The government on Tuesday approved the development of trunk infrastructure components at Shendra Bidkin Industrial Area (SBIA) in Maharashtra under the Delhi Mumbai Industrial Corridor (DMIC) project, worth Rs 6,414.21 crore.
The decision to develop the infrastructure components as part of phase-II development of SBIA under the DMIC project was taken by the Cabinet Committee on Economic Affairs (CCEA).
According to the CCEA, the project will be implemented through Aurangabad Industrial Township Limited (AITL).
"It is a special purpose vehicle (SPV), constituted as joint venture between DMIC Project Implementation Trust Fund (DMIC Trust) and MIDC (Maharashtra Industrial Development Corporation)," the CCEA said in a statement.
"DMIC Trust has already released its share of equity of Rs 602.80 crore in the company towards development of 8.39 sq km in phase I of part I of SBIA."
The CCEA elaborated that development of trunk infrastructure in phase-II of SBIA will be undertaken in three phases commencing from FY 2016-17 and is likely to be completed by FY 2020-21.
"Investment in the development of trunk infrastructure is essential for the creation of a greenfield smart industrial city," the statement said.
The CCEA pointed out that development of the SBIA as a manufacturing hub will generate a series of direct and indirect benefits through employment, enhanced GDP, development of ancillary units and spin-off of socio-economic benefits.