1. THE PRIME REASON BEHIND THE HUGE SURGE IN DEMAND
IN NEEMRANA IS DUE TO SUDDEN AND CONSTANT
EMPLOYMENT GENERATION TO FOLLOW DUE TO MEGA
INDUSTRIAL DEVELOPMENTS WITH OVER $150 BILLION
IN THE REGION.
By: Dipakk Vadehra, Director & Co-Founder, Connexions Abroad
THE “NOW” INVESTMENT
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2. R
ecently, when majority of Delhi-NCR
witnessed corrections and low sales,
Neemrana saw an upward trend, the prices
of existing real estate have been rising and
so have the demand for new residential & commercial
properties. World renowned, credible real estate
advisory agencies have projected, Neemrana will
have the highest rental returns in the country, as
high as 8%-9%p.a. for next 10 yrs. Current rentals
in Neemrana is around Rs. 20,000 for a 2BHK
apartment which was bought approx. at Rs.18Lacs.
Primary reason behind this huge surge in demand
is due to sudden and constant employment
generation to follow due to mega industrial
developments with over $150 billion in the region.
“The gap between demand and supply is huge
right now; supply being negligible at the moment.
Working population has already reached 50,000
in 5-7 under production units in Neemrana.
Population is expected to grow to 2 Lacs in next 3
years hence increasing the pressure for new houses
and commercial spaces. 38 universities in 470
acres will further widen the gap between Demand
& Supply with the increase in student population,
Neemrana in times to come will offer both high
property appreciation and high rental returns”,
quoted Puneet Sahni, Senior Sales Manager, Klazina
Consultants Ltd (KCL), a prominent developer with
huge land parcels in Neemrana.
Strategic Location & Connectivity
Being almost equidistant from Delhi & Jaipur,
Neemrana is located at a distance of 110 kms from
DhaulaKuan,DelhiintheAlwardistrictofRajasthan.
Approximately 8380 sq. kms of Rajasthan falls
under National Capital Region (NCR), which is
about 24.5% of NCR. All major cities are connected
to Rajasthan by air, rail and road.
The Shahjahanpur-Neemrana-Behror (SNB)
Urban Complex in Rajasthan Sub-Region of the
National Capital Region (NCR), is envisaged by
the Government of Rajasthan for establishing a
world-class city with public-private partnership
Global City
A Global City is slated for development in
Shahjahanpur- Neemrana-Behror on 40,000 acres
of land and will house 1 million people. The Global
City would have cluster cities within - the Cyber
City, Medicity, Knowledge City, Entertainment
City, SEZ City, World Trade City, Bio-diversity
Park, a Dry Port City and an airport facility. All
the cluster cities would be self- contained with
residential and commercial spaces. Apart from
the Global City, RIICO is also putting up large
industrial estates extending 2000 acres called
Neemrana Phase III. The Rajasthan Government
has approved 1,100 acres of land to RIICO for a
large industrial estate, which would also have
a residential colony with educational, medical
and recreational centers. An Export Promotion
Industrial Park (EPIP) spread over 210 acres is
another project where some plots have already
been occupied by industries.
International Footprint
An exclusive Korean Industrial Zone is coming up
in the Neemrana, Rajasthan. Another feather in the
cap of Rajasthan’s bustling investment scenario,
this Korea dedicated zone will attract South
Korean entrepreneurs and facilitate technology
transfer between the nations. The 250 acre zone
is being set up at Ghiloth in Neemrana, which is a
very fast developing industrial area of NCR.
A memorandum of understanding (MoU)
was signed between the Rajasthan Industrial
Developement and Investment Corporation
(RIICO) and the South Korean Trade Promotion
Agency (KoTRA) on March 11th 2013 in the
presence of Mr. Joon-Gyu Lee, Ambassador of the
Republic of Korea to India at New Delhi.
Rajasthan has been identified as a Focus
State by International Finance Corporation;
the state’s investment friendly atmosphere,
trained workforce and strategic location in the
Delhi Mumbai Industrial Corridor (DMIC) create
immense opportunities which the South Korea
industry can tap into.
RajasthanalreadyhostsaJapaneseManufacturing
Zone at Neemrana, which was established in 2008
and the Korean zone will be the state’s second such
exclusive bilateral venture of industrial cluster. With
this new Korean Industrial Zone, Rajasthan will
become the only state hosting two country- specific
exclusive manufacturing zones.
Daikin, Dainichi Color India Pvt. Ltd, Imasen
Manufacturing, Mikuni, Mitsui Prime Advanced
Composites, Mytex Polymers, Nissin Brake, NTT
Communications, Takata, Toyoda Gosei, TPR
Autorparts are few names of Japanese giants already
existing in Neemrana.
Besides Japanese biggies, Indian industry giants
like Parle Biscuits, Hero MotoCorp, Terry Plus India,
Liberty Whiteware, Havells, Tops and Rochee
Brewries are successfully running in RIICO zone.
DMIC in Rajasthan
With nearly 39% of Dedicated Freight Corridor
(DFC) passing through Rajasthan, opportunities for
industrial establishment along the route are eminent,
as the corridor will make Rajasthan easily accessible
to western and northern markets. About 60% of
the State’s area falls within the project influence
area. With this, the State will become an attractive
destination for setting up industrial and support
infrastructure units.
Delhi Mumbai Industrial Corridor Project at
a Glance
What is DMIC Project?
The biggest infrastructure project India has ever
attempted in its history.
