Formed in 2016, DICDL is owned 51 per cent by the Gujarat government and 49 per cent by the central government

To facilitate the growth of the Dholera Special Investment Region (SIR), a smart-city-industrial park model in the Delhi–Mumbai Industrial Corridor (DMIC), Dholera Industrial City Development Ltd. (DICDL) was formed in 2016 as an SPV. The Gujarati government holds 51% of the SPV in DSIRDA, and the Indian government holds 49% in the NICDC Trust.

SPV Structure and Equity Agreements

The state is represented by the Dholera Special Investment Region Development Authority (DSIRDA) and the National Industrial Corridor Development Corporation Trust (NICDC Trust) for the Gujarat state, who together market DICDL, which was incorporated on 28th January 2016. The cash equity is contributed by the central government through the NICDC Trust, while Gujarat contributes equity in the form of land allotment for the Activation Area.

Contribution Towards Dholera SIR Development

Being the nodal implementation agency, DICDL will create and build the 920 square kilometer greenfield trunk infrastructure of Dholera SIR, such as the roads, power, water, drainage, and ICT network.

At least 95% of Phase I (Activation Area) construction has been completed, and the Gujarati government is building plug-and-play buildings targeting manufacturing, high-tech, and smart city investors.

Strategic Significance and PPP Agreement

Gujarat’s development vision is in harmony with the national vision under the NICDC and DMIC paradigms, as due to the 51:49 equity model, the state-central government alliance is sure to be strong.

With state and land facilitation by Gujarat and financial support and policy-level coordination by the center, this public-private partnership system can strike a balance of interests in regional equity sharing.

Impact on the Economy and Investment

DICDL’s adoption of Dholera SIR is drawing in investors at a brisk pace. Unwavering faith in the future of the zone is evident in the Rs. 2,000–3,000 crore worth of land and plot deals per year by realty developers, primarily North Indian investors.

DICDL’s strong infrastructure and governance structure are supporting huge foreign investments, such as semiconductor fabs by Tata Electronics and Jabil.

Alignment of Policy and Governance

DICDL’s planning activity is overseen by the Gujarat Infrastructure Development Board (GIDB) and the development agency DSIRDA to ensure DSIR Act 2009 provisions and master planning guidelines compliance.

The trunk infrastructure commissioning, town planning scheme (TP1/TP2) clearance, and ministry-level coordination with Gujarat government departments, NICDC, and investor parties are all handled by the SPV.

Conclusion

Gujarat and India are best suited to join hands in developing Dholera SIR as a next-generation smart industrial city as a result of the establishment of DICDL in 2016 on a 51:49 equity sharing basis. The DICDL model, where Gujarat land equity is combined with central government investment, provides for unencumbered development of world-class infrastructure, investment attraction, and enabling Gujarat to drive India’s industrial revolution.

Source:- https://timesofindia.indiatimes.com/