New Delhi, Jan 20 (IANS) The Indian government Monday decided to set up a joint venture firm for developing infrastructure in integrated industrial townships in Uttar Pradesh along the Delhi Mumbai Industrial Corridor.

The Cabinet Committee on Economic Affairs (CCEA), at a meeting chaired by Prime Minister Manmohan Singh, approved the proposal to set up the joint venture company with equity contribution of 50 percent each from the Delhi Mumbai Industrial Corridor (DMIC) Trust and the Uttar Pradesh government represented by the Greater Noida Industrial Development Authority (GNIDA).

The new entity will be responsible for development of trunk infrastructure of the integrated industrial township at Greater Noida in the Dadri-Noida-Ghaziabad Investment Region of the DMIC.

The development of the infrastructural industrial township is expected to attract private sector investments of over Rs.33,000 crore over a period of 30 years and generate significant employment.

It is also intended to lead to multiplier effect in each of the target industry sectors, including backward and forward linkages with other sectors of the economy, according to an official statement released after the cabinet meeting here.

“The project will drive manufacturing and catalyse the growth of industrial development in the DMIC region by attracting skilled human resources at the Integrated Industrial Township at Greater Noida,” it said.

The project cost of Rs.1714.70 crore is proposed to be met by equity contribution of Rs.617.20 crore by the DMIC Trust and the state government. The equity from the state government would be in the form of land which would be transferred to the joint venture company.

The capital expenditure of Rs.480.30 crore will be met from internal accruals, the statement said.