Haryana

Haryana Dadri

Delhi-Mumbai Industrial Uttar

Rajasthan Pradesh
Corridor

Gujarat
Madhya
Department of Industrial Policy & Pradesh
Promotion (DIPP)
Ministry of Commerce & Industry
Government of India (MoCI) Maharashtra
J.N.Port
New Delhi
22 Aug, 2007
Overview
 Government of India initiated the development of DMIC along the
Dedicated Freight Corridor (DFC) to optimize on the connectivity
offered
 MOU relating to the project was signed between MoCI and METI,
Japan in December, 2006 to create the framework for mutual
cooperation
 At the instance of the MoCI, an Inter-Ministerial Group was formed to
evolve the Project Outline :
 MoCI appointed IL&FS Infrastructure Development Corporation in
March, 2007 to detail the project concept
 Pursuant to discussions with Central & State Government agencies,
IL&FS have since submitted their Report
 First Taskforce Meeting held at Tokyo on 25th May, 2007
 Second Task Force Meeting held at New Delhi on July 02, 2007
 Third and Final Task Force Meeting held at Tokyo on July 23, 2007 to
finalize the Concept Paper
Delhi-Mumbai Industrial Corridor (DMIC)
Haryana Dadri
Haryana
 The 1483-km long DFC Project to be
commissioned in 2012
Uttar
Rajasthan Pradesh  Focus is on ensuring high impact
developments within 150km distance
on either side of alignment of DFC
Gujarat
Madhya
 Area under Project Influence is 14%
Pradesh and population is 17% of the Country
 Total Population in the Project
Maharashtra
Influence Area : 178Mn
J.N.Port
 Total Workers in the Project Influence
Area: 70.56Mn
DFC Alignment As per Census-2001
End Terminal
 Ghaziabad
Existing Industrial
Dadri
Noida Belts
Faridabad
Alwar  Uttar Pradesh- Noida/ Greater
Noida, Ghaziabad
Jaipur
Jodhpur
(General Manufacturing)
Bhilwara  Haryana- Gurgaon, Faridabad,
Sonepat
Kota
(Automobile, Electronics,
Handloom)
 Rajasthan: Jaipur, Alwar,
Ahmedabad Kota, Bhilwara, Jodhpur
Anand (Marble, Leather, Textile)
Vadodara
Bharuch
Surat
 Gujarat: Ahmedabad,
Vadodara, Anand, Bharuch,
Surat (Engineering, Gems &
Nashik
Jewelry, Chemicals)

 Maharashtra: Mumbai,
Mumbai Pune Pune, Nashik (Auto/Auto
Component, Textile,
Pharma, Aluminum)
Vision for DMIC
“To create strong economic base with globally competitive
environment and state-of-the-art infrastructure to activate local
commerce, enhance foreign investments and attain sustainable
development”

 Delhi-Mumbai Industrial Corridor is conceived to be developed as

“Global Manufacturing and Trading Hub” supported by world class
infrastructure and enabling policy framework

Project Goals
 Double employment potential in five years (14.87% CAGR)

 Triple industrial output in five years (24.57% CAGR)

 Quadruple exports from the region in five years (31.95% CAGR)

Project Objectives

 Industrial Infrastructure
 Developing new industrial clusters
 Upgradation of existing industrial estates/clusters in the corridor
 Developing Modern Integrated Agro-Processing Zones with allied
infrastructure
 Development of IT/ITeS Hubs and other allied infrastructure
 Providing efficient logistics chain with multi-modal logistic hubs

 Physical Infrastructure
 Development of ‘Knowledge Hubs’ with integrated approach
 Feeder Road/Rail connectivity to ports, hinterlands and markets;
 Development of existing Port infrastructure and Greenfield Ports;
 Upgradation/ Modernization of Airports;
 Setting up Power Generation Plants with transmission facilities;
 Ensuring effective environment protection mechanism
 Development of integrated townships
Approach to Development of DMIC

 Infrastructure development- key to DMIC instead of additional fiscal or

financial incentives
 Units coming up would have the advantage of improved infrastructure
 A Regional development approach instead of isolated pockets
 Brownfield areas rather than greenfield in Phase-1 to ensure better cost
effectiveness
 Make development more harmonious by emphasizing local skill and agri
development
Strategy for Integrated Corridor Development
 The development strategy for the DMIC is based on the competitiveness
of each of the DMIC states :
 Holistic approach adopted to identify High Impact/Market Driven
Nodes along the DMIC
 Each Node will be self-sustained regions with world class
infrastructure and enhanced connectivity to DFC, Ports, and
Hinterlands
 Market Driven Nodes are proposed to be in two categories
 Investment Regions - Approx. 200 sq km Area (Minimum)
 Industrial Areas - Approx. 100Sqkm Area (Minimum)
 A total of 24 Nodes have been identified in consultation with State
Governments :
 11 Investment Regions
 13 Industrial Areas
Strategy for Integrated Corridor Development
 Criteria for Selection of Investment Region
 Each DMIC State to have at least one node to spread economic benefit

