DMIC project in slow lane over land acquisition woes

Work on the Delhi-Mumbai Industrial Corridor (DMIC) project in Rajasthan is moving slow because of delay in completion of the land acquisition process. Out of the 1,483 km corridor length, 559 km will pass through Rajasthan.

Land acquisition for Khushkhera-Bhiwadi-Neemrana investment zone started in 2011. The government fixed compensation amount in 2015 for 14 square km of land acquired, but is facing issues related to availing of bank loans and repayments under the current financial model of the project, a state industry department official said.

Apart from Rajasthan, other states associated with the project — Haryana, MP, Gujarat and Maharashtra — have started work on phase one of the project.

State industry minister Rajpal Singh Shekhawat has said changes will be brought about in the financial model to take the work forward.

The total area under the investment zone in Rajasthan is 165 square km and includes 42 villages in Alwar district. The government has to pay a compensation of ₹3,204 crore for acquisition of 14 square km land area.

“However, under the current financial model, the government has to form a separate company for developing the area and leasing out the plots,” the industry department official said.

The state government will develop a nucleus of 14 km and its first phase is expected to be over by 2021, the second phase in 2031 and the third in 2041.

In 2016, the government passed a Special Investment Region Bill, 2016, in the state assembly.

The Bill allows the state government to set up integrated industrial townships in the DMIC, which runs 150 km on either side of the dedicated freight corridor.

Around 40% of the freight corridor passes through 22 districts of Rajasthan, which was the last state to set up a board and a regional development authority.