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EXECUTIVE SUMMARY

Feasibility Study of Knowledge City


Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

CONTENTS
1.
1.1. 1.2.

KNOWLEDGE CITY ............................................................................................................. 1


INTRODUCTION............................................................................................................................................ 1 SITE DELINEATION ...................................................................................................................................... 1 1.2.1. SELECTION OF LOCATION ............................................................................................................................................... 1 1.2.2. SITE DELINEATION ............................................................................................................................................................ 1 POTENTIAL DEMAND ................................................................................................................................... 2 CONCEPT MASTER PLAN ........................................................................................................................... 3 1.4.1. VISION AND DEVELOPMENT STRATEGIES .................................................................................................................... 3 1.4.2. CONCEPT PLAN ................................................................................................................................................................. 4 1.4.3. KEY INFRASTRUCTURE REQUIREMENTS ...................................................................................................................... 9 COSTING AND FINANCIAL VIABILITY ....................................................................................................... 10 1.5.1. PROJECT COSTING ......................................................................................................................................................... 10 1.5.2. PROJECT PHASING ......................................................................................................................................................... 11 1.5.3. FINANCIAL VIABILITY ...................................................................................................................................................... 12 PROJECT IMPLEMENTATION STRATEGIES ............................................................................................ 13 WAY FORWARD ......................................................................................................................................... 15

1.3. 1.4.

1.5.

1.6. 1.7.

1.. 1
1.1.

KNOWLEDGE CIITY KNOWLEDGE C TY


INTRODUCTION

1. Four early bird projects have been identified by DMICDC for feasibility studies as part of the preparation of development plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh Sub-Region of Delhi Mumbai Industrial Corridor (DMIC). They include: (a) development of an economic corridor from Pithampur Industrial Area (PIA) to Indore airport; (b) development of integrated multimodal logistic hub; (c) preparation of preliminary project report (PPR) and feasibility study for improvement of water supply system and wastewater management for PIA; and (d) development of knowledge city at Ujjain. 2. As per the vision and objectives of the DMIC, the Corridor is expected to have large scale investment nodes in the form of Investment Regions (IRs) and Industrial Areas (IAs) offering employment opportunities arising from industrial development. Towards creating skilled workforce, developing educational hubs in DMIC influence zone is considered important. In this context, Knowledge City is identified at Ujjain (Narwar) as one of the early bird projects. 3. Knowledge City is anticipated to be an integrated township providing infrastructure for academic institutions, students and faculty housing, support social and physical infrastructure. It is intended to have sustainable economic base around educational and institutional activities for technical and vocational skill development. Knowledge City is intended to be a National Centre of Excellence.

1.2.
1.2.1.

SITE DELINEATION
Selection of Location

4. Ujjain is positioned as a Knowledge Centre by Government of Madhya Pradesh. Figure 1 presents the location of Knowledge City in its regional context. The identification of site has been undertaken after evaluating three potential sites and in consultation with Govt. of Madhya Pradesh. The main reasons for choice of site near Ujjain at Narwar are follows.
Availability of Govt. owned land near Narwar; To meet the needs of Industrial Development in the Region; To capitalize on Connectivity of Ujjain with

Region; and
To reinforce economic base of Ujjain region

1.2.2. Site Delineation 5. Some of the primary reasons for delineating the site near Narwar are elaborated below:
Ownership: The area around Narwar village has two large land parcels under government ownership. There are other privately owned barren lands in between two Government owned land parcels which are again considered desirable for consolidating the site for the Knowledge City. A total of 419 ha of site have been identified by consolidating the government and privately owned barren land situated in 6 revenue villages. Out of the total site area of 419 hectares delineated for Knowledge City 233 hectares is govt. owned land and remaining 186 hectares of land is belongs to private land owners. Accessibility: The two ends of the site are connected by local access roads which can be widened to facilitate good quality access to the site. In other words these two existing roads
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Figure 1: Location of Knowledge City in the Region

DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED

Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

EXECUTIVE SUMMARY OF KNOWLEDGE CITY

becomes one of the delineating criteria for the site. Physical barriers like railway line and village settlement: whole stretch of barren land selected for development runs parallel to the railway line. The existing village settlement falling close to the site is kept outside the site and the only road link would be developed on its periphery to connect the barren land parcels into a single whole.

6.

Figure 2 presents the delineation and land ownership details of the Knowledge City site.

Figure 2: Delineation and Land Ownership Details of the Knowledge City Site

1.3.

POTENTIAL DEMAND

7. For the purpose of establishing the qualitative and quantitative demand of Knowledge City number of studies has been carried out. Benchmarking Studies, Stakeholder consultations and Structured Surveys of 5 interest groups have been undertaken to understand the qualitative dimensions of the Knowledge City. 8. For identification of components of the demand three alternative approaches/methods considered are:
Workers Growth Trend Based (WGTB) Approach; Industrial Growth Based (IGB) Approach; and Investment Region and Influence Area Needs Based (IRAB) Approach.

9.