 Proximity to major urban agglomerations

 Potential for Developing Greenfield Ports (or) Augmentation

 Availability of land parcels and established industrial base

 Criteria for Selection of Industrial Area:

 To take advantage of inherent strengths of specific locations
 Mineral Resources
 Agriculture
 Industrial development, and,
 Skilled Human Resource base

 To spread the benefits of the corridor the project will also seek to link
Under-Developed Regions along the Corridor to Well Developed Regions
Nodes for Phase-1 Development
Haryana
Haryana a
Dadri
2 1 Short listed Investment Regions:
3 b Uttar Dadri-Noida-Ghaziabad (Uttar Pradesh);
Rajasthan Pradesh
1)
c 2) Manesar-Bawal Region (Haryana);
3) Khushkhera-Bhiwadi-Neemrana
(Rajasthan);
Gujarat f
4) Bharuch-Dahej (Gujarat);
Madhya 5) Igatpuri-Nashik-Sinnar (Maharashtra);
d Pradesh
4 6 6) Pitampura-Dhar-Mhow(Madhya Pradesh)

5 Maharashtra Short listed Industrial Areas:

J.N.Port a) Meerut-Muzaffarpur (Uttar Pradesh)
e
b) Faridabad-Palwal (Haryana)
c) Jaipur-Dausa (Rajasthan);
DFC Alignment
d) Vadodara-Ankleshwar (Gujarat);
Investment Region (Min.200SQKM) e) Dighi Port (Maharashtra);
f) Neemuch-Nayagaon (Madhya Pradesh)
Industrial Area (Min.100SQKM)
Nodes for Phase- 2 Development
Haryana
Haryana 7 Dadri
g Investment Regions:
Uttar 7) Kundli-Sonepat (Haryana);
Rajasthan Pradesh
8 8) Ajmer-Kishangarh (Rajasthan);
h 9) Ratlam-Nagda (Madhya Pradesh);
i
10) Ahmedabad-Dholera (Gujarat);
Gujarat 11) Dhule-Nardhanda (Maharashtra)
m Madhya
10 9 Pradesh
Industrial Areas:
j g) Rewari-Hissar (Haryana);
k 11 Maharashtra h) Rajsamand-Bhilwara (Rajasthan);
J.N.Port i) Pali-Marwar (Rajasthan);
l j) Surat-Navsari (Gujarat);
k) Valsad-Umbergaon with Maroli
Greenfield Port (Gujarat);
DFC Alignment
l) Pune-Khed (Maharashtra);
Investment Region (Min.200SQKM)
m) Shajapur-Dewas (Madhya Pradesh);
Industrial Area (Min.100SQKM)
 Components of Each Industrial Node

 Industrial Infrastructure
 New Industrial Clusters/ Parks/ SEZs
 Upgradation of existing industrial estates/clusters
 Modern Integrated Agro-Processing Zones with allied infrastructure
 IT/ITES Hubs and other allied infrastructure
 Efficient logistics chain with integrated multi-modal logistic hubs

 Physical Infrastructure
 Knowledge Cities / Skill Development Centers with integrated approach
 Augmentation of Existing Port infrastructure & Greenfield Port
Development;
 Upgradation/ Modernization of Airports;
 Power Generation Plants with transmission facilities;
 Feeder Road/Rail connectivity to ports, hinterlands and markets;
 Dovetailed integrated townships catering to investor countries
 Effective Environment Protection Mechanism
Soft Infrastructure for DMIC
 Initiatives for Skill Enhancement
 Skill Development Centers/ Centers of Excellence planned through out the
investment regions/ industrial areas

 Streamlined Administrative Procedures

 Each Node will contain one or more Special Economic Zones, which are
empowered by the Act to provide necessary clearances themselves
 Each State Government will constitute an empowered authority for each of
the investment region/ industrial area
 These authorities to have delegated powers, from State Government, to
take decisions locally

 Policy Regime for DMIC

 Movement of Goods through roads is proposed to be facilitated without
interruption by use of IT
 A Dialogue to be started with State Transport Ministers for a Unified Policy
Regime for uninterrupted and low cost movement of material and efficient
 Government of India has already announced Road Map for ‘Goods and
Service Tax’ to adopt by 2010 which replaces central and state taxes into
a unified tax regime
Key Issues in Project Implementation
 The complexity of implementing the DMIC will require rigorous
detailing of all aspects of the project prior to implementation :
 Engineering
 Environmental
 Social
 Financial
 Contractual, etc
 The size of the project also emphasizes the need for implementation of
project in phases. This will be critical in ensuring its sustainability
 Given the involvement of multiple Ministries and multiple state
governments an effective framework for co-ordination is critical
 The DMIC Project involves an investment of US$ 90 bn with 60-70
different projects. An a priori strategy for the mobilization of finances
to cover each phase of the project will also be critical
 Four-Tier Implementation Structure
 An Apex Authority, Headed by the Finance Minister with concerned Central
Ministers and Chief Ministers of respective DMIC States as Members;

