New Delhi, Nov 16: The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi has given its approval to the following:
(i) Construction of trunk infrastructure for Phase II of Part I of Shendra Bidkin Industrial Area (SBIA) namely the Bidkin region spread across 31.79 sq km (3,179.20 ha) at an estimated project cost of Rs. 6,414.21 crore;
(ii) Investment of Rs. 2,397.20 crore as equity of DMIC Trust in the City/ Node SPV in a phased manner; and
(iii) Issuance of EPC tenders for selection of contractors for various packages of trunk infrastructure in a phased manner.
In accordance with the institutional and financial structure approved by the Government of India for DMIC projects, the project will be implemented through Aurangabad Industrial Township Limited (AITL). It is a Special Purpose Vehicle (SPV), constituted as Joint Venture between DMIC Project Implementation Trust Fund (DMIC Trust) and MIDC. DMIC Trust has already released its share of equity of Rs. 602.80 crore in the company towards development of 8.39 sq km in Phase I of Part I of Shendra Bidkin Industrial Area.
Following five trunk infrastructure components are being considered for the Bidkin Industrial Area of 31.79 sq km, as part of Phase-ll development of the Shendra Bidkin Industrial Area (SBIA) near Aurangabad, Maharashtra:
i. Roads and Utility Services;
ii. Pipe line from Jayakwadi Dam to Bidkin and Water Treatment Plant (WTP);
iii. Information, Communication and Technology (ICT) works;
iv. Sewage Treatment Plant (STP) and Common Effluent Treatment Plant (CETP), Solid Waste Management (SWM); and
v. Area Landscaping for Bidkin.
Development of trunk infrastructure in Phase-II (Bidkin Region) of SBIA will be undertaken in three phases commencing from FY 2016-17 and is likely to be completed by FY 2020-21.
The estimated cost of the five packages of trunk infrastructure is Rs.6,414.21 crore. As per the institutional and financial structure approved by the Government of India for DMIC project, land for the project will be contributed by the State Government as their equity. DMIC Trust will implement various trunk infrastructure components subject to a ceiling of Rs.3,000 crore. Out of this, an equity of Rs.602.80 crore has already been released for phase I earlier by the DMIC Trust. Balance Rs. 2,397.20 crore will be released for phase 2 of Part I. The value of land brought in by the State Government would be the equity contribution of the State Government. The balance funding, i.e., funding over and above the contributions from the Gol and the State Government, required for the trunk infrastructure shall be met from the internal accruals of the SPV/ debt raised by the SPV as may be required.
Investment in the development of trunk infrastructure is essential for the creation of a greenfield smart industrial city. The response for Phase 1 of part I of SBIA has been very encouraging and industries in automobile, engineering, electronic system design and manufacturing (ESDM) sectors have expressed their interest. Development of the SBIA as a manufacturing hub will generate a series of direct and indirect benefits through employment, enhanced GDP, development of ancillary units and spin-off of socio-economic benefits. Inclusion of sustainable and green building practices will create benchmarks for urban development in the country. The 31.79 sq km of land for Bidkin Industrial Area has been acquired by Maharashtra Industrial Development Corporation (MIDC) and is in possession of MIDC.
Source: PIB