Table 1 provides the comparative statement of the assessed demand as per three methods.
Table 1: Comparative Statement of Assessed Demand for Immediate Influence Area (per annum)
Method Required Skill Level Category I 2016 12517 18775 31292 3212 4818 8030 1708 2562 4269 Potential Demand for Knowledge City 2021 2026 2031 2036 13066 19599 32665 4100 6149 10249 2147 3221 5368 21196 29270 50466 6715 9273 15988 3968 5479 9447 26524 36628 63152 8570 11835 20405 5048 6971 12019 41342 50529 91872 12784 15625 28409 8723 10661 19384 2041 51905 63439 115344 16316 19942 36258 11383 13912 25295

Workers Growth Trend Based Approach

Category II Total Category I

Industrial Approach

Growth

Based

Category II Total Category I

Investment Region and Influence Area Need Based Approach

Category II Total

Note: Category 1: Higher Technical and Managerial education Category 2: Non-technical higher education and technical diploma

10. Two approaches of Industrial Growth Method and Investment Region Based Approach has been found comparable and thus for the final demand assessment a mix of these two approaches has been adopted. It is also further considered that the demand projected through these approaches is potentially risk free. Table-2 presents the considered demand for development of Knowledge City
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DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED

Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

EXECUTIVE SUMMARY OF KNOWLEDGE CITY

Table-2: Assessed Potential Demand for the Proposed Knowledge City (per annum intake)
Required Skill Level Category I Category II Total 2016 3212 4818 8030 2021 4100 6149 10249 2026 6715 9273 15988 2031 8570 11835 20405 2036 8723 15625 24348 2041 11383 19942 31325

11.

Demand assessed and presented above for Knowledge city is aggregate and potential one. It is in terms of per annum intake. The criteria of the likely holding capacity of the site have been adopted for assessment of catered demand for the proposed knowledge city as given in.
Table 3. Table 3: Total Demand getting catered by Proposed Knowledge City
Required Skill Level Category I Category II Total 2016 3000 2000 5000 2021 4000 2500 6500 2026 7000 3000 10000 2031 8000 3500 11500 2036 9000 5000 14000 2041 11000 6000 17000

12.

13. While fixing the mix of the likely skill levels, which is to be trained at the proposed knowledge city, the following have been considered:
The proposed project should attract private investment; To provide for almost 100% of the assessed potential demand for Category I workers, as it is this category which requires highly specialized institutes with competent faculty and extremely good infrastructure; and To make the proposed Knowledge city an institute of national excellence.

1.4.

CONCEPT MASTER PLAN

1.4.1. Vision and Development Strategies 14. Based on the Terms of Reference, the Demand Assessment conducted for the project, and the clear mandate from Govt. of Madhya Pradesh, the core idea of the project is to promote Knowledge City at Ujjain (Narwar) as a Centre of National Excellence. The role of the city would be to cater for specialized and higher technical education, vocational training, research and development led academia along with residential and support social infrastructure to promote an integrated township.
KNOWLEDGE CITY AS CENTRE OF NATIONAL EXCELLENCE

Theme based specialised academic cores supported by social infrastructure

Provision quality physical and social infrastructure

KC well connected to regional and national transport nodes and cities in the region

Equipped with State-ofthe-Art-waste management infrastructure

PPP Led development model

Promote low-rise spacious, and pedestrian friendly human environment

An integrated township for learning, living, and leisure

DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED

Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

EXECUTIVE SUMMARY OF KNOWLEDGE CITY

15. Following development strategies are instrumental in determining the form and contents of proposed Knowledge City.
Centre of National Excellence: Based on the mandate given in the Terms of Reference for the Knowledge City and the feedback from Govt. of Madhya Pradesh, Knowledge City is to be developed as a Centre of National Excellence. It is intended to cater for the development of human resource through provision of quality education and vocational skill upgradation for industry and support sectors at Investment Region, State, and National level. An Integrated Township: The Knowledge City is essentially intended as a sustainable development on a long term basis, which can evolve over a period of time and in a phased manner to become one of the finest learning centres across the world. Provision of quality social infrastructure in the form of residential facilities for students and faculty, schools, health centres, leisure facilities and other amenities of importance is intended to attract good quality faculty at Knowledge City. Good Connectivity to Knowledge City: It is proposed that the connectivity of the Knowledge City site at Narwar with respect to important cities in the region eg. Indore, Ujjain, and Dewas will be enhanced through provision of efficient public transport system and other rail and road networks. Good connectivity to Knowledge City with respect to Indore (nearest airport) and national transport nodes in the region is of strategic importance for the success of the city, considering that the education hub would attract visiting faculty and experts from various parts of the country and world.. Infrastructure Led City: In order to promote an integrated Knowledge City at Ujjain, the primary intent is to make it an Infrastructure-led development, such that quality learning and living environment can be promoted for faculty and students and the city eventually emerges as a sustainable development. Site Area led Holding Capacity: It is important to mention here that size of Knowledge City, in terms of student enrollment capacity, is based on the site area available. The approximately site area is 419 hectares which is assembled by consolidating government and privately owned barren land near Narwar. The potential capacity of site of Knowledge City is based on All India Council for Technical Education (AICTE) norms applicable to various clusters. Theme based Specialized Academic Clusters: The Demand Assessment for Knowledge City suggested a product mix with specialized areas of skill development and training in the field of Engineering, Management, Medicine and Pharmacy, Agriculture Sciences and Bio-technology, Environmental Sciences/ Planning, Product designing and Vocational training along with need for quality education in General Studies. This suggests that Knowledge City can support theme based clusters which can offer specialized educational and training programmes and the common services and facilities required by a cluster can be shared. Private Investment Led Development: It is the main intent of Knowledge City that it would be developed based on public and private sector participation model (PPP model). Hence it is proposed that the structure of the city would be oriented such that it can be promoted and made successful through a PPP model along with necessary sweeteners, if needed. The flexibility of development of Knowledge City as a whole or in parts through various private sector investors is kept in mind while arriving at its urban structure.

