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D a d r i N o i d a G h a z i a b a d I n v e s t m e n t R e g I o n

Pre-feasibility Study

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DELHI-MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION

LIMITED In association with

Integrated Industrial Township at Greater Noida

1 PROJECT BACKGROUND

1.1 The Government of India is developing the Delhi-Mumbai Industrial Corridor as a global manufacturing and investment destination. For this purpose, a Special Purpose Vehicle named the Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) has been incorporated for the development of various programme components of the DMIC project.

1.2 The development of the Delhi Mumbai Industrial Corridor (DMIC) is strongly linked to the Dedicated Freight Corridor (DFC) that has been conceived as a high capacity, high speed, freight only rail line by the Ministry of Railways under the Eleventh Five Year Plan of India (2007–2012). The DFC corridor covers about 2762 route km along two routes - the Eastern Dedicated Freight Corridor (EDFC) from Ludhiana to Dankuni and the Western Dedicated Freight Corridor (WDFC) from Jawaharlal Nehru Port, in Navi Mumbai to Dadri in the State of Uttar Pradesh ( Figure 1:Dedicated Freight Corridor Alignment Figure 1). This proposed DFC alignment is envisaged to be supplemented by significant infrastructure facilities proposed as part of DMIC which together will enhance the economic environment of the DMIC region and will support DFC in achieving its targeted potential of enhancing the rail based freight transport in the country.

Figure 1: Dedicated Freight Corridor Alignment



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1.3 Within the DMIC corridor seven investment regions (nodes) have been identified in the state of Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Gujarat and Maharashtra along the Dedicated Freight Corridor (DFC) (Figure 2). The investment regions (IRs) under DMIC are proposed to be self-sustained industrial townships with world-class infrastructure, road and rail connectivity for freight movement to and from ports and logistics hubs, served by domestic/ international air connectivity, reliable power and other quality social infrastructure, and provide a globally competitive environment conducive for setting up businesses.

Figure 2: DMICDC Investment Region Nodes

1.4 Of the various Investment Regions (IRs) identified under DMIC project one of the key investment regions is that of the Dadri-Noida-Ghaziabad Investment Region (DNGIR) in Uttar Pradesh (UP) sub-region of DMIC owing to its proximity to the National Capital of Delhi. This investment region has been conceived as a model industrial corridor of international standards, with emphasis on expanding the manufacturing and services base and of developing as a ‘Global Manufacturing and Trading Hub’. The region is expected to provide a globally competitive environment conducive for setting up businesses with as self-sustaining industrial townships and



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world-class infrastructure, connected by road and rail to ports and logistics hubs, equipped with reliable power supply and social infrastructure.

1.5 The development of an Integrated Industrial Township has been selected as a strategic project under preparation of Development Plan for Dadri-Noida-Ghaziabad Investment Region (DNGIR) in Uttar Pradesh (UP) sub-region of DMIC. A pre-feasibility for the project has been undertaken by the consultant appointed by DMICDC.

1.6 Lately, a lot of real estate activities have been witnessed in the region without commensurate manufacturing activities. The Integrated Industrial Township is an initiative of DMIC to drive manufacturing activity in the region in order to promote sustainable development. The township will act as a magnet to promote R&D activities, and will subsequently promote industrial development, in line with DMIC’s objective to promote industrial and manufacturing activities in the DNGIR region.

1.7 The site for the proposed Integrated Industrial Township is part of the delineated site for Delhi-Noida-Ghaziabad Investment Region (DNGIR), planned within the notified Greater Noida Master Plan-2021 area. It has a total site area of 302.5 Ha (747.5 acres). The proposed township is planned adjacent to the already developed sectors of Greater Noida and hence enjoys the availability of existing and proposed transportation networks and physical infrastructure. It is being planned with state-of-the-art infrastructure and new age planning principles for upcoming industrial townships supported by the surrounding proposed developments including logistics and passenger movement facilities such as the Multi Modal Logistics Hub (MMLH) and Multi Modal Transit Hub (MMTH) part of the site delineated for DNGIR. The land for the delineated site is already acquired or to be resumed by Greater Noida Industrial Development Authority (GNIDA).

1.8 The location of site in relation to the Greater Noida Master Plan & Dadri–Noida -Ghaziabad Investment Region is given in



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Figure 3: Site Location

1.10 Based upon historical and existing trends, inherent advantages of India and UP, existing status of the industry in the State, government policies, view of industry experts and potential investors, the Integrated Industrial Township is proposed with new age industry sectors such as Bio-technology, Hi-tech electronics industry, and Research and Development (R&D).

