The Cabinet Committee on Economic Affairs on Monday has approved the utilisation of Japanese assistance under the Japan International Cooperation Agency (JICA) through Special Terms for Economic Partnership (STEP) of Japanese official development assistance loans for the Delhi Mumbai Industrial Corridor (DMIC) project and the operational rules, terms and conditions of this tied loan facility.
The development of industrial cities with world class infrastructure in the DMIC region will attract an estimated investment of around $90-100 billion, while providing employment opportunities for over three million people, Government said in a statement.
The proposal for making use of the $4.5-billion facility through a STEP loan is expected to bring in Japanese funding, cutting edge technology and know-how into the projects implemented in DMIC. This would also enable the Japanese companies to establish their manufacturing facilities in India and enable transfer of technology from Japan to India.
In addition, the Union Cabinet also gave its approval for setting up the Amritsar-Kolkata Industrial Corridor (AKIC) and formation of the AKIC Development Corporation (AKICDC).
The Union Cabinet also approved the proposal to constitute a Rail Tariff Authority (RTA), which would advise the Railways on fares, an important reform measure for the cash-strapped public transport system.