The state government has enacted a legal framework for the SIR – The Gujarat Special Investment Region Act – 2009. It has come into effect from 6th January, 2009. This shows the commitment of the Government to set up world-class hubs of economic activity on the lines of fastest growing countries of the world.
The SIR Act, inter alia, provides for following matters :
The Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) is a planned industrial development project between India’s capital – Delhi and its financial hub – Mumbai. It is one of the world’s largest infrastructure projects with an estimated investment of USD 90 billion and is planned as a high-tech industrial zone spread across six states, over a 1,500 km long Western Dedicated Freight Corridor which serves as its backbone.
Development plan aims at the creation of an economically and socially balanced, new age city with world class infrastructure and high quality of life. Adoption of sustainable approach across key components such as transportation, waste recycling, overall urban form and resource efficiency from the cornerstones of this plan.
The developmental planning for DMIC aims to achieve certain end results with implementation that would ensure realisation of an envisaged vision for the project, leading to economic development.
Government of India has incorporated a special purpose vehicle, Delhi Mumbai Industrial Corridor Development Corporation (DMICDC), specially envisaged to coordinate DMIC Project Development, Finance and Implementation, headed by a full time Chairman and Directors and having representation from the Government of India and Financial Institutions.
An apex authority has been constituted under the chairmanship of Union Finance Minister with concerned Central Ministers and Chief Ministers of respective DMIC States as members to provide overall guidance for planning and issue necessary approvals.
DMICDC will undertake project development activity for various central government projects and also help in assisting state governments. DMICDC will be responsible for assisting state governments to raise finances on the basis of a sovereign guarantee. The corporate entity will have a shell structure with 49% contribution by GOI and the remaining by Financial Institutions and other infrastructure organizations.
DMICDC will also act as a pass-through entity for specific projects and raise a Project Development Fund (PDF) from GOI, GOJ and FIIs. The PDF is proposed to be used as a revolving fund, specifically for undertaking project development activities (e.g. DPR preparation etc.) and shall be recovered from the successful bidders. This fund will also ensure availability of uninterrupted funds for various preparatory activities. The designatories of respective State Governments and the DFC implementing agency could be represented as Directors on the Board of DMICDC.
It is envisaged that funding for DMIC project could be either through nodal agencies (budgetary/extra budgetary provisions) or through Viability Gap Funding/Long term soft loans extended to the Project SPVs. DMICDC would facilitate this process by using a sovereign guarantee provided by the Central government. Moreover, the SPVs could also borrow on their own balance sheets or project recourse basis.
Gujarat Infrastructure Development Board (GIDB) headed by the Hon. Chief Minister of Gujarat will be the Apex Authority. GIDB will delegate powers and functions to its Executive Committee headed by Hon. MOS (Ind). Core functions of the Apex authority like approvals & modifications in development plan, town planning schemes and general regulations shall not be delegated to any committees.
For the development of Dholera SIR, the Government of India (through DMIC Trust) and the Government of Gujarat (through DSIRDA) formed a Special Purpose Vehicle (SPV) called ‘Dholera Industrial City Development Ltd.’ (DICDL) on Jan 28, 2016. The SPV is made up of a 51% stake of the Government of Gujarat through DSIRDA and a 49% stake of Government of India through DMIC Trust.
DICDL has been formed with an initial capital of INR6,000 crore out of which approximately INR 900 crore has already been released by the DMIC Trust against equity contribution for Activation Area work. The equity on part of the Government of Gujarat through DSIRDA is in form of land, which is allocated to SPV DICDL. The DMIC trust has already approved the activation trunk infrastructure project of INR 4,400 Crores.
Gujarat has a strategic location – it is well connected to the major cities of the world, both by air and sea routes. The state has direct international flight connectivity to cities across Europe, Middle East, East Asia and America. Gujarat has a coastline of 1,600 km with 42 ports that connect to major sea-based trade routes and trade centres like Middle East, West Europe, Asia and upcoming destinations on the African Continent. The state also acts as a gateway to landlocked states of India connecting to them by road, rail and air thereby boosting their trading opportunities.