1.11 Bio-technology is planned as one of the key industry sectors in the Integrated Industrial Township and is likely to support allied sectors like food, pharma, healthcare and agriculture present in the UP region. Bio-pharma, bio-services (clinical research), bio-agri, bio-industrial and bio-informatics are some of the key sub-sectors that may be planned as part of bio-technology industries.

Proposed site for the Integrated Industrial Township



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1.12 Hi-tech industries are likely to include sub-sectors like fabrication industries, nanotechnology and optoelectronics.

1.13 The Integrated Industrial Township will also support research and development in key sectors like telecom, electronics, automobile, food, pharmaceutical, healthcare, and defence research sector. This is expected to give a boost to new product development, software development, auto design, drug design and pharmaceuticals, hardware and product design.

1.14 The project is proposed to act as a catalyst for fuelling the growth of industrial development of the region by attracting skilled human resource at the industrial township and generating direct industrial employment for about 58,000 workers. With a total investment of around Rs. 33,031.4 crore, the site is planned to generate a built-up space of around 6 million sqm. It will be planned as the first comprehensive built environment helping the launch of DMIC Investment Region, and at the same time showcasing the application of future city planning strategies for industrial setups in the region. It will help in strengthening the status of Greater Noida and Noida as a manufacturing destination. It will also encourage creation and growth of new businesses by fostering collaboration and innovation, also enhancing the development, transfer, and commercialization of technology. The project will also help to promote new sunrise industries with value addition to existing industries within the region.

1.15 In addition to the significant financial returns expected out of the project, the manufacturing hub is bound to generate a series of un-quantified economic benefits as direct benefits and through multiplier effect. The flagship industrial township planned to promote first of its kind “vertical” manufacturing and stack-up factory setup through innovative technological advancements will target foreign investors for setting up their manufacturing plants in the region. The increased foreign investments will in turn have a ripple effect on the overall economy of the region.

2 PROJECT OBJECTIVES

2.1 The Integrated Industrial Township is planned with the key objective to create a “knowledge based ecosystem” integrated with industries leading to innovation and economic development. The other prime objectives associated with the proposed Integrated Industrial Township are:

i. Catalyst for fuelling the growth of industrial development of the Investment Region by attracting skilled human resource at the Integrated Industrial Township;

ii. Strengthening the status of Greater Noida and Noida as a manufacturing destination;iii. Encouraging creation and growth of new businesses by fostering collaboration and innovation,

along with enhancing the development, transfer, and commercialization of technology;iv. Fostering collaboration between industries and existing/proposed educational institutes; andv. Promoting new industries with value addition to existing industries



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3 PROJECT COMPONENTS

3.1 The key project components of the Integrated Industrial Township, which is proposed to be developed as a smart city, include sectors like Hi-tech, Bio-tech, R&D and Knowledge Services forming the prime catalyst of this development to support a new, symbiotic relationship of community clustering surrounding the industrial development. The other important components that form the “community cluster” within the Integrated Industrial Township essentially include commercial, residential, research, recreation, office and administration uses.

3.2 The trunk level infrastructure within the site includes water, waste water and recycled water, storm water, power, internal road infrastructure and Bus Rapid Transport (BRT), underground utilities, IT/telecom infrastructure, and site level landscape infrastructure.

3.3 The trunk level infrastructure also includes an external Bus Rapid Transport (BRT) connectivity from the proposed Multi-modal Transport Hub at Boraki (part of DNGIR delineated site) to the proposed Integrated Industrial Township.

4 CONCEPT MASTER PLAN

4.1 Vision

4.1.1 The vision of the Integrated Industrial Township is to create a new type of industrial township model for India that may be referred as “Silver Wrapped in Gold” (Figure 4), whereby industry pillars like high tech, R&D, Bio-tech (silver), can become the high tech catalyst to support a new, symbolic relationship of community clustering to surround it (gold). The amenities surrounding the industrial clusters forming the “community” will essentially include commercial, residential, education, research, recreation, offices & administration uses. The industrial city will thus be planned with the key objective to create a “knowledge based ecosystem” integrated with industries leading to innovation and economic development.

Figure 4: ”SWIG” Silver Wrapped in Gold



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4.2 Key Design Principles

4.2.1 The Integrated Industrial Township is to be developed adopting the Sustainable City Model to facilitate the creation of a sustainable township with quality infrastructure and living environment promoting a live-work-learn-play environment within the proposed development.

