1. Haryana
Haryana Dadri
Delhi-Mumbai Industrial Uttar
Rajasthan Pradesh
Corridor
Gujarat
Department of Industrial Policy & Madhya
Promotion (DIPP) Pradesh
Ministry of Commerce & Industry
Government of India (MoCI)
Maharashtra
J.N.Port
Osaka
August 2, 2007
2. Overview
DMIC along Dedicated Freight Corridor (DFC) to optimize on
connectivity offered
MOU between MoCI and METI, Japan in December, 2006
Inter-Ministerial Group formed to evolve the Project Outline
Indo Japanese Task Force to guide the process
First Taskforce Meeting held at Tokyo on 25th May, 2007
Second Task Force Meeting held at New Delhi on July 02, 2007
Third Task Force Meeting at Tokyo on July 23, 2007
Observations of Task Force Meetings incorporated in Concept Paper
Project Outline finalization before Aug 22, 2007 visit of Premier Abe
Feasibility Studies of Phase by December 2008
Project launch January 2008
Completion of Phase I by 2012 coinciding with Western DFC.
2
3. Delhi-Mumbai Industrial Corridor (DMIC)
Haryana The 1483-km long DFC Project to be
commissioned in 2012
Dadri
Uttar Focus is on ensuring high impact
Rajasthan
Pradesh developments within 150km distance
on either side of alignment of DFC
Area under Project Influence is 14%
Gujarat
and population is 17% of the Country
Madhya Pradesh
20% more than Japan
Total Population in the Project
Maharashtra Influence Area : 173.4Mn
J.N.Port
Total Workers in the Project Influence
Area: 68.36Mn
End Terminals
DFC Alignment
As per Census-2001 3
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)
5
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
6
7. 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)
7
8. 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
8
9. Nodes for Phase-I Development (2008-12)
Haryana
Haryana a Short listed Investment Regions:
Dadri
2 1 1) Dadri-Noida-Ghaziabad (Uttar Pradesh);
3 b Uttar Manesar-Bawal Region (Haryana);
Rajasthan Pradesh 2)
c
3) Khushkhera-Bhiwadi-Neemrana (Rajasthan);
4) Bharuch-Dahej (Gujarat);
Gujarat f 5) Igatpuri-Nashik-Sinnar (Maharashtra);
Madhya 6) Pitampura-Dhar-Mhow (Madhya Pradesh)
d Pradesh
4 6 Short listed Industrial Areas:
a) Meerut-Muzaffarpur (Uttar Pradesh)
5 Maharashtra
J.N.Port
b) Faridabad-Palwal (Haryana)
e c) Jaipur-Dausa (Rajasthan);
d) Vadodara-Ankleshwar (Gujarat);
e) Industrial Area with Greenfield Port at
DFC Alignment Alewadi/ Dighi (Maharashtra);
Investment Region (Min.200SQKM)
f) Neemuch-Nayagaon (Madhya Pradesh)
Industrial Area (Min.100SQKM)
9
10. Phase- II (2012-18): indicative list of projects
(to be finalized after consultations)
Haryana
Haryana 7 Investment Regions:
g Dadri
7) Kundli-Sonepat (Haryana);
Uttar 8) One Region in Gujarat (Location yet to be
Rajasthan Pradesh
h decided);
j 9) Ratlam-Nagda (Madhya Pradesh)
i
Industrial Areas:
Gujarat k
g) Rewari-Hissar (Haryana)*;
p Madhya
8 9 Pradesh h) Ajmer-Kishangarh (Rajasthan);
i) Rajsamand-Bhilwara (Rajasthan);
l
m j) Pali-Marwar (Rajasthan)*;
Maharashtra
J.N.Port
k) Palanpur-Sidhpur-Mahesana (Gujarat)*;
n l) Surat-Navsari (Gujarat);
m) Valsad-Umbergaon with Maroli Greenfield
Port (Gujarat);
DFC Alignment n) Pune-Khed (Maharashtra)
Investment Region (Min.200SQKM)
p) Shajapur-Dewas (Madhya Pradesh);
Industrial Area (Min.100SQKM)
10
11. 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
11
12. Implementation Structure – 3 Tier
An Apex Authoritywith 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 Project Management Consultant will work under DMICDC for overall
planning, monitoring and financial advisory services
Project specific Special Purpose Vehicles (SPVs) to implement individual
project components viz. Industrial Areas/SEZs, Roads, Power, Ports,
Airports etc
State-level Committee for coordination between DMICDC, Various State
Govt. Entities and Special Purpose Vehicles (SPVs), wherever necessary.
