Friday, April 10th, 2020

DMIC to Create Strong Economic Base With Globally Competitive Environment to Enhance Investments

Zakir Hussein,, INVC,, Delhi,, During the present calendar year (i.e. between January-October, 2010), FDI equity inflows of US $ 17.37 billion have been received.   During the first seven months of the present financial year, 2010-11 (i.e. during April-October, 2010), US $ 12.40 billion have been received.  During the financial year 2009-10, FDI equity inflows of US $ 25.89 billion were received. Government undertook a major exercise on consolidation of all existing regulations on FDI, with the aim of integration of all such regulations,  into one consolidated document, so as to reflect the current regulatory framework. The final document in this regard was released on 31 March, 2010. Such consolidation would ensure that all information on FDI policy is available at one place, which is expected to lead to simplification of the policy, greater clarity and understanding of foreign investment rules among foreign investors and sectoral regulators, as also predictability of policy.   It was decided that the consolidated circular would be issued every six months to ensure that FDI policy is kept updated. It was decided to commence stakeholder discussions on various important issues under FDI Policy. In this regard, five Discussion Papers were released by the Department of Industrial Policy & Promotion, on various aspects of FDI policy, for comments. These Discussion papers were on Foreign Direct Investment (FDI) in the Defence sector, FDI in Multi-Brand Retail Trading, Approval of foreign/ technical collaborations in case of existing ventures/ tie-ups in India, Issue of shares for considerations other than cash and Foreign Direct Investment in Limited Liability Partnerships. The consultation process has been completed in all cases. DELHI-MUMBAI INDUSTRIAL CORRIDOR DMIC aims at creating strong economic base with globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance investments and attain sustainable development.   Consultancies for preparation of Perspective Plan of entire DMIC region and for preparation of Development Plans of individual Investment Nodes in all the six DMIC States have been awarded.  Perspective Plan for overall DMIC Region has been completed.   Site near Dhawlapuri, Ahmednagar in Maharashtra has been finalized for Greenfield Integrated Township.  The Draft report of the Concept Master Plan for the Township has been submitted to the Government of Maharashtra for their comments.  The draft pre-feasibility studies for two expressways, namely Indore-Ahmedabad and Pune-Nashik have been reviewed. The same have been shared with the National Highway Authority of India (NHAI) for their observation and their willingness to take up the projects.  As suggested in the Perspective Plan, Power Projects have been taken up for development under the DMIC Project.  Detailed Project Reports on 4 sites (Guna in MP, Indapur & Ville-Bhagad in Maharashtra & Vaghel in Gujarat) have been completed. The Environmental Impact Assessment Studies at project sites have been completed. Two new power projects have been identified at the following locations:  i) Rajpur Shahpur, Distt. Mehsana, Gujarat and ii) Bagidora Tehsil, Distt. Banswara, Rajasthan.  Site investigation studies are being planned in the above two locations.  The first stage approval for the Terms of Reference (TOR) for all the six power projects has been accorded by the Ministry of Environment and Forests. The key terms of Gas Supply Agreement has been signed with M/s Gas Authority of India Ltd. (GAIL) for sourcing and supply of gas for the four power projects and a Memorandum of Co-operation has also been signed with M/s GAIL. For gas sourcing and supply, discussions on draft gas supply agreement has been initiated. NATIONAL MANUFACTURING POLICY The objectives and main features of the proposed National Manufacturing Policy are:  (a) to Increase sectoral share of manufacturing in GDP to 25% by the year 2022; (b) to double the current employment level in the sector; (c) to increase the level of domestic value addition; (d) to enhance global competitiveness of the sector; and (e) to make the country an international manufacturing hub.  The policy aims to create world class industrial infrastructure, a conducive business environment, an ecosystem for technological innovation – especially in the domain of green manufacturing, institutions for industry relevant skill upgradation, and mechanisms for easy access to finance for entrepreneurs. The establishment of National Manufacturing and Investment Zones (NMIZs) will be a major cornerstone of the industrialization strategy. They will be developed as integrated industrial townships with state-of-the-art infrastructure and land use on zoning basis.  NMIZ would be large areas of at least 2000 hectares in size, to be developed and managed by Special Purpose Vehicles (SPVs), with the requisite eco-system.  Each SPV will undertake measures for the development, growth, operation and management of the NMIZ.  Accelerated growth of manufacturing industries will be augmented within the NMIZs and outside through appropriate policy support. [caption id="attachment_21618" align="alignnone" width="492" caption="DMIC to Create Strong Economic Base With Globally Competitive Environment to Enhance Investments "]FDI Inflows Touches US $ 17.37 Billion During Jan-Oct 2010 [/caption]

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