The $100 bln Delhi Mumbai Infra corridor passes thru 6 states and most projects are on PPP basis inviting private participation most find unlikely. the initial public stake owners n the project IDFC and IL&FS have handed over their stakes to state LIC and the almost defunct India Infrastructure Finance Corpn limited. L&FS owned 41% of the corridor's DMIC Development Corp and IDFC 10%

The self sustaining smart cities probably don't count starting and end points Dadri and JNPT in ANvi Mumbai even as manesar and Dholera ar e the only other active sites with Manesar already an urban industrial centre and Dholera waiting for some enterprising indeminfied promoters taking the bait to build a city on virgin land

The stakes will thus be transferred at facev alue no assets belonging to the DMIC deve,opment corp that need to be valuated, nor any cahs flows except the equity and limited operational expenses. In the approved model, somehow the gains of Private Public enterprise are to be retained by the Development Corp with one apex and six state authorities. A separate DMIC fund will evaluate and invest in each SPV set up by the apex or state level authority to encapsulate the Private investment and channelise state paticipation. upto INR 175 bln in funding and INR 10 bln in ancilliary projects has been approved for the fund corpus and the state dMIC fund will receive Jpanese develpopment contribution from JBIC as promised.

A final 26% of the DMIC DC itself will likely be approved by the state for JBIC ownership. Maharashtra and Gujarat state committees are in a seeming race to set up and execute the first SPVs on ground

 

 

Posted via email from The India Investment Post