12
13. Implementation Framework
DMIC Steering Authority
(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 Committee
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
13
Project-1 Project-2 Project-3 Project-4
14. 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 GoJ, Fis and GoI.
14
15. Project Development Fund (PDF)
Magnitude of Project and the high number of sub-project necessitates
creation of a Project Development Fund:
USD 250 mn to be raised as Project Development Fund
PDF to be used specifically for all Project Development Activities to
reach technical and financial closure
PDF to be a revolving fund – expenditure on Project Development to be
recovered from Project SPVs
15
16. Commitment of DMIC States
Each State Government will notify a nodal agency to
coordinate with DMICDC, State level agencies, and SPVs
Would set up the investment regions/ industrial areas in
each state;
Assist in acquiring the land for setting up of
infrastructure & investment regions/industrial areas
Facilitate the clearances required from the State
Government
16
17. Project Specific SPVs
Implementation of specific components of industrial nodes
Projects to be awarded to operators with relevant clearances through
a transparent bidding process
Project Operators to raise finances, to implement the projects
Independent Board of Directors for each SPV
Debts to be raised domestically and externally e.g. through JDRs
Debts could also be raised by DMICDC and passed on to SPVs
17
18. Soft Infrastructure for DMIC
Initiatives for Skill Enhancement
Skill Development Centers planned for each investment region/
industrial areas
Streamlined Administrative Procedures
Each Node could have one or more Special Economic Zone, whose
Head is empowered by the Act to grant necessary clearances
Each State Government will constitute an empowered authority for
each of the investment region/ industrial area
These authorities to have delegated powers, from State
Governments and other , to take decisions locally
Flow of Goods
Government of India has already announced road map for
introducing a ‘Goods and Service Tax’ by 2010 which would replace
central and state taxes into a unified tax regime
18
19. Overview
Project Development Phase :
Estimated Requirement : USD 250 mn
Suggested Structure : Venture Capital Fund
Project Developer : DMICDC
Recovery of Investment : From successful bidders
Contributors : GoJ, FIs and GoI
19
20. Timelines
Concept Report finalized
Appointment of Consultant for preparation of
DPR: July 2007
Joint Presentation of final concept from Hon’ble
PM (India and Japan): August 2007
Finalization of DPR by GoJ/GoI and the
financing plan : December 2007
Project Launch: January 2008
20
22. 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 will also require to be implemented 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
22
23. Four-Tier Implementation Structure
An Apex Authority, Headed by the Prime 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 Project 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
23
24. 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
24
25. SMEs in India - Definition
Manufacture
(i) a micro enterprise, where the investment in plant and
machinery does not exceed twenty five lakh rupees (US
$ 55K);
(ii) a small enterprise, where the investment in plant and
machinery is more than twenty five lakh rupees (US$ 55K)
but does not exceed five crore rupees (US$ 1.1M); or
(iii)a medium enterprise, where the investment in plant and
machinery is more than five crore rupees (US$ 1.1M)but
does not exceed ten crore rupees(US$ 2.2M);
25
26. SMEs in India - Definition
Services
(i) a micro enterprise, where the investment in plant and
machinery does not exceed ten lakh rupees (US $ 22K);
(ii) a small enterprise, where the investment in plant and
machinery is more than twenty lakh rupees (US$ 55K) but
does not exceed two crore rupees (US$ 444K); or
(iii)a medium enterprise, where the investment in plant and
machinery is more than two crore rupees (US$ 444K)but
does not exceed five crore rupees(US$ 1.1M);
26
27. SME Sector produces wide range of products :
Simple consumer goods to highly precision and sophisticated end-
products
leather articles, More sophisticated items
plastics and rubber goods, manufactured by SME
fabrics and sector now include
ready-made garments, television sets,
cosmetics, electronic desk calculators,
utensils, sheet metal microwave components,
components, air conditioning equipment,
soaps and detergents, electric motors,
processed food and auto-parts,
vegetables, drugs and pharmaceuticals.
wooden and steel furniture
and so on.
