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    • New Delhi 22 Aug, 2007 Department of Industrial Policy & Promotion (DIPP) Ministry of Commerce & Industry Government of India (MoCI) Delhi-Mumbai Industrial Corridor Haryana Dadri J.N.Port Rajasthan Maharashtra Gujarat Madhya Pradesh Haryana Uttar Pradesh
      • 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 IL&FS Infrastructure Development Corporation in March, 2007 to detail the project concept
        • Pursuant to discussions with Central & State Government agencies, IL&FS 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
      Overview
    • Delhi-Mumbai Industrial Corridor (DMIC)
      • 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
      DFC Alignment End Terminal Haryana Dadri J.N.Port Rajasthan Maharashtra Gujarat Madhya Pradesh Haryana Uttar Pradesh
    • Existing Industrial Belts
      • Uttar Pradesh- Noida/ Greater Noida, Ghaziabad
      • (General Manufacturing)
      • Haryana- Gurgaon, Faridabad, Sonepat
      • (Automobile, Electronics, Handloom)
      Dadri Noida Ghaziabad Faridabad
      • Gujarat: Ahmedabad, Vadodara, Anand, Bharuch, Surat (Engineering, Gems & Jewelry, Chemicals)
      Ahmedabad Vadodara Bharuch Surat Anand Bhilwara Jodhpur Kota
      • Rajasthan: Jaipur, Alwar, Kota, Bhilwara, Jodhpur (Marble, Leather, Textile)
      Jaipur Alwar
      • Maharashtra: Mumbai, Pune, Nashik (Auto/Auto Component, Textile, Pharma, Aluminum)
      Nashik Mumbai Pune
      • “ 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)
      Vision for DMIC
      • 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
      Project Objectives
      • 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
      Approach to Development of DMIC
      • 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
      Strategy for Integrated Corridor Development
    • 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
    • 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)
      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 3 2 a f 6 Haryana Uttar Pradesh
    • Nodes for Phase- 2 Development
      • 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);
      DFC Alignment Investment Region (Min.200SQKM) Industrial Area (Min.100SQKM) Haryana Dadri J.N.Port h l k 10 j 7 g i Rajasthan Maharashtra Gujarat Madhya Pradesh 9 m Haryana Uttar Pradesh 11 8
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • 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
    • Opportunities in DMIC
      • EPC/O&M Contracts
      • Project promotion & equity participation in various implementing SPVs
      • Providing long-term debt
      • Industrial Investment (manufacturing & services)
      • Contribution to PDF on commercial basis
    • 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
    • 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
    • Thank You