier and announced in the railway minister's Budget speech this year.

Other decisions

  • Nod to conclusion of a Bilateral Investment Promotion and Protection Agreement with Macedonia.
  • Extradition treaty between India and Portugal, signed earlier this year, approved.


BS Reporter in New Delhi