27
28. SME Sector in India
Key growth engine of the Indian economy
Constitutes 95% of all industrial units in the
country
Contributes more than 40% to domestic
industrial output
Generates 45% of industrial employment
Constitutes about 50% of total manufactured
exports (Direct and Indirect)
Produces diverse range of products (more than
8,000 – consumer items, capital goods and
intermediates)
28
29. SME Sector – Significance in Indian context
SMEs are generally less capital-intensive and more labour-intensive.
Are best suited for countries like India, China and most of the developing
world having abundant supply of low-cost manpower and bountiful natural
resources.
Provide large scale employment, ensure equitable distribution of income
and facilitate effective mobilization of resources of capital and skills, which
would otherwise remain unutilized, particularly in rural and backward areas.
India has already established a niche in SME Development Strategy and
providing excellent support in product development, R&D, financial
instruments, Infra-structure, marketing and export development
Consequently, India is fast emerging as a global hub for labour-intensive
knowledge-oriented business.
29
30. SMEs – The Most Vibrant & Potential Growth Segment
A recent World Bank Report states: “There is now
widespread recognition within India that vibrant
SMEs are potentially a key engine of economic
growth, job creation and greater economic
prosperity”.
10th Plan Document of Govt. of India states:
“Growth as planned will come from a sharp step-up
in industrial and services growth, spurred by SMEs”.
30
31. SME Profile
SSI units : 12.3 million
Employment generated in SSIs : 29.5 million
Production : US $ 100 billion
Exports : US $ 27 billion
SSIs account
Industrial Production : 40%
Exports : 35% (50% of Direct & Indirect)
GDP Share : 7%
31
32. SME Profile
Ownership pattern :
Proprietorships : 78%
Partnerships : 16%
Corporate & Others : 6%
Industrial Units : 96%
Service Enterprises : 3%
Ancillary Units : 1%
32
33. Challenges of SMEs
Access to finance for SME Projects
Lack of adequate working capital
Quality industrial infrastructure (inclusive of Power)
Marketing of products
Technology up gradation and improvement in
quality of products
Delayed payments to SMEs
Sickness and NPA management
33
34. India: Quick facts
• India continues to be the best place to start a business, says a global services
location index by AT Kearney.
• India's foreign exchange reserves stand at US$ 180 billion.
• India has displaced US as the second-most favoured destination for foreign
direct investment (FDI) in the world after China according to an AT Kearney's
FDI Confidence Index
• Poised at a phenomenal growth of 500 per cent, the Indian insurance industry
is expected to reach US$ 60 billion in the next four years.
• Total premium of the general insurance industry grew 16.48 per cent in 2005-
06 to US$ 4.4 billion from US$ 3.78 billion a year earlier.
• India adds about five million telephone subscribers every month. The total
number of subscribers is expected to reach 250 million by the end of 2007.
• The Indian IT-ITeS industry has recorded revenues of US$ 23.6 billion in FY
2005-06.
34
35. India: Quick facts
• India has one of the largest road networks in the world, aggregating 3.34
million kilometers. It comprises 66,590 km of National Highways,
1,28,000 km of State Highways, 4,70,000 km of Major District Roads and
about 26,50,000 km of other District and Rural Roads.
• Indian roads carry about 70 per cent of the freight and 85 per cent of the
passenger traffic.
• India is the Sixth largest crude consumer in the world.
• Estimated to be a US$ 350 billion industry, the Indian retail sector is
growing at a three-year CAGR of 46.64 per cent.
