Government of India has incorporated a special purpose vehicle, Delhi Mumbai Industrial Corridor Development Corporation (DMICDC), specially envisaged to coordinate DMIC Project Development, Finance and Implementation, headed by a full time Chairman and Directors and having representation from the Government of India and Financial Institutions.
An Apex Authority has been constituted under the chairmanship of Union Finance Minister with concerned Central Ministers and Chief Ministers of respective DMIC States as Members for providing overall guidance for planning and issue necessary approvals.
DMICDC will undertake project development activity for various central government projects and also help in assisting state governments, wherever desired. DMICDC will be responsible for assisting state governments in raising finances on the basis of a sovereign guarantee. The corporate entity will have a shell structure with 49% contribution by GOI and the remaining by Financial Institutions and other infrastructure organizations.
DMICDC will also act as a pass through entity for specific projects and raise Project Development Fund (PDF) from GOI, GOJ and FIIs. The PDF is proposed to be used as a revolving fund, specifically for undertaking project development activities (e.g. DPR preparation etc.), and shall be recovered from the successful bidders. This fund will also ensure availability of uninterrupted funds for various preparatory activities. The designatories of respective State Governments and the DFC implementing agency could be represented as Directors on the Board of DMICDC.
It is envisaged that funding for DMIC project could be either through nodal agencies (budgetary/extra budgetary provisions) or through Viability Gap Funding/Long term soft loans extended to the Project SPVs. DMICDC would facilitate this process by using a sovereign guarantee provided by the Central government. Moreover, the SPVs could also borrow on their own balance sheets or project recourse basis.