4.2.2 Following are the key planning and infrastructure strategies that constitute the sustainable city model, along with other sustainable practices:

i. Integrated sustainable site infrastructureo Energy generation and managemento Water collection managemento Waste management

ii. Urban culture and public space – sustainable, livable solutions to improve quality of lifeiii. Sustainable planning, engineering, architecture, landscape solutionsiv. Sustainable building materialsv. Transport planning & mobility management

4.2.3 The concept master plan focuses to create a new model planned Integrated Industrial Township with all supporting amenities (including residential, education, research, commercial, recreation, offices & administration uses) which would form part of the mixed “community” proposed within the Integrated Industrial Township. The land use plan provides an opportunity to cater to varied needs and demands of individual units/ businesses/ housing requirements. Utilities have been integrated into the plan in order to provide for reliable and continuous infrastructure for the industrial units and residing population.

4.2.4 The spatial concept land use plan is illustrated in Figure 5.



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Figure 5: Land use distribution



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Figure 6: Concept master plan

Figure 7: Perspective view 1 - concept master plan



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Figure 8: Perspective view 2- concept master plan



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5 DEVELOPMENT PROGRAMME SUMMARY

5.1 The land use for the development program summarizes the major distribution of activities within the available site area of 302.5 ha. Approximately 51 percent of the total land is allocated for revenue generating industrial use. Of the remaining, a maximum of 32 percent has been used for transportation, utilities and green/ open spaces. The proposed land use allocation is provided in Table 1.

Table 1 : Development programme summary

Land use Area (Sq. m.) Area (ha) % F S I BUA (Sq.m.)

Industry 1,537,217 153.7 50.8% 3,458,738

Hi-tech Industries 638,113 63.8 21.1% 2.25 1,435,754

Bio-tech Industries 414,718 41.5 13.7% 2.25 933,116

R &D 484,386 48.4 16.0% 2.25 1,089,868

Commercial Mixed Use 190,441 19.0 6.3% 4 761,765

Residential 336,170 33.6 11.1% 5 1,680,848Utilities 46,434 4.6 1.5% 0.85 39,468Greens & Water Bodies 403,567 40.4 13.4% - -Roads 471,168 47.1 15.6% - -Existing Structures 39,924 4.0 1.3% - -Total Area (Sq. m.) 3,024,921 302.5 100% 5,940,818Total Area (Acres) 747.5 Acres



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5.2 With a global FSI of 2, the total built-up area amounts to approximately 5.9 million square meters. From the total developable area of 302.5 ha, approximately 50.8 percent area has been allocated for industrial use. Approximately 6.3 percent area has been allocated for commercial mixed use as support to the industrial use. These areas will provide facilities like retail commercial, hospitality, health services, training institute and other activities.

5.3 Approximately 11.1percent of the total land under Integrated Industrial Township has been allocated under residential use. The residential area has been planned along with all requisite facilities, amenities, commercial areas and green areas.

5.4 Around 1.5 percent of the area is under utilities housing facilities such as water works (WW), sewage treatment plant (STP), power infrastructure and auxiliaries. Approximately 30.3 percent of the total area has been allocated for green/ open, water bodies and roads. Large green areas have been provided as ‘breathing areas’ for the development providing an alternate environment for the industrial workforce within the township.

5.5 These green zones have also been coupled with major transport nodes, retail and entertainment activities. These green areas planned as lungs within the residential and institutional areas help create an internal environment conducive to the surrounding land use. These have been provided to cater to the needs of the residing population with the major retail and social infrastructure bordering the public parks increasing access and usability for recreational and cultural activities within the green open spaces.

5.6 The proposed Integrated Industrial Township is being planned with a focus on new planning concepts trying to achieve an integrated industrial master plan promoting a ‘Work-Live-Play-Learn’ environment. The combination of vibrant industrial spaces planned with other residential and mixed use commercial uses help to promote a ‘walk-to-work’ concept in the industrial township. The Integrated Industrial Township is also envisioned with a strong focus on landscape and open space design to enhance the identity and quality of the built environment for the worker and resident population. Land optimization through innovation in industrial clustering and building typologies will also help in achieving higher plot ratios and high-rise low-footprint facilities to maximize green cover percentage within the proposed Integrated Industrial Township.



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Figure 9: Industrial clusters



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Figure 10: Residential clusters

Figure 11: Perspective view of commercial cluster



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Figure 12: Commercial centre & residential linked to the central green space

6 BROAD COST ESTIMATES

6.1 Broad cost estimates of the physical infrastructure components are about Rs. 755.6 crore. Additional cost in terms of five percent contingencies and three percent detail design cost & quality control & project monitoring cost is also considered to arrive at a realistic cost of about Rs. 816.1 crore. These additional costs reflect the cost of detailed project report preparation, project monitoring and management during implementation, environmental monitoring and other administrative costs. The cost of the physical infrastructure in the initial phase 1 & 2 of the development is about Rs. 512.5 crore (including contingencies). As evident from the table, maximum capital investment is required in first four phases when most of the internal infrastructure will be required. Per acre development cost of the proposed Integrated Industrial Township comes to about Rs.1.09 crore/acre. Table 2 provides the summary of the cost estimates.