1.4.2. Concept Plan 16. Two concept alternatives have been prepared keeping in mind the above vision and development strategies. Concept alternative based on Cluster-Led Knowledge City has been found most suitable for the Knowledge City and same has been recommended by Government of Madhya Pradesh. 17. The concept of the Knowledge City is based on an idea where development of clusters and common city level commercial and social infrastructure is given equal importance to achieve a balanced and integrated city. The main principles which guide the concept layout plan for Knowledge City are as follows. Pragmatic integration of the Movement pattern and the Open Space Structure is being considered as the core aspect
responsible for translating the clusters and common infrastructure into an integrated city. The intent is to consolidate the area of each cluster through a well defined and secure built environmental precinct which can be connected through a city level transport spine. Creation of an interface between the natural surroundings of the site and the built form of the clusters is also equally emphasized.

DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED

Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

EXECUTIVE SUMMARY OF KNOWLEDGE CITY

Provision of a decentralized system of urban infrastructure especially for wastewater treatment and recycling and suitable coordination of the same with ground water recharge strategies. Creation of ample opportunities for academic and social events by providing social core within each cluster. Promotion of the idea of developing a strong central core which is suitably accessible to all the clusters, the city centre, also incorporating the main recreational and sports facilities. Such a City Centre would act as a focal point and give an eminent characteristic to the entire development. The impact of the linear form of the city is ameliorated by creating varied experiences in the site, which are mainly attributed to the curvilinear nature of the main spine and the adjoining clusters that have their own precinct characteristic. To an extent, the Knowledge City would be an ensemble of mini cities (clusters) within the city.

18. The overall perception of the Knowledge City would be of a green and linear city having significant green spaces on its edges. The role of green spaces is seen in the light of need for carrying out ground water recharge while giving the city a spacious experience. It is also envisaged that the landform of the site would be efficiently utilized for creating a schematic disposition of the clusters and city as a whole, such that an interesting skyline can be generated. Hence the ridges and uplands are seen as potential areas where majority of building activities can be located. Area Programme 19. As stated earlier, the Knowledge City is conceptualized based on the specialized clusters for faculties which form the building blocks of the city. The holding capacity of the Knowledge City is based on comparative study of national and international benchmarks. It is proposed that the Knowledge City would have a total capacity of approximately 50,000 students, 3823 faculty, and 3546 staff by year 2041. 20. Knowledge City comprises of seven specialized clusters or faculties along with support infrastructure for the city as a whole. The specialized faculty led clusters are for Engineering, Business and Management Studies, Medical Studies, Bio-Sciences and Agriculture Studies, Environmental and Design Faculty, General Studies/ Humanities, Vocational and Skill Development Studies. The common commercial and social infrastructure is for Estate Management and Administration, Residential, City Centre for commercial and entertainment facilities, schools, hospitals, green areas, and other social infrastructure. 21. It is proposed that Knowledge City can be developed in six phases over a period of 30 years period and as per demand projected for the city. The approximate total built up area envisaged for the Knowledge City is 1.76 million sq m. The Knowledge City is planned on a site area of 419 hectares delineated for the project by consolidating government and privately owned barren land. Refer Table 4 for capacity and built-up area summary for Knowledge City.
Table 4: Summary of Capacity and Built Up Area for Knowledge City with respect its proposed phasing scheme
S.No. 1 2 3 4 1 2 3 4 5 6 Aspect/Component Number of Students Number of Faculty Number of Staff Total Built-up Area (sq.m.) Residential (sq.m.) Estate Management/Administration sq.m.) City Centre (commercial zone) (sq.m.) Social Infrastructure (sq.m.) City Green/Recreational/Sports Facilities(ha) Roads and Common Infrastructure(ha) Phase I II Academic Clusters 9220 17500 699 1437 657 1270 275135 558418 City Level Functions 57000 63000 5000 5000 5000 16790 11400 44650 8 16 34 17 III 24200 2053 1801 762250 IV 34200 2720 2468 1032809 V 39400 3067 2815 1168368 VI 50000 3823 3546 1465661

8795 73700 21 17

0 8

Zoning and Land Use Plan 22. The zoning and land use scheme for the Knowledge City is governed by number of principles which are meant to utilize the site effectively in order to create a state-of-the-art city while respecting natural features of the site. The governing principles for zoning are as follows.
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DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED

Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

EXECUTIVE SUMMARY OF KNOWLEDGE CITY

Clear definition for clusters Provision of green space system along the main spine of the city essentially meant to carry out ground water recharge and provide green and spacious image to the city. At cluster level, areas near the main road of the city are allocated for academic and public functions while areas further from the main road would be utilized for more private functions or residential and related functions. It is generally envisaged to consolidate green areas near the water collection points/ ponds which already exist on the site. Existing village of Gowdi and proposed Aeronautical College will be incorporated in the overall urban structure of the Knowledge City without compromising on their access and open space system. It is intended to create a balanced city having important functions such as work and study areas, residential development, green spaces, roads and parking, and other common physical and social infrastructure. In other words, the land use programme for the Knowledge City is similar to that of a complete and sustainable city.

