The commerce and industry ministry is revamping the Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) along the much-awaited Western Dedicated Freight Corridor to ensure that private players do not profit from funds provided by the government. A cabinet note floated by the commerce and industry ministry has proposed that DMICDC be converted into an implementation agency for what is India’s largest-ever infrastructure project and should not be the holding company that floats subsidiaries or special purpose vehicles to set up infrastructure such as power projects. Instead, the government will directly fund SPVs. Once the project is bid out, the gains would go back to the government, which may be reinvested.
The entity is executing the Rs 4.23 lakh crore project that involves development of a global manufacturing and trading hub comprising nine mega industrial zones of about 200-250 sq km, high speed freight line, three ports, six airports, a six-lane intersection-free expressway connecting Mumbai and Delhi and a 4,000 mw power plant. While the centre holds a 49 per cent stake in DMICDC, IL&FS holds another 41 per cent, while IDFC has the remaining 10 per cent.