delhi mumbai industrial corridor (dmic)

DELHI MUMBAI INDUSTRIAL CORRIDOR (DMIC)

BY

DHRUBA PURKAYASTHA 2012CEZ8458 SHEBA SUSAN GEORGE 2012CET2226

STRUCTURE

The Concept of Industrial Corridor

DMIC

Institutional Structure And Development Models

Financing Mechanism And Expected Investment

Impact Of DMIC On Manufacturing Sector

INDUSTRIAL CORRIDOR

Cities

DMIC

Emerging landscape of global investment 1483 km Dedicated Freight Corridor with

end terminals at Dadri in NCR Delhi and Jawaharlal Nehru Port near Mumbai

14% of area, 20% of India’s population, 40-50% of GDP

GOAL double employment potential in 7 years triple industrial output in 9 years and quadruple exports from the region in 8-9

years

DMIC

Source: India’s Urban Awakening: Building inclusive cities, sustaining economic growth-McKinsey Global Institute, April 2010l

DMIC 40% of India’s population will be urban by

2030

DMIC cities will help to meet pressures of urbanisation and also lead to economic growth

DECENTRALISED REGIONAL DEVELOPMENT

DMIC NODESSelection Criteria for Investment Region To ensure at least one such node in each of the DMIC

State to spread economic benefits Benefit from the proximity to Metropolitan Areas as Delhi,

Mumbai Potential for Developing Greenfield Ports or Augmentation

Possibilities Easy Availability of such huge land parcels and

established industrial baseSelection Criteria for Industrial Area To take advantage of inherent strengths of specific

locations (mineral resources, rich agriculture base, availability of skilled human resource base, potential for setting up specific group of industries)

Opportunity to transform under developed regions along the corridor to developing or well developed regions

NODES FOR PHASE I DEVELOPMENT

DFC Alignment

Investment Region (Min.200SQKM)

Industrial Area (Min.100SQKM)

Haryana Dadri

J.N.Port

1

c

d

5

4

Rajasthan

Maharashtra

Gujarat

b

e

Madhya Pradesh

32

a

f

6

Haryana

Uttar Pradesh

NODES FOR PHASE II DEVELOPMENT

DFC Alignment

Investment Region (Min.200SQKM)

Industrial Area (Min.100SQKM)

Dadri

J.N.Port

h

l

k

10

j

7g

i

Rajasthan

Maharashtra

Gujarat

Madhya Pradesh9

m

Haryana

Uttar Pradesh

11

8

SUSTAINABLE DEVELOPMENT

Polycentric structure with key commercial and community nodes

Integration of land uses encouraging mixed-use development

Integration of existing villages into the new city Focus on efficient infrastructure systems and

renewable energy sources Conservation of the better agricultural land Protection of the sensitive natural environment Phased development programme allowing

incremental growth

MIXED USE DEVELOPMENT

INTEGRATING EXISTING VILLAGES

TRANSIT AND WALKABILITY

PROMOTE GREEN BELT

WORLD CLASS INFRASTRUCTURE

INFRASTRUCTURE PROJECTS REQUIRED

INSTITUTIONAL STRUCTURE

Apex Authority called the DMIC Steering Authority

DMICDC (Delhi Mumbai Industrial Corridor Development Corporation)

State-level Coordination Entity/ Nodal Agency Project Specific Entities such as Special

Purpose Vehicles for individual projects

PROJECT IMPLEMENTATION FRAMEWORK

INSTITUTIONAL FRAMEWORK FOR EACH MANUFACTURING CITY

FINANCING MECHANISM

Through nodal agencies by means of budgetary provision or

Viability Gap Funding or long term loans extended to Special Purpose

Vehicles. Creation of a Project Development Fund

(PDF) Estimated requiremento project development stage is USD 250

milliono project implementation stage is USD 90

billion

PROCEDURES OF YEN LOAN

MECHANISM OF YEN FINANCING

IMPACT ON MANUFACTURING SECTOR

India’s lack of manufacturing competitiveness India’ share at around 1.4% of global trade

in manufactured products Contribution of Manufacturing to India’s

GDP has remained stagnant at around 17% over the last many years, whereas it is 53% in China and between 25 -30 % in South East Asia

Government of India (GoI) has created the National Manufacturing Competitiveness Council (NMCC)

India Manufacturing Strategy paper National Manufacturing Competitiveness

Program by the Ministry of Micro Small and Medium Enterprises

IMPACT ON MANUFACTURING SECTOR

New Manufacturing Policy is under development at the Department of Industrial Promotion and Policy

TARGET is to increase share of manufacturing to about 25% of GDP

DMIC Project goals National Manufacturing Investment Zones

(NMIZs)

CHALLENGES

Public funding Vs PPP Monetization of land values De-politicisation of land values Detailed Engineering & Programme

Management Technology- Life Cycle cost of technology Vs

Life Institutional System- Governance of new

cities Challenge of Water and Sewage

REFERENCES Concept Paper on Delhi-Mumbai Industrial Corridor,

August 2007, Department of Industrial Policy and Promotion Ministry of Commerce and Industry, Government of India.

Official Website of Delhi Mumbai Industrial Corridor Development Corporation http://www.dmicdc.com/

http://delhimumbaiindustrialcorridor.com/financial-analysis-of-dmic-project.php

Delhi-Mumbai Industrial Corridor, Presentation by Department of Industrial Policy and Promotion (DIPP), Ministry of Commerce and Industry Government of India (MoCI).

Delhi Mumbai Industrial Corridor (DMIC) Project Presentation by Centre for Science and Environment, India.