• The travel and tourism sector in India is expected to generate a total
demand of US$ 53,544.5 million of economic activity in 2006, accounting
for nearly 5.3 per cent of GDP and 5.4 per cent of total employment.
• International Iron and Steel Institute (IISI) has ranked India as the
seventh largest steel producer in the world with an overall production of
about 40 million tonnes in 2006.
35
36. India: Quick facts
• India exports US$ 6 billion worth of garments.
• India's gems and Jewellery sector contributed to about 15 per cent of India's
total merchandise exports during 2005-06.
• India is the largest consumer of gold jewellery in the world and accounts for
about 20 per cent of world consumption.
• India is the largest diamond cutting and polishing centre in the world.
• India is the second largest producer of rice and wheat in the world; one of the
largest producers of sugar, sugarcane, peanuts, jute, tea and an assortment of
spices.
• The Indian pharmaceutical industry, consistently growing at 9.5 per cent in the
last 5 years, could zip at 13.6 per cent between 2006 and 2010 and reach a
market size of US$ 9.48 billion by 2010 from its present level of about US$ 5.7
billion.
• Healthcare delivery is one of the largest service-sector industries in India. The
country will spend US$ 45.76 billion on healthcare in the next five years.
36
37. Sectoral FDI Policies
Sectors FDI Policy
Transportation Civil Aviations Services: upto 49% under
automatic route
Road: upto 100% under Automatic route
Shipping / Inland Water Transport: upto 74% under
automatic route
Retail Note permitted except Single Branded product
retailing ( upto 51% under FIPB route)
Insurance upto 26% under automatic route
Finance, Banks:upto 74% under automatic route
Economic NBFC: upto 100% under automatic route with
organization
capitalization norms
37
38. Sectoral FDI Policies
Sectors FDI Policy
Public sector Reserved: Railways Transport, Arms, Atomic Energy,
Defense Aircrafts & Warships, Atomic menial & some
such mineral – No FDI, Tech transfers and vendors
possible
Service Upto 100% under Automatic route for most services.
Some services have entry conditions. Refer FDI
Manual in CD
IT Upto 100% under Automatic route
Manufacturing Upto 100% under Automatic route
Electricity, gas, Upto 100% under Automatic route except Atomic
Energy
water, other utilities
38
39. Sectoral FDI Policies
Sectors FDI Policy
Real estate, FDI up to 100% under automatic route in
Construction townships, housing, built-up infrastructure and
construction-development projects (which would
include, but not be restricted to, housing, commercial
premises, hotels, resorts, hospitals, educational
institutions, recreational facilities, city and regional
level infrastructure)
entry conditions of minimum capitalization and area
-Reference Press Note 2, 2005 at dipp.gov.in
No speculative activities
39
40. Opportunities
Fashion Technology
Information Technology
Design Technology
Health Technology
Bio Technology
Infrastructure sectors
40
41. Fashion Technology - Opportunities
Glamour & Limelight
Creative
High Value Addition
Coverage (Extensive)
Clothes
Dresses
Garments
Textile
41
43. Information Technology : Opportunities
Media
Entertainment
Contents,
Animation,
Games,
Gaming
43
44. Design Technology : Opportunities
Interiors - (Furniture & Furnishing – homes, work places, community, hospitals,
schools, shopping places, recreation, sports)
Exteriors - (Architectural)
Industrial products
Textiles
Electrical appliances
White goods
Leather products
Engineering products
Machinery
Dies and tools
Watches
Jewellery
Hospital equipments
Medical instruments
Electronics and Communication Products and Equipments
44
45. Health Technology : Opportunities
Personal Health Care
Preventive Health Care
Physiotherapy
Monitoring (sensors)
Community Health
Vaccines
Public Health
Surveillance of Health Status (AIDS, Bird Flu etc)
Medical Imaging Technology such as X-ray, Cat scanning,
Computed Tomography Scan (CTs), Magnetic Resource
Images (MRIs), Sonograms etc.
