Delhi–Mumbai Industrial Corridor Project

The Delhi–Mumbai Industrial Corridor Project (DMICDC) is a planned industrial development project between India's capital, Delhi and its financial hub, Mumbai. It is one of the world's largest infrastructure projects with an estimated investment of US$90 billion and is planned as a high-tech industrial zone spread across six states,[1] Delhi being a Union Territory,[2] across the 1,500 km long Western Dedicated Freight Corridor which serves as its backbone.[3]

It includes 24 industrial regions, eight smart cities, two international airports, five power projects, two mass rapid transit systems, and two logistical hubs.[3] The eight investment regions proposed to be developed in Phase I of DMIC are Dadri-Noida-Ghaziabad (in UP), Manesar-Bawal (in Haryana), Khushkhera-Bhiwadi-Neemrana and Jodhpur-Pali-Marwar (in Rajasthan), Pithampur-Dhar-Mhow (in MP), Ahmedabad-Dholera Special Investment Region (SIR) in Gujarat, the Shendra-Bidkin Industrial Park, and Dighi Port Industrial Area in Maharashtra.[3]

The project has received a major boost from India and Japan, due to an agreement to set up a project development fund with an initial size of ₹1,000 crore (US$139.3 million).[4] The Japanese and Indian governments are likely to contribute equally. The work is progressing at a rapid pace, with the dedicated freight corridor expected to be completed by December 2019.[5]

Background

The genesis of the project goes back to China's preparation for the 2008 Beijing Olympics, which triggered a diversion of India's iron ore exports from Japan to China, in order to feed the increased infrastructure requirements for the then upcoming games. Japan, which was importing large quantities of iron ore from India, was negatively affected as it had to maintain a reliable source of iron ore imports to feed its long established industrial sector. Efforts to procure ore from alternate sources in India were logistically difficult and not cost effective. This inspired the then Japanese Ambassador to India, to raise the idea of building an efficient freight corridor along the lines of the Tokyo – Osaka corridor (Taiheiyō Belt).[6]

Benefits & ROI

Investment and financing

Project initially aims for USD$100 billion direct investment in this scheme, excluding investment in other associated schemes. Anand Sharma, former minister, from The Ministry of Commerce and Industry had proposed the establishment of a US$90 billion revolving fund with matching contribution from India and Japan to kick-start the implementation process of the US$90 billion Delhi Mumbai Industrial Corridor Project.[7] The ambitious project will be funded through private-public partnership and foreign investment. Japan will be a major investor for this project. The corridor will span 1483 km. $4.5 billion was being initially funded by the Japanese government as a loan for a period of 40 years at a nominal interest of 0.1%.[8] The industrial corridor project will be implemented by the Delhi-Mumbai Industrial Corridor Development Corporation, an autonomous body composed of government and the private sector.

Target businesses and companies

To provide impetus to Make in India, supported by Startup India and Standup India, a total of 24 special investment nodes are conceived to be created by the government, that would support manufacturing, however, any type of industry could be set up. The main role of these hubs is to facilitate businesses, set up their factories quickly without any hiccups in land acquisition and resources, and providing cheap, fast, and efficient transportation to ports and the rest of the nation. The government would play the role of the facilitator to encourage businesses to invest more by providing a "stable environment".

Employment generation

Conceived as a global manufacturing and trading hub, the project is expected to double employment potential, triple industrial output and quadruple exports from the region in five years.The project is expected to generate 3 million jobs, largely in manufacturing. The labor availability is approximately 50 million in the immediate influence zone and over 250 million across the states where the project will pass through. There are several high quality and renowned educational institutions across the states such as IIT, IIM, and Birla Institute of Technology and Science. Many more institutes such as Indian Institute of Information Technology are planned along the corridor.

Scope

DMIC will include the development of the 1540 km long Western Dedicated Freight Corridor (WDFC) with 24 nodes (investment regions and industrial areas), including six large investment regions of 200 square kilometers, and will run through 6 states: Delhi, western Uttar Pradesh, southern Haryana, eastern Rajasthan, eastern Gujarat, and western Maharashtra. Will also have influence zone and nodes in the 7th states of Madhya Pradesh.