23. The total area of the site is approximately 419 hectares out of which 82 hectares (20%) is allocated for academic and educational (Institutional) functions, 71 hectares (17%) of the site is allocated for residential functions, 135 hectares (30%) for green and vegetation areas, 90 hectares (20%) is allocated for movement and transport network, and 43 hectares of the remaining site is allocated for common commercial, recreational, sports and other social infrastructure at city level. Refer Figure 3 for Zoning and Land Use. Disposition of Activities 24. The disposition for product mix and activities is related to zoning and phasing based on the demand projection for the Knowledge City. The product mix in this case are in the form of faculties, residential development for students, faculty, and staff, common commercial and social infrastructure. As stated earlier the phasing for the Knowledge City can start from both ends of the site which is possible due to its long and linear nature and having connectivity on both ends. 25. It is proposed that govt. owned land at two ends can be allocated to development of faculties which are proposed for initial phases of the projects. These are in the form Specialized Engineering, Management Studies, and Medical clusters. 26. The area, in the middle of the site, which generally belongs to private land owners, is allocated for the city centre and associated recreational, sports, and entertainment facilities and other clusters which can be developed on medium to long term basis. The city centre through its location in the centre, is proposed to provide a common commercial and social infrastructure for the city and hence is envisaged to act as the genus loci for the Knowledge City. 27. Clusters for General Studies, Vocational and Skill Development Training, Bio-Sciences and Agriculture Studies are placed near the Gowdi Village or internal parts of the site as these are likely to get developed on a medium to long term basis. It is important to suggest here that many of clusters will have simultaneous growth and development depending on the parallel establishment of new cluster and demand for the expansion of faculties. 28. Each of the clusters will have its own academic and social core to create opportunities for academic and social events. In other words the structure of the common activities is both global and local in character depending upon their roles at cluster and city level.

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Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

EXECUTIVE SUMMARY OF KNOWLEDGE CITY

Figure 3: Disposition of Clusters and Land Use


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DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED

Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

EXECUTIVE SUMMARY OF KNOWLEDGE CITY

29. Considering that the water scarcity in the region is a major concern for development, it is generally envisaged that consolidation of green areas can be done near the existing water bodies or potential water bodies to create green cores of the Knowledge City which can act as recreational areas and wastewater recycling cum ground water recharge zones. Movement and Open Space Network 30.

Principles which guide the primary movement network of the city are highlighted below:
The movement structure for Knowledge City is conceived as a combination of main transport spine and the secondary movement network running within the clusters. The main transport spine will connect all the clusters and city level common facilities. The RoW for main movement line is recommended as 30 m. It is envisaged that Knowledge City would be a connected with Indore, Dewas, and Ujjain through rail and road system, as an existing BG railway line connecting Dewas, Indore, and Ujjain is running along the site on northern side with two rail stations, as well. The two ends of the site are connected with existing roads which are single lane roads. These roads are recommended for improvement to get good quality access to the site. The Dewas-Ujjain Road acts as the regional connectivity link for the Knowledge City. It is proposed that these entries can be converted into two lane roads on short term basis and four lane roads on a medium term basis having RoWs of 30 m. The internal road movement inside clusters will comprise of loops and cul-de-sacs to provide smooth movement of the traffic and access to the clusters. The RoWs of the internal roads can vary between 9m, 18m, and 24m depending on the requirement and capacity of the clusters. Majority of the public transport, signage and information on Knowledge City, entries and exits will be located along the main movement spine of the city. Suitable treatment of this spine with good quality public space and transport infrastructure will be important for the success and promotion of quality image for the city, as this would be the main integrating feature of the development. It is recommended to integrate walkways and cycle tracks along the major roads of the Knowledge City to create a network of non-motorized movement corridors through-out the site. It is envisaged that Knowledge City will have environmentally sensitive public transport within the site and at the same time would to be connected with important rail, road, and air transport nodes of the region to enhance the accessibility to the development.

31.

The principles which guide the open space structure for Knowledge City are as follows:
The main green or open space system of Knowledge City is located along the main movement spine of the city and intended to become a ground water recharge zone along with giving a green vista effect to the city. The existing water collection points are seen as recreational nodes, which will continue to behave as water collection and ground water recharge zones in the future. The edges of the site will be kept green such that it can create green seams with agriculture belt on the periphery of the Knowledge City. The internal movement network within the clusters can be promoted along secondary greens, running across the slopes, while being the drainage corridors. In principle, Knowledge city will provide a spacious natural environment with placement of green and open spaces along the movement network. The recreational and sports facilities areas are consolidated at the centre of the site and on comparatively flatter land parcels.