Surgical & Physiotherapy
45
46. Health Technology : Opportunities (contd.)
Personal Health Care
Preventive Health Care
Physiotherapy
Monitoring (sensors)
Community Health
Vaccines
Public Health
Surveillance of Health Status (AIDS, Bird Flu etc)
Medical Imaging Technology such as X-ray, Cat scanning,
Computed Tomography Scan (CTs), Magnetic Resource
Images (MRIs), Sonograms etc.
Surgical & Physiotherapy
46
47. Health Technology : Opportunities (contd.)
Health Information Management
Medical Laboratory Technology
Beauty Care and Wellness
Nursing
Pharmacy Technology
Medical Research Laboratory
Yoga & Naturopathy
Herbal Therapies
Environmental Health
Food Supplements
Food, Inspection and Testing etc.
Medical Waste Management
Hospital Supplies & Staffing Services
47
48. Bio Technology : Opportunities Opportunities
knowledge sector
US $ 365 billion
in 2020.
The biotech industry continues to grow at almost the same rate that it
did in last year. The industry recorded 36.55 percent growth compared
to the previous year’s revised figure of US $ 788 million. In 2003-04,
there were just four companies with revenues in excess of US $ 22
million.
An Ernst and Young study has named India as one of the five
emerging biotech leaders in the Asia Pacific besides Singapore,
Taiwan, Japan and Korea, with mainland China catching up quickly.
The study ranked India third in the region based on the number of
biotech companies (96) in the country, after Australia (228) and China,
including Hong Kong (136).
The above-expected growth will facilitate SMEs to enter into this field
by setting up contract Research Organisations (CROs) and in other
areas to meet the demand of US $ 3.1 billion market of Indian
Pharmaceutical Industry.
With the industry zooming part the US $ 1 billion mark, registering
revenues of US $ 1.07 billion, the sector has achieved a significant
milestone.
48
49. Power
(Estimated investment: USD 60 billion)
Over 67000 MW capacity to be added in the 11th
plan period (2007-08 to 2011-2012)
9 UMPPs to be implemented during the 11th and
12th plans
Transmission capacity augmentation through JVs
for new generation
49
50. Roads
(Estimated investment: USD 49 billion)
NHDP-II: 4569 km, NHDP-VII: $38000 mn.
$103800 mn. State Roads programme are in
NHDP-III: 10000 km addtion
$155200 mn.
NHDP-IV: 20000 km
$66100 mn.
NHDP-V: 6500 km
$98100 mn.
NHDP-VI: 1000 km
$39700 mn.
50
51. Railways
(Estimated investment USD 67 billion)
Dedicated Freight Corridors with PPP sub-projects
envisaging more than USD 7 billion investment for the North
South, East West Corridors alone
Container operations
Rail side warehousing
Logistics Parks
Development of Rail links to Ports
Dedicated rail links for evacuation of specific industrial items
Modernization of Railway Stations
Development of new routes
51
52. Airports
(estimated investment USD 9 billion)
Metro Airport development
through PPP
Greenfield Airports
Concept of Merchant
Airports being examined by
Government
City side development in
24 Non-metro Airports
Provision of Services
within airports
52
53. Ports:
(Estimated investment USD 11 billion)
National Maritime Development All new berths on PPP basis
Programme Gradual transition of old berths
387 port projects to PPP
Compound Annual Rate of Growth
during different Time span
12
10 10.78
ercentage
9.5 9.97
8
6 6.74
5.51
4
P
2
0
1951-2004 1992-2004 2001-2004 2003-2004 2004-2005
54 Years Post Liberalized Last 3 Years Prev ious Year Projected Grow th
Era
Pe riod
53
54. Telecom
Untapped rural potential
with low rural tele-density
of 1.9% which must
increase to 10% by 2012
Almost a million broadband
connections added in
2006-2007. With low
penetration scope for
further increase
Current tele-density 15%
54
55. Urban Infrastructure
Mass Rapid Transit Systems at Mumbai at a capital cost of
about USD 2.5 billion, Hyderabad and Kolkata at about USD 1
billion each, Ahmedabad at about USD 950 million and other
cities
55