 A Corporate Entity, referred as DMIC Development Corporation (DMICDC), to

coordinate Project Development, Finance and Implementation;
 A Program Management Consultant (Joint Consultant) will work under
DMICDC for overall planning, monitoring and financial advisory services

 State-level Coordination Entity for coordination between DMICDC, various State

Govt. Entities and Special Purpose Vehicles (SPVs);

 Project specific Special Purpose Vehicles (SPVs) to implement individual project

components viz. Industrial Areas/SEZs, Roads, Power, Ports, Airports etc
Implementation Framework
DMIC Steering Authority
(Headed by Finance Minister, with concerned
Central Ministers & Chief Ministers as Members)

DMICDC
(A Corporate Entity with representation from
Central & State Govt. Agencies, FIIs and DFC)

Master Development Plan, Techno-Economic Feasibility

Studies, Business Plans, Projects Prioritization, Bundling &
Unbundling of Projects to Central/Line Ministries & State Govt

State-level Coordination Entity/ Nodal

Agency

Project Specific Special Purpose Companies

(SPC)
(For both Central & State Govt Projects viz. Ports,
Airports, Roads, Industrial Areas, Power etc)

Approvals & Clearances (FIPB, NSC, MOEF etc), Monitoring & Commissioning of Projects,
Financing Arrangement etc

Project-1 Project-2 Project-3 Project-4

Financial Structure of the DMICDC
 49 % equity contributed by GOI

 51 % equity contributed by Financial Institution(s) and

other Infrastructure organizations

 Loans facilitated by DMICDC – as a pass-through

arrangements for specific projects

 Project Development Funds contributed by GOI, GOJ and

FIs
Project Development Fund (PDF)
 Magnitude and importance of Project necessitates creation of Project
Development Fund:
 Cost of Project development would be substantial
 Funding would need to be accessed from variety of sources-Central
and State Govt., Indian and Foreign investors, bilateral and
multilateral Institutions
 Investments to be recovered from PPP projects

 USD 250 mn to be raised as Project Development Fund from Govt of

India, Japan and FIs

 The PDF to be used specifically for all Project Development Activities to

reach technical and financial closure

 PDF ensures availability of finance to get projects off the ground

Commitment of DMIC States

 Each State Government will notify a nodal agency to coordinate with

DMICDC, State level agencies, and SPVs

 Coordinates implementation of investment regions/ industrial areas in

each state;

 Assists in acquiring the land necessary for setting up infrastructure,

processing and non-processing areas;

 Facilitates all clearances required from the State Government

 Arrange requisite funding for development of infrastructure, through

budgetary resources or by availing existing schemes of GoI

 Ensures world class physical infrastructure and utilities, linkages under

its jurisdiction within a stipulated time frame after notifying the location
 Project Specific SPVs
 Implementation of specific components of industrial nodes

 Projects to be awarded to operators with all relevant clearances and

through a transparent bidding process

 Project Operators to raise finances, implement and operate the project

 Independent Board of Directors for each SPV

 Debts to be raised domestically and externally

 Debts could also be raised by DMICDC and passed on to SPVs

Funding Perspectives for DMIC
 Project Development Phase :
 Estimated Requirement
 Suggested Structure
 Project Developer
 Recovery of Investment
 Contributors
 Project Implementation Phase :
 Estimated Requirements
 Suggested Structure
 Critical Requirement
: USD 250 mn
: Venture Capital Fund
: DMICDC
: From successful bidders
: Need for ODA/grants
: USD 90 bn
: SPV
: Long term equity
Long term debt/sub-debt
Viability Gap Funding
Debt Service Reserve
 Opportunities in DMIC
 EPC/O&M Contracts
 Project promotion & equity participation in various
implementing SPVs
 Providing long-term debt
 Industrial Investment (manufacturing & services)
 Contribution to PDF on commercial basis
 Summary-
Infrastructure Development Initiatives in DMIC
 Development of 10,000MW Power Generation Capacity
 Development of Three Greenfield Ports
 Dholera & Maroli in Gujarat, Dighi Port in Maharashtra;
 Augmentation of Two Ports (Dahej and Hazira) in Gujarat
 Augmentation of Six/Seven Airports
 Greater Noida (Uttar Pradesh); Udaipur/ Jodhpur (Rajasthan);
 Indore (Madhya Pradesh); Vadodara and Surat (Gujarat); Nashik & Pune (Maharashtra);
Air Strips at Dholera & Neemrana
 Construction/ Augmentation of 2500km long feeder rail linkages
 Summary-
Infrastructure Development Initiatives in DMIC
 Augmentation/ Construction of 4000km feeder roads (State Highways etc)
besides up gradation of National Highways
 Construction, Operation and Maintenance of Logistics Hubs, Container Terminals
 Development of Industrial Areas, SEZs/ Agro-Processing Hubs
 Integrated Townships, IT/ITES Hubs, Biotechnology Parks
 Knowledge Cities/ Centers of Excellence/ Skill Development Centers
Thank You