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  1. 1. 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
  2. 2. <ul><li>Government of India initiated the development of DMIC along the Dedicated Freight Corridor (DFC) to optimize on the connectivity offered </li></ul><ul><li>MOU relating to the project was signed between MoCI and METI, Japan in December, 2006 to create the framework for mutual cooperation </li></ul><ul><li>At the instance of the MoCI, an Inter-Ministerial Group was formed to evolve the Project Outline : </li></ul><ul><ul><li>MoCI appointed IL&FS Infrastructure Development Corporation in March, 2007 to detail the project concept </li></ul></ul><ul><ul><li>Pursuant to discussions with Central & State Government agencies, IL&FS have since submitted their Report </li></ul></ul><ul><li>First Taskforce Meeting held at Tokyo on 25th May, 2007 </li></ul><ul><li>Second Task Force Meeting held at New Delhi on July 02, 2007 </li></ul><ul><li>Third and Final Task Force Meeting held at Tokyo on July 23, 2007 to finalize the Concept Paper </li></ul>Overview
  3. 3. Delhi-Mumbai Industrial Corridor (DMIC) <ul><li>The 1483-km long DFC Project to be commissioned in 2012 </li></ul><ul><li>Focus is on ensuring high impact developments within 150km distance on either side of alignment of DFC </li></ul><ul><li>Area under Project Influence is 14% and population is 17% of the Country </li></ul><ul><li>Total Population in the Project Influence Area : 178Mn </li></ul><ul><li>Total Workers in the Project Influence Area: 70.56Mn </li></ul><ul><li>As per Census-2001 </li></ul>DFC Alignment End Terminal Haryana Dadri J.N.Port Rajasthan Maharashtra Gujarat Madhya Pradesh Haryana Uttar Pradesh
  4. 4. Existing Industrial Belts <ul><li>Uttar Pradesh- Noida/ Greater Noida, Ghaziabad </li></ul><ul><li>(General Manufacturing) </li></ul><ul><li>Haryana- Gurgaon, Faridabad, Sonepat </li></ul><ul><li>(Automobile, Electronics, Handloom) </li></ul>Dadri Noida Ghaziabad Faridabad <ul><li>Gujarat: Ahmedabad, Vadodara, Anand, Bharuch, Surat (Engineering, Gems & Jewelry, Chemicals) </li></ul>Ahmedabad Vadodara Bharuch Surat Anand Bhilwara Jodhpur Kota <ul><li>Rajasthan: Jaipur, Alwar, Kota, Bhilwara, Jodhpur (Marble, Leather, Textile) </li></ul>Jaipur Alwar <ul><li>Maharashtra: Mumbai, Pune, Nashik (Auto/Auto Component, Textile, Pharma, Aluminum) </li></ul>Nashik Mumbai Pune
  5. 5. <ul><li>“ 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” </li></ul><ul><li>Delhi-Mumbai Industrial Corridor is conceived to be developed as “Global Manufacturing and Trading Hub” supported by world class infrastructure and enabling policy framework </li></ul><ul><li>Project Goals </li></ul><ul><li>Double employment potential in five years (14.87% CAGR) </li></ul><ul><li>Triple industrial output in five years (24.57% CAGR) </li></ul><ul><li>Quadruple exports from the region in five years (31.95% CAGR) </li></ul>Vision for DMIC
  6. 6. <ul><li>Industrial Infrastructure </li></ul><ul><ul><li>Developing new industrial clusters </li></ul></ul><ul><ul><li>Upgradation of existing industrial estates/clusters in the corridor </li></ul></ul><ul><ul><li>Developing Modern Integrated Agro-Processing Zones with allied infrastructure </li></ul></ul><ul><ul><li>Development of IT/ITeS Hubs and other allied infrastructure </li></ul></ul><ul><ul><li>Providing efficient logistics chain with multi-modal logistic hubs </li></ul></ul><ul><li>Physical Infrastructure </li></ul><ul><ul><li>Development of ‘Knowledge Hubs’ with integrated approach </li></ul></ul><ul><ul><li>Feeder Road/Rail connectivity to ports, hinterlands and markets; </li></ul></ul><ul><ul><li>Development of existing Port infrastructure and Greenfield Ports; </li></ul></ul><ul><ul><li>Upgradation/ Modernization of Airports; </li></ul></ul><ul><ul><li>Setting up Power Generation Plants with transmission facilities; </li></ul></ul><ul><ul><li>Ensuring effective environment protection mechanism </li></ul></ul><ul><ul><li>Development of integrated townships </li></ul></ul>Project Objectives
  7. 7. <ul><li>Infrastructure development- key to DMIC instead of additional fiscal or financial incentives </li></ul><ul><li>Units coming up would have the advantage of improved infrastructure </li></ul><ul><li>A Regional development approach instead of isolated pockets </li></ul><ul><li>Brownfield areas rather than greenfield in Phase-1 to ensure better cost effectiveness </li></ul><ul><li>Make development more harmonious by emphasizing local skill and agri development </li></ul>Approach to Development of DMIC
