The Union Cabinet will soon take up the proposal for a “$5 billion-worth world-class and state-of-the-art” Exhibition-cum-Convention Centre (ECC) in the national capital — billed as the largest such facility in Asia when completed by 2021.
By this month-end, the Cabinet will consider for discussion a “note on approval of the project and formation of a Special Purpose Vehicle (SPV) to implement the same,” official sources told The Hindu . Part of the $100 billion Delhi Mumbai Industrial Corridor (DMIC) project, it would be developed on Public-Private Partnership model using viability gap funding of the Centre, if required.
“The SPV will be a 100% subsidiary of DMIC Development Corporation,” the sources said.
“The SPV will be given the rights to activities, including sub-leasing of land parcels, sub-contracting project components, granting long term concessions to private developers as well as fixing lease rentals.
The project became necessary as “India lacked an integrated world class facility that can meet the requirements of global ECC operators in terms of space, project facilities and transportation linkages,” the Centre had said.
MICE market
Though the size of the global Meetings, Incentives, Conferences, Exhibitions (MICE) market is about $280 billion and that of Asian MICE market about $60 billion, India did not benefit due to lack of world class ECCs, it said. It added that the ECC in (Dwarka) New Delhi will help India capitalise on this vast MICE market and drive the country’s industry, commerce, trade and tourism.
In May this year, the Public Investment Board / Committee of Establishment Expenditure had “suggested the formation of the SPV with initial paid up capital of ₹5 crore as equity and additional budgetary support of ₹1,500 crore.” Then, the final Cabinet note was circulated. In March 2016, the Cabinet had given its approval for transfer of 89.72 hectares in Dwarka, New Delhi, “free from all encumbrances,” to the Department of Industrial Policy and Promotion (the nodal body for industrial corridors) for the construction of the ECC. The Delhi Development Authority had in November 2010 given its in-principle approval for the project, and in September 2016 had transferred the land to the DIPP.
The ECC will infuse a demand for over 100 international and local exhibition events annually, the Centre said. It will also contribute more than one million international delegates-based (non-leisure) MICE tourism per annum. The ECC and supporting facilities would generate spending of over $40 billion per annum after commissioning of the second phase of the project, the Centre said. Besides, it would help generate over five lakh jobs. The ECC was in April 2011 identified by the Union Cabinet as among the “early bird projects” of the DMIC. The Delhi Metro would be extended to the ECC. The proposed project is situated close to the international airport in Delhi and has also received the environmental clearance.