Table 2: Broad cost estimates – summary

S.No.

Component

Cost Phasing (INR Crore)

Phase 1&2 Phase 3&4 Phase 5&6 Total

1 Water Supply Infrastructure 13.4 4.6 0.0 18.0

2Sewerage and Recycling Infrastructure 25.3 19.4 0.0 44.7

3Strom Water Drainage Infrastructure 13.0 7.7 0.0 20.7

4 Power Infrastructure 108.7 101.4 1.8 211.9

5Transportation Infrastructure 194.6 48.6 0.0 243.2

6Underground Common Utility Infrastructure 54.4 0.0 0.0 54.4

7 Site Level Landscape 64.6 80.7 16.1 161.4

8IT & Broadband Infrastructure 0.65 0.65 0.0 1.3

Sub-total 474.6 263.0 18.0 755.6 Contingencies (5%) 23.7 13.2 0.9 37.8Detail Design Cost & Quality Control & Project Monitoring Cost at implementation stage (3%) 14.2 7.9 0.5 22.7TOTAL 512.5 284.1 19.4 816.1



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7 PROJECT COSTS

7.1 Overall cost for the project has been assessed to be around 33,031.4 Crore INR, of which an estimated 1,714.7 Crore INR is to be borne by the JVC under the implementation structure described in the subsequent section. This cost would include land costs and other trunk level infrastructures planned within the site will including water supply, waste water and recycled water, storm water, power, internal roads and Bus Rapid Transport (BRT), underground utilities, IT/telecom, and site level landscape infrastructure. The estimated capital costs for the phase 1 of the project is 2,167.8 Crore INR funded by private sector.

8 PROJECT IMPLEMENTATION STRUCTURE

8.1 The project is envisaged as an ‘Integrated Industrial Township’ to promote new age hi-tech Industries, bio-tech industries, and R&D industries along with commercial and residential facilities essential to support such townships.

8.2 A detailed project implementation strategy is worked out so as to successfully achieve the objective of the ‘Integrated Industrial Township’. The strategy is formulated keeping in mind the following factors:

i. Initial support to industries so as to facilitate promotion of new age industries in the township;ii. Ensuring that the supply of industrial units coincides with the market demand, and that there is

no over-supply; iii. Flexible approach – flexible to adjust strategy based on market dynamics; andiv. Capture unprecedented future potential



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Government of Uttar Pradesh DMIC Trust

Joint Venture Company

Provides for Land and Trunk Level Infrastructure

Phase-wise implementation of Project

Stage 1

Stage 2

Phase 1Phase 2

Phase 3Phase 4

Phase 5Phase 6



Figure 13: Project structure & implementation strategy



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8.3 The project is proposed to be executed in two stages:

i. Project Implementation - Stage 1: The Government of Uttar Pradesh and the DMIC Trust will form a ‘Joint Venture Company’ (JVC formed as an SPV for the project), to provide for land and trunk level infrastructure.

ii. Project Implementation - Stage 2: Invitation to Private players by the ‘JVC’ to execute the project in different phases.

8.4 Project Implementation Strategy- Stage 1

8.4.1 The stage 1 of the project implementation shall involve the following key steps:

i. The Government of Uttar Pradesh and the DMIC Trust will form a Joint Venture Company ‘JVC’ as a special purpose vehicle, to provide the land required for the township, and to build the trunk level infrastructure essential for the township.

ii. The trunk level infrastructure within the site will include water supply, waste water and recycled water, storm water, power, internal roads and Bus Rapid Transport (BRT), underground utilities, IT/telecom, and site level landscape infrastructure.

iii. The trunk level infrastructure will also include an external Bus Rapid Transport (BRT) connectivity from the proposed Multi-modal Transport Hub at Boraki (part of DNGIR delineated site) to the proposed Industrial Township.

iv. It is envisaged that the shareholding of both the equity holders of the JVC would be 50% each.



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8.4.2 The JVC shall provide the required land and set up the basic trunk infrastructure on the site so as to make the project attractive for private sector participation. The private participant will then need to incur only the capital cost required for the proposed project facilities. This will enhance the marketability of the project in turn encouraging private participation in the project. . The role of JVC shall be critical for the successful execution of the project as it will help in co-ordination with various other government agencies.