Summary by states

  • Delhi, 115 km (1.5%) in WDFC
  • Uttar Pradesh, 22 km (1.5%) in WDFC with 1 investment region and 1 industrial area:[9] Node-1: Dadri-Noida-Ghaziabad Investment Region and Node-2: Meerut-Muzaffarnagar Industrial Area (MMIA).
  • Haryana, 130 km (10%) of WDFC and 66% of the state is in influence area of DMIC zone with 1 investment region and 2 industrial areas:[10][11] Node No.3: Faridabad-Palwal Industrial Area (FPIA), Node No.4: Rewari-Hisar Industrial Area (RHIA), Node No.6: Manesar-Bawal Investment Region (MBIR).
  • Rajasthan, 553 km (39%) of WDFC and 58% state is in DMIC zone, with 2 investment regions and 3 industrial areas[12] Node No.7: Khushkhera-Bhiwadi-Neemrana Investment Region (KBNIR), Node No.8: Jaipur-Dausa Industrial Area (JDIA), Node No.9: Ajmer-Kishangarh Investment Region (AKIR), Node No.10: Rajsamand-Bhilwara Industrial Area (RBIA), Node No.11: Pali-Marwar Industrial Area (JPMIA).
  • Gujarat, 565 km with 2 investment regions and 3 industrial areas:[13][14] Node No.12: Ahmedabad-Dholera Investment Region (ADIR), Node No.13: Vadodara-Ankleshwar Industrial Area (VAIA), Node No.14: Bharuch-Dahej Investment Region (BDIR), Node No.15: Surat-Navsari Industrial Area (SNIA), Node No.16: Valsad-Umbergaon Industrial Area (VUIA).
  • Maharashtra, 150 km (10%) of WDFC and 18% in influence area of DMIC zone with 2 investment regions and 2 industrial areas: Node No.17: Dhule-Nardhana Investment Region (DNIR), Node No.18: Igatpuri-Nashik-Sinnar Investment Region (INSIR), Node No.19: Pune-Khed Industrial Area (PKIA) and Node No.20: Dighi Industrial Area & Port (DIAP).
  • Madhya Pradesh, zero length of WDFC and 1% of the state is in influence area of DMIC zone, with 2 investment regions and 2 industrial areas:[15] Node No.21: Neemach-Nayagaon Industrial Area (NNIA), Node No.22: Shajapur-Dewas Industrial Area (SDIA), Node No.23: Ratlam-Nagda Investment Region (RNIR) and Node No.24: Pithampur-Dhar-Mhow (Indore) Investment Region (PDMIR).

Delhi

Delhi, 115 km (1.5%) of WDFC.

Uttar Pradesh

Uttar Pradesh, 22 km (1.5%) of WDFC[9]

Haryana

Haryana, 130 km (10%) of WDFC and 66% of the state is in influence area of DMIC zone, will have two investment regions and two industrial areas[10][11]

Node No.3: Faridabad-Palwal Industrial Area (FPIA)

Will be developed in subsequent phases in Faridabad district and Palwal district

Node No.4: Rewari-Hisar Industrial Area (RHIA)

Node No.4: Rewari-Hisar Industrial Area (RHIA) will be developed in subsequent phases in Rewari district and Hisar (district).

Node No.5: Kundli-Sonepat Investment Region (KSIR)

Will be developed in subsequent phases in Sonepat district

Node No.6: Manesar-Bawal Investment Region (MBIR)

will be developed in Phase I during 2014-2017

Rajasthan

Rajasthan, 553 km (39%) of WDFC and 58% of the state is in influence area of DMIC zone, will have two investment regions and three industrial areas[12]

Node No.7: Khushkhera-Bhiwadi-Neemrana Investment Region (KBNIR)

includes Bhiwadi Dry Port at Bhiwadi

Node No.8: Jaipur-Dausa Industrial Area (JDIA)

across Jaipur district(phulera) and Dausa district

Node No.9: Ajmer-Kishangarh Investment Region (AKIR)

across Ajmer district and Kishangarh district

Node No.10: Rajsamand-Bhilwara Industrial Area (RBIA)

across Rajsamand district and Bhilwara district

Node No.11: Pali-Marwar Industrial Area (JPMIA)

across Jodhpur district, Pali district and Marwar district

Gujarat

565 km[13][14]

Node No.12: Ahmedabad-Dholera Investment Region (ADIR)

Dholera is part of Phase-I under implementation.[16]

Maharashtra

150 km (10%) of WDFC and 18% of the state is in influence area of DMIC zone

Node No.17: Dhule-Nardhana Investment Region (DNIR)

Includes Shendra – Bidkin Industrial Park in Aurangabad district. At Shendra Bidkin, already allotted 35 plots, where Korean player Hyosung is setting up a spandex unit for Rs 3,000 crore (updated c. Feb 2018).[16]

Node No.18: Igatpuri-Nashik-Sinnar Investment Region (INSIR)

3,500 hectares for land acquisition for the industries on the stretch between Sinnar and Igatpuri. Property rates gradually increases in this region .

