Early-bird projects have been finalized for all the industrial corridor states. While bid documents are expected soon, the government has not released any specific timeline, say sources.

The governments of India and Japan are both financing the industrial development through a project development fund. The Indian portion is expected to be in the form of grants. The Japanese contribution is likely to be an untied loan from the Japan Bank for International Cooperation.

The Dedicated Freight Corridor Corp. of India Ltd. (DFCCIL)—the special-purpose vehicle formed to undertake planning, financing, construction, maintenance and operation of the entire rail project—plans to award the contract for the first phase of the Delhi-Mubai rail corridor by March. DFCCIL also has plans to build an eastern rail corridor, for a total of 3,300 km.

The Delhi-Mumbai industrial development’s largest stretches of land are in Rajasthan, with 39%, and Gujarat, with 38%. Smaller stretches of 10% each will be in Haryana and Maharashtra. Delhi and Uttar Pradesh share the 3% balance in the development's hinterland.

Plans call for developing seven of the corridors city centers in the first phase. To date, three have received government approvals.

City Funding Expected Soon

Funding for the cities is expected to be announced soon, says Talleen Kumar, joint secretary of the government’s Dept. of Industrial Policy and Promotion. The initial risk of investment would be borne by the government, which will create infrastructure including drainage, sewerage and roads, he says. Special-purpose funding mechanisms will be made for private participation in projects.

Gujarat is the first state on the development list. London-based Halcrow Group Ltd. UK has completed the feasibility study for the Dholera Special Investment Region, a major new economic hub located 100 km south of Ahmedabad in Gujarat. The study has identified locations in the region for industrial megaparks covering a gross land area of 10,000 hectares.

Development of Dholera’s industrial land is phased over a 30-year period. Phase one of the megapark covers an area of about 3,000 hectares. A township area also will be developed.

Japan's Ministry of Economy, Trade and Industry has delegated a "smart" community feasibility study to six Japanese consortiums. For example, Mitsubishi Electric Corp. is conducting an advanced feasibility study on the commercialization of a Gujarat-based community project with the Tata Group, Mumbai. The study is focusing on a platform that covers a smart factory, an energy management system, water and waste solutions, lithium-ion-battery applications and an energy storage system for electric vehicles, and a concentrated solar-power system. The consortium expects to submit a report by March.