Cabinet approves activation of the Dholera Special Investment Region in Gujarat in the DMIC Project

By Accommodation Times News Services

Cabinet meetThe Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved the construction of Trunk Infrastructure components in the activation area of 22.5 of  Phase-1 the Dholera Special Investment  Region (DSIR) in Gujarat in the Delhi Mumbai Industrial Corridor (DMIC) Project.

The total cost of the project is estimated to be approximately Rs. 2784.83 crore which will be invested by DMIC Trust as equity in the city/node SPV.

The trunk infrastructure components are:

  • Roads and Services,
  • ABCD building complex (Phase-1),
  • Water Treatment Plant (WTP),
  • Sewage Treatment Plant (STP) and
  • Common Effluent Treatment Plant (CETP)

Trunk Infrastructure development is proposed to commence in FY 2015-16 for the above mentioned infrastructure projects and is likely to be completed by FY 2018-19 after all necessary approvals.  The primary objective of developing the Activation Area is to trigger developmental activities in DSIR and attract local and global investments. This Activation Area has been selected due to maximum concentration of Government Land which will facilitate the early take off of various infrastructure components in DSIR.

The Activation Area is envisaged to act as a catalyst for further investments in DSIR. The presence of basic trunk infrastructure facilities (e.g. roads and services, water, power, sewerage, drainage, STP, CETP etc.) will enable the development of Phase-1 of the DSIR. Also, this area constitutes the northern half of the DSIRDA land and provides very good connectivity with the other Town planning Schemes of the area. The provision of Roads and Services will enable accessibility to this area and will ensure that serviced land is available for investors to start their development activities in the Activation Area.

As per the institutional and financial structure approved by the Government of India for DMIC project, the land for the project will be contributed by the State Government as their equity while the contribution of DMIC Trust by way of equity and debt will be made in form of cash for implementing various trunk infrastructure components subject to a ceiling of Rs. 3000 crores. 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 Gol and the State Government required for the trunk infrastructure in subsequent phases shall be met from the internal accruals of the SPV and debt raised by the SPV as may be required.

DSIR has been planned over an extensive area of land measuring approximately 920 sq km encompassing 22 villages of Dhandhuka and Barwala Taluka in the Ahmedabad District. This node is strategically located near the industrial cities of Vadodara, Ahmedabad, Rajkot, Surat and Bhavnagar urban agglomerations. DMICDC, with the support and partnership of the Government of Gujarat, plans to create an economically and socially balanced new-age city with world class infrastructure and high quality-of-life standards and sustainability in the urban form.

The developable area in DSIR is divided into six Town Planning Schemes. Town Planning Schemes 1 and 2 cover the development in Phase-l. Town Planning Scheme 1 (TP 1) covers an area of approximately 51 sq km and Town Planning Scheme 2 (TP 2) covers an area of approximately 102 sq km. TP 1 contains a total length of roads of approximately 186 km, with road widths varying from 12m to 70m. TP 2 contains a total length of roads of approximately 340 km, with road widths varying from 12 m to 70 m. Services and utilities running within the road reserves will include storm water drainage, water supply, sewerage, power, telecom and gas.

It is intended to implement the roads and services within Town Planning Schemes 1 and 2, which also includes river training & bunding for flood management, in a phased manner. For practical implementation purposes, TP2 is broken down into two packages; the area to the west of the Central Spine Road (SH6) is TP2 (West), and the area to the east of the Central Spine Road (SH6) is TP2 (East). TP2 (East) covers an area of approximately 57.41 sq km and TP2 (West) covers an area of approximately 43.11 sq km with an area of 2.3 sq km falling under the Right of Way for the Expressway.

Since the entire trunk infrastructure of TP2 cannot be implemented in one go, a phased approach has been adopted and an Activation Area of 22.5 sq km has been identified which would act as catalyst for further investments and will provide a base for taking up development of further phases. The Activation Area has been carved out of TP2 (East) (18 sq km) and part of Town Planning Scheme 4 (4.5 sq. km) based on the maximum availability of Government Land. The area has approximately 72 km of roads and has an optimum mix of land uses with the industrial allocation being the maximum.

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