Madhya Pradesh

Madhya Pradesh, zero length of WDFC and 1% of the state is in influence area of DMIC zone[15]

Node No.22: Shajapur-Dewas Industrial Area (SDIA)

DMIC Infrastructure

Some of the big notable cities are already in various stages of development such as IMT MAnesar in Haryana, Gujarat International Finance Tec-City, Dholera SIR, and a Vikram Udyog Nagari, near Ujjain.

Energy

In order to meet energy demands of the expected growth along the corridor, the Government of India predicted a need of at least 100,000 MW by 2012. To help meet this number the DMIC will be building power plants that provide around 4000 MW each. While the final number of power plants to be built is still unknown the DMIC plans on powering them with Coal, Gas, and Lignite.[22]

Sewage and water treatment

{{see also | Water pollution in India|| Due to Singapore's successful water management system, India has brought in six Singaporean consultants, one is Jurong International, to draw up plans for the new cities involved.[23]

DMIC Connectivity

Ports: exports and logistics

Three Sagarmala ports CEZs

Out of 14 Sagarmala mega Costal Economic Zones (CEZ) ports projects, three of these mega CEZs fall in DMIC corridor. Each CEZ with the area of 2,000 to 3000 km2 will have several Costal Economic Units (CEU), and in turn each CEU will have several Port-Linked Industrial Clusters (PLIC). "Costal Economic Units" (CEU) serve as nodes within CEZ, each CEU industrial is an industrial estates with multiple industries. Each "Port-Linked Industrial Clusters" (PLIC) within CEU will have several manufacturing units.[24][25][26]

Benefits include national GDP growth with ease of doing business by boosting export by US$100 billion, 150,000 job creation by 2025, reduction in export cargo logistics cost and time, and increased global competitiveness of Indian exports.[24][25][27] 60 million Small and medium-sized enterprises in India contribute 90% to total national industrial production, and he foreign trade policy aims to increase share of exports in world currently (November 2017)) from under 2 to 3.5%.[28] Growth has been constrained by inadequate investment in port infrastructure. Cargo handling at many of the country's ports is painfully slow compared to major ports elsewhere in Asia. Port projects worth $2.3 billion are currently in progress for the upgrade of capacity from 963 million tons in 2010 to 3.1 billion tons in a few years. Much of this expansion will depend on private sector investment, particularly from major terminal operators like DP World and APM Terminals who already have a presence in India.

Costal Economic Zones (CEZ) is a component of sagarmala scheme aimed at port-led industrial development of 14 business-friendly Coastal Economic Zones (CEZ) with the investment of ₹6,500,000 million (US$91 billion or €77 billion), centered around ports in India spread across national coastline of 7,500 km, by using Make in India indigenous manufacturing scheme. Sectors targeted for manufacturing units are maritime and inland waterways, water transport, coastal and cruise shipping, and solar and wind energy generation, auto, telecom and IT, etc. Each CEZ will cover economic region consisting of several coastal districts with strong linkage to the ports in that region. Each CEZs will also create synergy with industrial corridors passing through the region, such as Delhi–Mumbai Industrial Corridor Project, Mumbai-Bangalore economic corridor, Dedicated Freight Corridor, Chennai Bangalore Industrial Corridor, Visakhapatnam–Chennai Industrial Corridor and Amritsar Delhi Kolkata Industrial Corridor, etc.[24][25][26][27]