8.4.3 Key action task at this stage shall be that offsetting up of trunk level infrastructure. A consultant would be appointed by the JVC to carry out the preliminary design of the trunk level infrastructure. It is proposed that the trunk level infrastructure be executed as a ‘Design-Build’ (DB) contract.

8.4.4 The role of JVC is critical for the successful execution of the project as it would help to bring in co-ordination with various government agencies. The funding of trunk infrastructure by government is expected to improve the viability of the project and the expected returns of private participants.

8.4.5 After the completion of trunk infrastructure, the operation and maintenance would be carried out by an entity appointed by JVC by transparent bidding process.

8.5 Project Implementation Strategy - Stage 2

8.5.1 The project implementation stage 2 is planned to be executed into six different phases. The phase 1 is projected to be for five years, i.e. FY 2016 to FY 2020 and the phase 2,3,4,5 and 6 will be of 5 years each, and starting from FY 2021.

8.5.2 Phase 1: The JVC will invite a private developer/ (s) on ‘PPP’ basis to create signature buildings for hi-tech, bio-tech, R&D sector and an incubation center through a transparent bidding process.

i. The concession will be awarded for a period of 90 years;ii. The private developer shall further develop the buildings and lease the industry space to the

end users. A mechanism will be derived to share these rentals between JVC and the private developer;

iii. In addition, JVC may give right to develop commercial and residential space after the development of industrial space, to the developer to enhance the developer’s financial feasibility; and

iv. The private developer shall also transfer some built-up space to JVC that shall be used as an incubation center to promote innovative start-ups and to help create an industrial eco-system. In addition, JVC may also use this space either for its self-use or lease the space to the end-users



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8.5.3 The relevance of this phase shall be to trigger the development of township and to create signature buildings to act as a symbol of new age industrial infrastructure in the area. The successful implementation of this phase will act as a primer to attract industries to the Integrated Industrial Township and also facilitate the demand augmentation for subsequent phases.

8.5.4 Development of subsequent phases (2 to 6): It is proposed that the JVC shall carry out land monetization in phase 2 to phase 6, wherein the JVC shall monetize the available unutilized development potential to recover its cost of land and trunk level infrastructure.

8.5.5 The strategy will help JVC to gauge market sentiments that shall help JVC to strategize the land monetization based on the market forces. In addition, JVC will also be able to evaluate the performance of ‘PPP’ process in phase 1 and may carry out the execution in the next phases through ‘Public Private Partnership’ approach.

8.5.6 Further, it is proposed to have multiple private developers with requisite capabilities for carrying out the development. These developers shall be selected through a transparent bidding process.

9 ECONOMIC BENEFITS

9.1 In addition to the financial viability, the project has also been evaluated from economic point of view. The manufacturing hub is bound to generate series of un-quantified economic benefits as direct benefits and through a multiplier effect. Such a large scale labour-oriented facility will generate significant employment requiring staff for manufacturing and other operations. Further the direct employment would create a multiplier effect through each industry including backward and forward linkages with other sectors of the economy. These economic activities will in turn benefit the government in the form of various direct and indirect taxes. In addition, it would also help to improve the industrial output of the country. Besides, the facility will be transferred to government at the end of the concession period and there will be significant cash inflows for the JVC.

9.2 The flagship Integrated Industrial Township planned to promote first of its kind “vertical” manufacturing and stack-up factory setup through innovative technological advancements will attract foreign investors for setting up their manufacturing plants in the region. The increased foreign investments will have a ripple effect on the overall economy of the region.



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9.3 The vibrant industrial spaces planned with other residential and commercial uses will enable the promotion of ‘walk-to-work’ concept in the Integrated Industrial Township. This will have a positive impact on the overall quality of environment by reducing pollution and promoting a healthy lifestyle for workers and residents. The green open parks and cycle paths planned within the township promote walking, cycling and using other non-motorised modes of transport to work. Efficient transport planning for public modes of transport including BRT and future provision for Light Rail Transit (LRT) will discourage use of private mode of transport, leading to significant fuel savings.

9.4 Sustainable and green building practices will result in overall saving in water and power usage by helping to reduce the carbon footprint with use of advanced innovative technology produced and demonstrated in the Integrated Industrial Township.

10 STATUS OF PROJECT

10.1 M/s Halcrow Consortium (comprising of Halcrow Group Ltd., Halcrow Consulting India Pvt. Ltd., Synovate India Pvt. Ltd. and Knight Frank India Pvt. Ltd.) has carried out the pre-feasibility study for the project.

10.2 The land for the delineated site has already been acquired by Greater Noida Industrial Development Authority (GNIDA).

10.3 The project will need approvals from various agencies.

10.4 The draft of the Shareholders Agreement (SHA) has been sent to State Government.

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