Image Structure of Knowledge City 32. As stated earlier Knowledge City is to be promoted as Centre of National Excellence. Having qualitative image of the city which is par with modern educational cities at national and international level is of equal importance. The key aspects which will guide the image structure of the Knowledge City are as follows.
Strategic utilization of the linear urban form and structure of the city will generate an inevitable experience for the city. The Concept Master Plan attempts to provide varied visual experiences by suitable use of the site and the proposed curvilinear road network. The core image provider for the project would be the Main Public Transport Spine that runs across the site. It can be utilized as a green spine along with suitable provisions of contemporary street furniture/ landscape such that it forms
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DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED

Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

EXECUTIVE SUMMARY OF KNOWLEDGE CITY

an integral part of the public realm. The curvilinear nature of the main spine and the undulating site character can be suitably utilized to create special interests in the site and surroundings. Clusters which are self contained faculties with spacious and pedestrian friendly built environment will be the building blocks of the city and can bring diversity in built environmental experience. Along with the main spine, the green edges of the site can also be appropriately treated and landscaped to augment the experiential quality of the development. Another key highlight of the development would be its Skyline. Considering that the site has an undulating character and the main spine is curvilinear in nature, the skyline of the development would unfold as one approaches the site from the main entry points and moves along the main network. Green hubs near the existing water bodies can be treated as recreation and theme based activity zones which can become an integral part of the green and activity system. High points of the site can be utilized for citing important public or educational activity buildings to project knowledge led image of the place. The internal environment of the clusters will be pedestrian friendly and well connected with the main spine through efficient and non-polluting public transport. In the contemporary context, it is also important to promote an energy efficient image for the city, which can be achieved by adopting strategic waste management techniques, developing energy efficient built forms, promoting use of public transport, creating more vegetation parcels for achieving a favorable micro-climate, and adopting ample use of solar and wind energy.

1.4.3. Key Infrastructure Requirements External Connectivity Plan 33. The Dewas Ujjain road provides access to the knowledge city (KC) at two ends. The western entrance to the campus from the Karchha station side is about two and a half kilometers from the main road by the station road, while the eastern entrance from Piplodhar-Dwarkadhish side is about seven kilometers by the PMGSY (village) road. Both these roads shall be improved in order to provide connectivity to the KC. 34. Presently the road distance from Indore to KC is about 52Km from Dewas and about 62Km from Ujjain side. The connectivity from Indore may be required to be improved. There is a link comprising of metalled and un-metalled village roads connecting Sanwer on Indore-Ujjain road to the KC site. This link may be developed into an all weather metalled road, which will result in a distance saving of about 10Km from this side. 35. On a long term basis the KC will be required to have integrated transportation connectivity with major settlements within the IIA, which includes Indore, Pithampur (PIA and IR), Dewas, Ujjain and Dhar. Existing links with Ujjain and Dewas are satisfactory and will only need strengthening and up-gradation in the future. For Indore and Pithampur new link are required to be developed, that may serve dual purposes of integration of IR as well as KC with other settlements in the region. 36. Public transport access is important for functioning of the KC as a regional centre of learning. However, since most of the campuses are expected to be residential, high capacity public transport is not envisaged for the purpose of KC. Good quality road network along with designated bus routes from Indore, Ujjain and Dewas shall be provided. It is anticipated that the peak hour passenger trips by year 2031 will require about 45 bus trips during peak hours to bring in people from outside of KC or vice versa. This requirement will increase to about 57 bus trips by year 2041. 37. Presently about 10 passenger trains are plying on this route passing through Karchha and Madhopur stations; however only one passenger trains makes a scheduled stop at the two stations. As the KC develops into a knowledge hub more students and visitors are likely to require rail connectivity. Further, in view of proposed developments of industry and other economic activities in the region the use of railways for sub-urban and short range inter-city travel is also likely to increase. It is proposed to improve Karchha and Madhopur stations in the future to handle more passenger flows and reschedule certain trains to stop at these stations.
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Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

EXECUTIVE SUMMARY OF KNOWLEDGE CITY

38. In view of need for integration of the IIA, running sub-urban and intercity trains in the region will also add to the development potential of the KC. The possibility of these needs to be explored further. Water Supply Infrastructure 39. Total estimated demand for Knowledge City is about 11 MLD upto 2041. As part of source identification, number of sources have been identified such as Sewarkhedi Project, Dewas BOT Scheme, rainwater harvesting and ground water. In short and medium term, Dewas BOT Scheme has been found most suitable for the Knowledge City. Waste Water Infrastructure 40. Decentralized sewage treatment plants [STPs], having small footprint are recommended to be installed in dispersed manner, based on topography and inflow magnitude. With a demand of 9 MLD, it is recommended to install a total of 6 STPs [package units] of 1.5 MLD each for waste water treatment. . The initial settling pond [1000 M3 capacity and 24 hour retention time] shall have anaerobic bio-remediation treatment [injection of anaerobic and facultative bacteria strains] removing foul odour and generating effluent fit for irrigation [i.e.<100mg/l BoD]. It is further recommended that the unutilized flow shall be subjected to further aerobic treatment and upgraded to between 10 15 mg/l BoD.. Solid Waste Management 41. Solid waste disposal requirement would grow with the increase in population. For horizon year 2041, solid waste generation for residential and floating population is estimated around 40 tons/day. The 3 bin system of segregation at source is recommended for the collection. The use of anaerobic bacterial remediation is recommended to compress the composting process in time and generated compost can be used by the neighbouring farmers for organic farming. Total space requirement for organic waste compost is about 1.5 ha for horizon year 2041. 42. Non-biodegradable waste would have to be collected and suitably disposed in recycling markets in Ujjain. Each cluster would have its own holding site capable of holding upto 50 tons of waste. By 2041 the movement of 20 tons of waste would require 10 truck trips daily. Power infrastructure 43. Total power demand of the Knowledge City is about 77 MVA. According to existing power supply code prescribed by MP Electricity Regulatory Commission, this power can be extended only on 220 KV by MPPVVCO Ltd, Indore. The nearest 220 KV sub-station of the MP Power Transmission Co. Ltd. from where this supply can be extended (subject to confirmation from MPPTCL) is at Ujjain. A 20 km long 220 KV line will be required from Ujjain sub-station upto Knowledge City site. Construction of 100 MVA 220/33 KV sub-station is proposed to be constructed at Knowledge City site as a main distribution hub for the entire site.