Dry inland ports

Nangal Chaudhary logistics hub and port in Haryana

Integrated Multimodel Logistics Hub, Nangal Chaudhary (IMLHNC or IMLH Nangal Chaudhary), 1,100 acre US$3.3. billion project is part of Delhi–Mumbai Industrial Corridor Project (DMIC) on Western Dedicated Freight Corridor (WDFC), that is on track to be completed on time by December 2017 (infrastructure and plot of land ready to be allocated to investors, as of April 2017).[17] Among such investors, Dr. B. Ravi Pillai, owner of RP Group and the richest Indian billionaire in Dubai and Middle East which employ over 70,000 employees, offered to CM of Haryana in December 2017 to invest in logistics company in Integrated Multimodel Logistics Hub, Nangal Chaudhary (North India's largest logistics hub) and in Prime Minister's Housing for All (PMAY) low-cost urban housing in 3 Industrial Model Townships (IMT) along Delhi Western Peripheral Expressway in IMT Bahadurgarh, IMT Kundli, Sonipat and IMT Manesar with construction to be completed within 1 year.[19]

Bhiwadi logistics hub and port in Rajasthan

The Government of Rajasthan has proposed the establishment of a dry port facility at Rabhana, near Bhiwadi in Rajasthan to service trade in and around the state. The objective of the consultancy services was to establish project viability, evaluate the alternate sites, recommend the facilities, details of the infrastructure, and services to be provided, and conduct a detailed study/analysis of its technical, social, economic, and financial viability. The project ensures the coordination of the input of a large project staff and on-time completion. The final report was reviewed, edited, and provided specialist advice on the organization and marketing considerations in the containerized transportation industry.

The facility, to be constructed at a cost of ₹2 billion, is expected to function as an enhanced container freight station (CFS) with facilities like container yards, transit sheds, warehouses, railway sidings, and truck parking. The port will be complemented with modern cargo-handling equipment with special functions like the mechanized filling of containers. The port will concentrate on containerized cargo. The transfer of bulk and break bulk will be expensive at the dry port. The detailed project report for Phase I of the project were completed in September 2001.

Acquisition of land, will be expedited by the Rajasthan State Industrial Development and Investment Corporation (RIICO). Construction work is scheduled to commence in early 2003. The World Bank has agreed to provide funds for the BOT project. The Indian port sector is going through a major transformation with the Government of India planning to spend around ₹2.7 trillion ($60 billion) in the current decade, mainly on development and expansion of ports.

Rail connectivity

Dedicated Freight Corridors

DMIC runs along Western Dedicated Freight Corridor and it intersects with Eastern Dedicated Freight Corridor in north at Dadri in UP. WDFC is 2,700 km long and it also has an additional 5,000 km of feeder lines connecting Mumbai to West Bengal. This dedicated freight corridor will offer high-speed connectivity for high axle load wagons (25 tons) of double stacked containers supported by high power locomotives. The Delhi-Mumbai leg of the Golden Quadrilateral National Highway will run almost parallel to the freight corridor. The central spine across the DMIC corridor is the railway connected via the Western Dedicated Freight Corridor.[29]

New rail connectivity with Sagarmala ports SEZs

To boost export, several billion investment is planned for creating mega SEZs (3 in DMIC influence zone) and for connecting seaports in India to rail network in India.

Rapid Rail Transport System (RRTS)

Some of the RRTS in NCR fall in DMIC zone, as listed below:[30][31][32]

  • NCR RRTS phase-I
    • Delhi-Alwar RRTS
    • Delhi-Meerut RRTS
    • Delhi-Panipat RRTS
  • NCR RRTS phase-II
    • Delhi-Rohtak RRTS
    • Delhi-Palwal RRTS
    • Delhi-Khurja RRTS
    • Ghaziabad-Hapur RRTS
    • Delhi-Baraut RRTS

Bus Rapid Transit (BRT)

Gurugram (BRT)

Much like Delhi, Gurugram too will have a bus rapid transit (BRT) corridor to decongest traffic on the Northern Peripheral Road. In several sections, the NPR will have provisions for the BRT corridor to ensure smooth flow of traffic. The road will be fully developed in March 2012.[33]

Ahmedabad(BRT)

Ahmedabad Bus Rapid Transit System is already operational.

Progress of 3 phases of implementation

Implementation will be done in three phases.

