Japan for 26 pc stake in Delhi-Mumbai Industrial Corridor project

New Delhi, Dec 13 (PTI) Japan has evinced interest in picking up a 26 per cent equity stake in the USD 90 billion Delhi-Mumbai Industrial Corridor (DMIC) project, which envisages the establishment of several industrial cities across seven states of India. "Japan has formally sent a letter to us. They have shown interest to take 26 per cent stake. We have forwarded a note to the Finance Ministry," an official in the Department of Industrial Policy and Promotion (DIPP) said. The DMIC project is being developed in collaboration with Japan as a manufacturing and trading hub, though Japanese participation did not involve equity holding till now. Japan has shown its interest after the government decided to replace Infrastructure Development Finance Company (IDFC) and Infrastructure Leasing and Financial Services Ltd (IL&FS) in the DMICDC, the entity implementing the project. The two private players together hold a 51 per cent stake in the DMICDC, while the rest lies with the government. The issue assumes significance as Japanese Prime Minister Yoshihiko Noda is expected to visit India this month. DMIC Development Corporation (DMICDC) is a special purpose vehicle for implementing the ambitious USD 90 billion project for building industrial enclaves along the Delhi-Mumbai rail corridor, spanning Uttar Pradesh, Haryana, Rajasthan, Gujarat, Maharashtra and Madhya Pradesh. In September, Cabinet approved equity restructuring of DMICDC. The government plans to give some equity in the SPV to state-run financial institutions like LIC (Life Insurance Corporation) and HUDCO (Housing and Urban Development Corporation). The Finance Ministry will take the final decision on the players to be inducted. The mega-infrastructure project will cover 1,483 km between Delhi and Mumbai. PTI