1.5.
1.5.1.

COSTING AND FINANCIAL VIABILITY


Project Costing

The overall project cost for the Knowledge City is estimated as Rs. 34989 millions. The overall infrastructure cost for the Knowledge City as a whole is approximately Rs. 5721 millions. Out of which physical infrastructure cost including roads is 1046 millions. The building components and related cost for city level functions for commercial, administrative, residential, and social infrastructure components is Rs. 4309.72 Million The overall project costing at cluster level for building related components is Rs. 24100 millions and infrastructure components of the cluster are costing Rs.741 millions. The total costing is estimated as Rs. 29268 millions for all the clusters which includes local infrastructure at cluster level.

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DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED

Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

EXECUTIVE SUMMARY OF KNOWLEDGE CITY

Table 5: Cost Summary of the Knowledge City


Sl No A 1.00 2.00 3.00 4.00 5.00 B 1.00 2.00 3.00 4.00 5.00 Land Costs Land Development Costs Built up Area Costs Infrastructure Costs Environmental Enhancement Costs Sub-Total Total 94.96 34.90 1077.30 887.47 44.63 2139.26 7578.46 Land Costs Land Development Costs Built up Area Costs Infrastructure Costs Equipment and Furniture Sub-Total 157.53 28.21 4530.72 271.57 451.16 5439.20 Components Phase I Cost in Million INR Phase II Phase III Phase IV Phase V Cluster Level Cost 0.00 38.57 4809.34 136.22 575.34 5559.47 0.00 29.31 1792.52 150.95 43.93 2016.71 7576.18 0.00 26.39 3315.91 142.57 496.04 3980.91 0.00 28.09 1439.90 8.02 40.63 1516.63 5497.54 0.00 25.84 4405.34 91.39 1927.04 6449.61 0.00 5.28 0.00 0.02 42.83 48.12 6497.73 0.00 13.52 2177.12 36.56 178.74 2405.94 0.00 0.00 0.00 0.00 0.00 0.00 2405.94 Phase VI 0.00 32.40 4862.46 63.21 475.22 5433.29 0.00 0.00 0.00 0.00 0.00 0.00 5433.29 Total 157.53 164.93 24100.9 741.51 4103.54 29268.41 94.96 97.59 4309.72 1046.45 172.00 5720.72 34989.13

City Level Costs

1.5.2. Project Phasing 44. Figure 4 provides summary of the phasing plan adopted for the development of Knowledge City.
Figure 4: Phasing strategy of Knowledge City
A c tiv it ie s S H O R T -T E R M M E A S U R E S Im p ro v e m e n t o f K a rc h a R o a d c o n n e c tin g U jja in -D e w a s R o a d to W e s te rn E d g e o f th e S ite P riv a te L a n d A c q u is itio n In itia tio n o f C lu s te rs lo c a te d o n g o v e rn m e n t L a n d D e v e lo p m e n t o f M a in S p in e o f K n o w le d g e C ity G ro u n d W a te r b a s e d s u p p ly R o W re s e rv a tio n f o r e a s te rn e d g e ro a d T w o w a s te w a te r tre a tm e n t a n d re c y c lin g U n its S o c ia l a n d C o m m e rc ia l F a c ilitie s n e a r C lu s te rs P la n ta tio n o f C ity G re e n s M E D IU M -T E R M M E A S U R E S C o m p le tio n o f M a in S p in e E x p a n s io n o f C lu s te rs a n d E s ta b lis h m e n t o f N e w C lu s te rs E x p a n s io n o f C lu s te rs a n d E s ta b lis h m e n t o f N e w C lu s te rs D e v e lo p m e n t o f C ity C e n tre P ro m o tio n o f P u b lic F a c ilitie s D e v e lo p m e n t o f W a te r S u p p ly S y s te m L O N G -T E R M M E A S U R E S D e v e lo p m e n t o f C lu s te rs D e v e lo p m e n t o f G re e n S y s te m s F o u r L a n in g o f a ll a p p ro a c h ro a d s 2 0 1 1 -2 0 1 6 2 0 1 6 -2 0 2 6 2 0 2 6 -2 0 4 1

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DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED

Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

EXECUTIVE SUMMARY OF KNOWLEDGE CITY

1.5.3. Financial Viability 45. The proposed Knowledge City is expected to be implemented under a private sector financing model. Therefore a financial analysis of the proposed project is being undertaken at the full Knowledge City level as well as at the cluster level. 46. Overall Cost of Project & Means of Finance is provided in Table 6. This is the base case working and thus does not include subsidy.
Table 6: Cost of Project & Means of Finance
Total Without City Infra Bio-Science/ Agricultural Studies Total With City Infra 95 98 1350 32 1575 252 263 33207 196 33918 10175 0 23743 33918 0 1102 1575 Design, Plng.& Env. Studies

