New Delhi

1
Delhi-Mumbai Industrial Corridor
Department of Industrial Policy Promotion
(DIPP) Ministry of Commerce Industry Government
of India (MoCI)

• New Delhi
• 22 Aug, 2007

2
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 ILFS Infrastructure Development
  Corporation in March, 2007 to detail the project
  concept
• Pursuant to discussions with Central State
  Government agencies, ILFS 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

3
Delhi-Mumbai Industrial Corridor (DMIC)
Haryana
Dadri
Haryana

• The 1483-km long DFC Project to be commissioned
  in 2012
• Focus is on ensuring high impact developments
  within 150km distance on either side of alignment
  of DFC
• Area under Project Influence is 14 and
  population is 17 of the Country
• Total Population in the Project Influence Area
  178Mn
• Total Workers in the Project Influence Area
  70.56Mn
• As per Census-2001

Rajasthan
Uttar Pradesh
Gujarat
Madhya Pradesh
Maharashtra
J.N.Port
DFC Alignment
End Terminal
4
Existing Industrial Belts
Ghaziabad
Dadri
Noida
Faridabad

• Uttar Pradesh- Noida/ Greater Noida, Ghaziabad
• (General Manufacturing)
• Haryana- Gurgaon, Faridabad, Sonepat
• (Automobile, Electronics, Handloom)

5
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)

6
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

7
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

8
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

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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

10
Nodes for Phase-1 Development

• Short listed Investment Regions
• Dadri-Noida-Ghaziabad (Uttar Pradesh)
• Manesar-Bawal Region (Haryana)
• Khushkhera-Bhiwadi-Neemrana (Rajasthan)
• Bharuch-Dahej (Gujarat)
• Igatpuri-Nashik-Sinnar (Maharashtra)
• Pitampura-Dhar-Mhow(Madhya Pradesh)
• Short listed Industrial Areas
• Meerut-Muzaffarpur (Uttar Pradesh)
• Faridabad-Palwal (Haryana)
• Jaipur-Dausa (Rajasthan)
• Vadodara-Ankleshwar (Gujarat)
• Dighi Port (Maharashtra)
• Neemuch-Nayagaon (Madhya Pradesh)

11
Nodes for Phase- 2 Development
Haryana
Haryana
7
Dadri
g

• Investment Regions
• Kundli-Sonepat (Haryana)
• Ajmer-Kishangarh (Rajasthan)
• Ratlam-Nagda (Madhya Pradesh)
• Ahmedabad-Dholera (Gujarat)
• Dhule-Nardhanda (Maharashtra)
• Industrial Areas
• Rewari-Hissar (Haryana)
• Rajsamand-Bhilwara (Rajasthan)
• Pali-Marwar (Rajasthan)
• Surat-Navsari (Gujarat)
• Valsad-Umbergaon with Maroli Greenfield Port
  (Gujarat)
• Pune-Khed (Maharashtra)
• Shajapur-Dewas (Madhya Pradesh)

Rajasthan
Uttar Pradesh
8
h
i
Gujarat
m
Madhya Pradesh
9
10
j
11
k
Maharashtra
J.N.Port
l
DFC Alignment
Investment Region (Min.200SQKM)
Industrial Area (Min.100SQKM)
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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

13
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

14
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

15
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

16
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
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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

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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

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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

20
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

21
Funding Perspectives for DMIC

• Project Development Phase
• Estimated Requirement USD 250 mn
• Suggested Structure Venture Capital Fund
• Project Developer DMICDC
• Recovery of Investment From successful bidders
• Contributors Need for ODA/grants
• Project Implementation Phase
• Estimated Requirements USD 90 bn
• Suggested Structure SPV
• Critical Requirement Long term equity
• Long term debt/sub-debt
• Viability Gap Funding
• Debt Service Reserve

22
Opportunities in DMIC

• EPC/OM Contracts
• Project promotion equity participation in
  various implementing SPVs
• Providing long-term debt
• Industrial Investment (manufacturing services)
• Contribution to PDF on commercial basis

23
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

24
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

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Thank You