$90 Billion ambitious, state-sponsored, industrial
project of the Government of India aimed towards
developing new industrial zones across six states of
India to spur economic development in the region.
The industrial clusters will have rail, road and airport
connectivity in the states on the route of the corridor.
Government of India gave its “In-Principal” approval
to the DMIC project outline in 2007. Backbone of this
project will be western Dedicated Freight Corridor
(DFC), which will be a broad gauge, high-speed
freight corridor for high axle load wagons capacity
(25 tonne) of double-stacked container by Indian
Railways, which will connect two most important
cities of India Delhi and Mumbai. Golden Quadrilateral
National Highway will run parallel to Western DFC
Objective of DMIC
The objective is to expand India’s manufacturing
and services base and develop DMIC as a “Global
Manufacturing and Trading Hub”. The program will
provide a major impetus to planned urbanization
in India with manufacturing as the key driver. In
addition to new Industrial Cities, the program
envisages development of infrastructure linkages like
power plants, assured water supply, high capacity
transportation and logistics facilities as well as softer
The SNB Urban Complex in Rajasthan
Sub-Region of the NCR, is envisaged
by the Government of Rajasthan for
establishing a world-class city with
public-private partnership
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3. interventions like skill development program for
employment of the local populace.
Financing of DMIC
IndianMinistry of Commerce and Industry proposed
the establishment of a
$9 billion revolving fund. DMIC received a major
boost with India and Japan inking an agreement to
set up a project development fund with matching
contribution from India and Japan to kick start
the implementation process of the USD 90 billion
Delhi Mumbai Industrial Corridor Project.
Implementation of DMIC
Project will be implemented by the Delhi-Mumbai
Industrial Corridor Development Corporation
(DMICDC) an autonomous body composed of:-
- Government of India represented through
Department of Industrial Policy & Promotion,
Ministry of Commerce & Industry - 49%
- Japan Bank for International Cooperation
(JBIC) – 26%
- Housing and Urban Development
Corporation Limited - 19.9%
- India Infrastructure Finance Company
Limited (IIFCL) – 4.1%
- Life Insurance Corporation of India (LIC) – 1%
States Covered under DMIC
DMIC will cover a total length of 1483 kms spanning
across 6 states.
- Haryana
- Uttar Pradesh
- Rajasthan
- Gujarat
- Maharashtra
- Madhya Pradesh
DMIC Project Influence Area
An alignment of 150-200km has been identified on
either sides of the DFC to be developed as DMIC.
With an Integrated Corridor Development
Approach for DMIC, high impact/ market driven
nodes known as integrated Investment Region
(IRs) identified at strategic locations within the
influencing region will provide transparent and
investment friendly facility regimes.
Self-sustained industrial townships with world-
class infrastructure where the highlights will be
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,
which in turn provides a globally competitive
environment conducive for setting up businesses.
An Investment Region (IR) would be a specifically
delineated industrial region with a minimum area
of over 200 square kilometers (20,000 hectares),
Short-listed Investment Regions of DMIC:
1 Dadri-Noida-Ghaziabad Investment
Region in Uttar Pradesh as General Manufacturing
Investment Region;
2 Manesar-Bawal Investment Region
in Haryana as Auto Component/ Automobile
Investment Region;
3 K h u s h k h e r a - B h i w a d i - N e e m r a n a
Investment Region in Rajasthan as General
Manufacturing/ Automobile/ Auto Component
Investment Region;
4 Pitampur-Dhar-Mhow Investment Region
in Madhya Pradesh as General Manufacturing
Investment Region;
5 Bharuch-Dahej Investment Region in
Gujarat as Petroleum, Chemical and Petro-
Chemical Investment Region (PCPIR);
6 Gatpuri-Nashik-Sinnar Investment
Region in Maharashtra as General Manufacturing
Investment Region;
7 Ahmedabad - Dholera Investment Region
in Gujarat as a mega industrial park;
How will DMIC enhance trade?
DMIC aims to achieve certain end results with
implementation that would ensure realization of
envisaged vision for the project. The corridor’s
development is expected to better the lives of
around 180 million people. It’s a crucial link to
the National Manufacturing Policy that aims to
increase the share of manufacturing in the GDP to
25% and generate 100 million jobs over a decade.
Hence the project goals are: -
- Double employment potential in 7 years
- Triple industrial output in 9 years
- Quadruple exports from the region in 8-9 years
- To create 10 Crore+ jobs along the process
Current Status of DMIC
DMICDC has some of the best project managers in the
world associated with it for detailed engineering.
This includes AECOM, which developed cities like
Songdo in China and the Shatui area in Hong Kong,
and CH2M HILL, which was in charge of the London
Olympics.
According to Talleen Kumar, CEO & MD, DMICDC,
phase-1 of India’s largest infrastructure project will
be completed by 2019.
“DMICDC has decided to go ahead with five cities
in all, the other three being in Greater Noida, Madhya
Pradesh and Haryana. In all these five cities, we
have land available with us. The state government
has been very proactive in making land available to
us and that’s the reason why we are able to move
ahead in these five cities”, he said.
First phase involves construction of Dholera
Special Investment Region in Gujarat and Shendra-
Bidkin Industrial Park in Maharashtra, which are 2 out
of 8 smart industrial cities that have been planned
along the length of the corridor. Environment
clearances for Dholera are in place, and the bidding
process for both Dholera and Shendra has been be
rolled out in December 2014 and now bids are being
awarded for building trunk infrastructure in three
areas which include the 920 sq. km, Rs.70,000-
crore Dholera project in Gujarat.
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