Management

Engineering

Item of Cost

General Studies

Vocational

Cost of Project ( 2009-10 prices) Land Cost Land Development Construction IDC (Current Prices) Total Costs Means of Finance (2009-10 prices ) Equity Subsidy ( any form) Loan Total Means 31 31 7955 30 8048 14 15 2110 8 2147 40 45 6502 22 6608 14 14 3332 11 3372 13 13 3354 11 3390 20 21 3080 40 3160 25 26 5525 43 5619 158 165 31857 164 32343

2414 0 5633 8048

644 0 1503 2147

1982 0 4625 6608

1012 0 2360 3372

1017 0 2373 3390

948 0 2212 3160

1686 0 3933 5619

9703 0 22640 32343

47. With the inputs and assumptions, financial results are derived on the parameters such as Project IRR, Equity IRR, Equity NPV, Payback and Profitability ratio as given in Table 7.
Table 7: Financial results in the Base Case
Total Knowledge City 14.8% 15.7% 14.7% 13.7% 10.7% -741 17 0.99 16.0% 18.7% 17.4% 15.8% 12.6% -1,170 18 0.99 General Studies Design, Plng.& Env. Studies Total Clusters Management Bio-Science/ Agri. Studies Engineering Vocational City Level 28.5% 17.0% 17.6% 18.2% 19.4% 300 17 1.15 55..2% 25.1% 26.0% 27.0% 28.9% 244 17 1.12 Medical Time

Indicators

Project Investors FIRR (40 yrs) Modified FIRR ( end of phase periods )

40 yrs 32 yrs 27 yrs 22 yrs

NPV (@ 16%) Payback Period (Years) Profitability Ratio Equity Investors FIRR (40 years) MFIRR* ( end of phase periods )

16.4% 16.5% 15.4% 14.8% 12.0% 43 15 1.00

39.6% 24.2% 25.9% 27.0% 28.1% 946 8 1.18

25.4% 20.1% 20.6% 20.9% 20.5% 1399 14 1.10

15.2% 15.9% 14.7% 13.4% 9.8% -43 18 1.00

15.8% 16.3% 15.5% 13.7% 3.7% -12 23 1.00

NR 11.5% 4.0% 0.5% NR -248 36 0.97

NR NR NR NR 0.0% -3127 41 0.77

14.3% 15.5% 14.4% 13.3% 10.0% -1041 19 0.99

40 yrs 32 yrs 27 yrs 22 yrs

NPV (@ 22%) Payback Period (Years) Profitability Ratio NR = No (Positive) Results


`

18.5% 20.3% 19.2% 18.0% 15.5% -118 16 0.98

65.2% 31.4% 33.6% 35.5% 37.9% 362 5 1.07

33.5% 26.0% 26.7% 27.2% 27.4% 445 12 1.03

16.6% 18.9% 17.5% 15.6% 12.2% -87 18 0.99

17.4% 19.3% 18.0% 15.8% 10.5% -84 20 0.99

NR 10.3% -0.1% NR NR -110 40 0.99

NR NR NR NR NR -1,822 41 0.86

15.1% 18.3% 16.8% 15.1% 11.4% -1,414 20 0.98

City Level 472

Medical

12

DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED

Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

EXECUTIVE SUMMARY OF KNOWLEDGE CITY

48. The results indicate that the overall City level Financial feasibility is on a moderate scale. Management Studies and Medical Clusters generate attractive returns. However the General Studies and Vocational training clusters are not showing financial viability on their own. They need to be supported by substantial subsidies. Other clusters show moderate returns. These will have to be supported either by adding some commercial development opportunities or by subsidies as a last resort. 49. The sensitivity analysis is also undertaken with regard to Cost of Project, Student Intake, Fee structure, Faculty & Staff Expenses and O&M costs. Following factors are found to be of a significant nature after sensitivity analysis:
It is observed that fee structure is the most sensitive variable. This includes both increase or decrease in the base fee as well as the annual escalation in the fee. If the fee structure is revised annually at a rate of 7%, then the Knowledge City becomes a very attractive project. Looking at the present practice in some of the Indian institutions as well as European universities, which escalate the fee by about 10% per annum, this assumption for testing the project viability is reasonable. Following this are the other variables such as cost of project, student intake and faculty and staff expenses. Fee structure depends upon the demand for the institutions. This, in turn directly depends upon the quality of education. Hence indirectly, the education quality aspect will require the focused efforts. In most pessimistic situations also, the Management and Medical Clusters are observed to be generating very attractive returns.

1.6.

PROJECT IMPLEMENTATION STRATEGIES

50. Looking at the international experience in PPPs in Education Sector and also at the financial strengths of this project, few PPP structures are being discussed below. Government Led Development: Some of the knowledge cities / Parks have been proposed in India on the concept where Government Agency will be responsible for delivering the core infrastructure services such as Land, Road, Water, Power, etc. After doing the land & common infrastructure development, Government would then roll out individual projects (clusters) on different formats of PPP based on their financial viability. Main features of this model are:
Government takes initiative in conceptualizing and developing the project with its own resources. Land acquisition and providing certain infrastructure facilities such as road, water, etc are to be taken up as initial development activities. Government then seeks Private Sector Participation for certain clusters which have high financial viability and where private sector efficiencies and expertise is needed. Separate contracts are to be signed between the Government and PSP (private sector party) awarding Concessions. Government takes responsibility of city level infrastructure development and for land acquisition.