Phase Start Date Completion Date Investment Projects Notes
Phase-I 2025[16] INR 15,500 crore[16] 1. Shendra Bidkin in Maharashtra Rs 8,000 crore (completion by March 2019),
2. Dholera in Gujarat for Rs 4,700 crore (completion by March 2019),
3. Vikram Udyogpuri in Ujjain for Rs 1,300 crore (completion by December 2018),
4. IIT Greater Noida for Rs 1,500 crore (completion by December 2018).[16]		 These already-awarded 4 projects are under construction (updated c. Feb 2018).[16]
Phase-II 2018[16] 2032[16] INR 10,200 crore[16] 2 Multi-modal logistic hubs:
Greater Noida Rs 4,800 crore (initial Rs 1,600 crore),
Haryana Rs 5,400 crore (initial Rs 1,100 crore).[16]		 These 2 projects will be awarded by June 2018 (updated on Feb 2018).[16]
Phase-III 2037[16] Rajasthan on track to acquire 3,500 acre notified in 2012.[16]
Total 2037[16] US$90 billion'

See also

References

  1. ↑ "::: Welcome to Delhi Mumbai Industrial Corridor :::". delhimumbaiindustrialcorridor.com. Retrieved 2017-07-05.
  2. ↑ "THE CONSTITUTION (AMENDMENT)". indiacode.nic.in. Retrieved 2017-07-05.
  3. 1 2 3 "Make in India: Delhi-Mumbai Industrial Corridor to invite first anchor investors in August", The Economic Times, 16 February 2016
  4. ↑ http://www.hindustantimes.com/business/delhi-mumbai-industrial-corridor-gets-japan-s-push/story-aKM8pzw0amRBIHV5XxCkkO.html
  5. ↑ "Press Information Bureau Report". Government of India.
  6. ↑ "Delhi-Mumbai Industrial Corridor: The catalyst for India’s ascendancy" --The Economic Times
  7. ↑ "India proposes USD 9 billion fund for Delhi to Mumbai corridor project". Steel Guru. 17 February 2011. Retrieved 9 October 2011.
  8. ↑ "Funding of DMIC project". DMIDC. 18 July 2016. Retrieved 14 August 2017.
  9. 1 2 DMIC UP
  10. 1 2 Haryana to develop Integrated Multi-Modal Logistic Hub, Tribune News Service, 3 December 2014
  11. 1 2 DMIC Haryana nodes
  12. 1 2 DMIC Regions
  13. 1 2 DMIC corridor Gujarat
  14. 1 2 DMIC Gujarat nodes
  15. 1 2 DMIC Maharashtra Nodes
  16. 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 DMICDC to award Rs 10k-cr logistic hubs in UP & Haryana by June, Financial Express, 20 Feb 2018.
  17. 1 2 DMIC: Bringing opportunities for all construction-related industries, Construction World, April 2017.
  18. ↑ An agreement to invest Rs 86,000 crore in Haryana: Khattar, Samachar Jagat, 11 Dec 2017.
  19. 1 2 3 4 5 Dubai-based company keen on investing in state, The Tribune, 6 Dec 2017.
  20. ↑ Ujjain's 'Knowledge City' renamed 'Vikram Udyog Nagari
  21. ↑ Madhya Pradesh seeks DMIC approval for two infra projects
  22. ↑ "::: Welcome to Delhi Mumbai Industrial Corridor :::". delhimumbaiindustrialcorridor.com. Retrieved 2015-06-29.
  23. ↑ Ganapathy, Nirmala (26 November 2010). "India to get seven new cities by 2018" (PDF) – via The Straits Times.
  24. 1 2 3 "Decks cleared for first mega CEZ; 45 companies may invest Rs 15k-crore in phase-I.", Economic Times, 1 November 2017.
  25. 1 2 3 "Sagarmala: Port-led industrialization.", Government of India.
  26. 1 2 "The A to Z of coastal economic zones.", Deccan Chronicle, 17 February 2016.
  27. 1 2 "Sagarmala Project proposes 14 coastal economic zones across India.", First Post, 29 November 2016.
  28. ↑ "Suresh Prabhu sees economy touching $5 trillion in a few years.", Economic Times, 16 November 2017.
  29. ↑ http://www.ilfsindia.com/downloads/bus_rep/DMIC_brief.pdf
  30. ↑ "NCRTC | Project Details". ncrtc.in. Retrieved 2017-06-11.
  31. ↑ Delhi to Alwar in 104 minutes: Rapid rail proposal moves to approval stage, Hindustan Times, 22 April 2017.
  32. ↑ Standard, Business. "Rapid transport system in NCR takes a step ahead with formation of NCRTC | Business Standard". wap.business-standard.com. Retrieved 2016-06-29.
  33. ↑ "HUDA plans BRT corridor on upcoming NPR project". Times of India. 18 February 2011. Retrieved 9 October 2011.
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