This model, though most suitable under PPP format requires Government to make investments upfront. Government would prefer a PPP structure with lease recourse to the Government resources. Hence this structure is not being explored further. Single Developer Model (Real Estate Model): As common in real Estate Models, Government seeks private sector participation for the entire project from a single developer or a single Consortium of Developers. The Consortium is wholly and completely responsible for undertaking design, finance, construction and management activities for the project. Government would provide a set of development controls and guidelines and developer would follow the same while implementing the project and during its operation phase. The financial analysis reveals that project is not financially viable on stand-alone basis ((FIRR is merely 16% over 30years period) and would require support from the Government. Even if Government were to incentivise the Developer by offering land at nominal rates, developers may not find the project attractive. Private sector would look for about 25% post tax equity returns on the investments. Such kind of returns from this project may not be possible:
`

13

DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED

Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

EXECUTIVE SUMMARY OF KNOWLEDGE CITY

Since it will require Government to share certain development costs. The Project has been planned based on Cluster Led development model and with growth oriented approach. Since the project does not have very high demand at this stage, each cluster is developed linked with the demand and hence implementation of each cluster is over an extended period of time i.e. 20 30 years. Since the demand of the project is slowly developing over the period of 20-30 years, returns on the project are spread over longer period of time.

Joint Development Model: While planning the Project, Cluster led model has been found more suitable over Integrated City Approach. Also, demand for the project is building gradually over 30 years. These factors necessitate an implementation model where Government and Private Sector parties share the development, investment and commercial risks together. 51. Pursuant to the above, Joint Development PPP model is being recommended for this project. It is suggested that land acquisition risk is assumed by the Government along with the certain key infrastructure creation for the clusters/hubs. It also appears that Government will have to support General Studies cluster. City Level infrastructure component also comprise development of City centre. Financial analysis reveals that development of City level infrastructure component is possible thro PPP since it is offering a reasonable Project FIRR of 28.50%.
Government will seek interests from the Private Sector Partners (more than one party) for specific cluster financing and implementation. Private Sector will be interested in Medical science, Management and City Infrastructure cluster. In lieu of providing concessions for these viable clusters, Government can invite these private sector parties to form a Special Purpose Company (SPC). This SPC will be the holding Company and will be responsible for implementing the core infrastructure facilities. Government will be the majority shareholder in this SPC. If the core infrastructure costs are borne by the Government, the viability of overall project will improve. Separate project SPCs for different clusters such as medical sciences, Engineering, Management, etc will be incorporated from time to time for the implementation of different hubs. These will be the private companies and holding company (for the purposes of monitoring and regulation) may hold a small stake in these cluster level SPCs. The selected developers (who will be the stakeholders in Holding SPV) will finance, construct, operate and maintain each cluster/hub on PPP basis. This would be their incentive in participating in the Holding SPC. Government may be able to command good premium from the viable cluster such as Management, Engineering Hub and City Infrastructure. This premium will be utilized by the Government for creating Infrastructure and for land acquisition purposes (thro Holding SPV). The Cluster Level financial analysis reveals that Vocational Skill Development Centre is not financially viable. Skill Development Centers demand a different approach of PPP. Recently there have been some efforts in adopting PPPs for Industrial Training Institutes (ITI). Earlier to PPP approach, India has seen development of Private Industrial Training Centres but they have not been very successful for various reasons. The new PPP approach requires the state Government to identify one Institute Management Committees (IMC) and enter into an Agreement with it. The IMC undertakes responsibility related to management, training delivery and output. In a variation to this model, an Industry Association adopts an ITI and is fee to provide additional training staff, new management to impart skills and provide test/ certifications.

52.

Under this model Government may be able to fund its own share thro following:
budgetary allocations; charging premium from the more viable clusters such as Engineering, Medical and Management; and management studies. Use of certain central government schemes such as VGF funding, funds from Bi-lateral agencies that support education sector projects Clusters like Vocation training clusters can be implemented with partnerships with the Corporate houses. However, in these clusters Government will have to share the financing risk.

14

DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED

Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment)

EXECUTIVE SUMMARY OF KNOWLEDGE CITY

1.7.
53.

WAY FORWARD
The following steps will be a way forward to implement the project on Knowledge City.

a) Procurement of privately owned land and transferring it to the implementing agency or JV which will be responsible for development of Knowledge City. b) Setting up of a Joint Venture for mobilizing capital investment for promotion of the project. c) Creation of a special purpose vehicle/ agency to implement common infrastructure projects. d) Development of key infrastructure for water, power, and access to the project site. Bulk-water supply and improvement of access roads to the site is a way forward on this aspect. e) Identification of Institutions or promoters for development of facilities or clusters, along with collaboration with national and international Universities and institutions for quality facility and syllabi development. f) Identification of incentives on financial and infrastructure development which can be offered by Govt. of M.P. towards forming the JV and for clusters which are having lesser viability but needed for well-being of the region.

54. Early steps for Development of common infrastructure within the Knowledge City site for the main road, public transport, water management, and landscape etc. Subsequent to development of common physical infrastructure early steps must be taken to develop social infrastructure for housing, schools, health, entertainment, and other commercial facilities as an incentive to bring quality facility to Knowledge City in Ujjain.

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