  8. 8. <ul><li>The development strategy for the DMIC is based on the competitiveness of each of the DMIC states : </li></ul><ul><ul><li>Holistic approach adopted to identify High Impact/Market Driven Nodes along the DMIC </li></ul></ul><ul><ul><li>Each Node will be self-sustained regions with world class infrastructure and enhanced connectivity to DFC, Ports, and Hinterlands </li></ul></ul><ul><li>Market Driven Nodes are proposed to be in two categories </li></ul><ul><ul><li>Investment Regions - Approx. 200 sq km Area (Minimum) </li></ul></ul><ul><ul><li>Industrial Areas - Approx. 100Sqkm Area (Minimum) </li></ul></ul><ul><li>A total of 24 Nodes have been identified in consultation with State Governments : </li></ul><ul><ul><li>11 Investment Regions </li></ul></ul><ul><ul><li>13 Industrial Areas </li></ul></ul>Strategy for Integrated Corridor Development
  9. 9. Strategy for Integrated Corridor Development <ul><li>Criteria for Selection of Investment Region </li></ul><ul><ul><li>Each DMIC State to have at least one node to spread economic benefit </li></ul></ul><ul><ul><li>Proximity to major urban agglomerations </li></ul></ul><ul><ul><li>Potential for Developing Greenfield Ports (or) Augmentation </li></ul></ul><ul><ul><li>Availability of land parcels and established industrial base </li></ul></ul><ul><li>Criteria for Selection of Industrial Area: </li></ul><ul><ul><li>To take advantage of inherent strengths of specific locations </li></ul></ul><ul><ul><ul><li>Mineral Resources </li></ul></ul></ul><ul><ul><ul><li>Agriculture </li></ul></ul></ul><ul><ul><ul><li>Industrial development, and, </li></ul></ul></ul><ul><ul><ul><li>Skilled Human Resource base </li></ul></ul></ul><ul><li>To spread the benefits of the corridor the project will also seek to link Under-Developed Regions along the Corridor to Well Developed Regions </li></ul>
  10. 10. Nodes for Phase-1 Development <ul><li>Short listed Investment Regions : </li></ul><ul><li>Dadri-Noida-Ghaziabad (Uttar Pradesh); </li></ul><ul><li>Manesar-Bawal Region (Haryana); </li></ul><ul><li>Khushkhera-Bhiwadi-Neemrana (Rajasthan); </li></ul><ul><li>Bharuch-Dahej (Gujarat); </li></ul><ul><li>Igatpuri-Nashik-Sinnar (Maharashtra); </li></ul><ul><li>Pitampura-Dhar-Mhow(Madhya Pradesh) </li></ul><ul><li>Short listed Industrial Areas: </li></ul><ul><li>Meerut-Muzaffarpur (Uttar Pradesh) </li></ul><ul><li>Faridabad-Palwal (Haryana) </li></ul><ul><li>Jaipur-Dausa (Rajasthan); </li></ul><ul><li>Vadodara-Ankleshwar (Gujarat); </li></ul><ul><li>Dighi Port (Maharashtra); </li></ul><ul><li>Neemuch-Nayagaon (Madhya Pradesh) </li></ul>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
  11. 11. Nodes for Phase- 2 Development <ul><li>Investment Regions: </li></ul><ul><li>Kundli-Sonepat (Haryana); </li></ul><ul><li>Ajmer-Kishangarh (Rajasthan); </li></ul><ul><li>Ratlam-Nagda (Madhya Pradesh); </li></ul><ul><li>Ahmedabad-Dholera (Gujarat); </li></ul><ul><li>Dhule-Nardhanda (Maharashtra) </li></ul><ul><li>Industrial Areas: </li></ul><ul><li>Rewari-Hissar (Haryana); </li></ul><ul><li>Rajsamand-Bhilwara (Rajasthan); </li></ul><ul><li>Pali-Marwar (Rajasthan); </li></ul><ul><li>Surat-Navsari (Gujarat); </li></ul><ul><li>Valsad-Umbergaon with Maroli Greenfield Port (Gujarat); </li></ul><ul><li>Pune-Khed (Maharashtra); </li></ul><ul><li>Shajapur-Dewas (Madhya Pradesh); </li></ul>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
  12. 12. Components of Each Industrial Node <ul><li>Industrial Infrastructure </li></ul><ul><ul><li>New Industrial Clusters/ Parks/ SEZs </li></ul></ul><ul><ul><li>Upgradation of existing industrial estates/clusters </li></ul></ul><ul><ul><li>Modern Integrated Agro-Processing Zones with allied infrastructure </li></ul></ul><ul><ul><li>IT/ITES Hubs and other allied infrastructure </li></ul></ul><ul><ul><li>Efficient logistics chain with integrated multi-modal logistic hubs </li></ul></ul><ul><li>Physical Infrastructure </li></ul><ul><ul><li>Knowledge Cities / Skill Development Centers with integrated approach </li></ul></ul><ul><ul><li>Augmentation of Existing Port infrastructure & Greenfield Port Development; </li></ul></ul><ul><ul><li>Upgradation/ Modernization of Airports; </li></ul></ul><ul><ul><li>Power Generation Plants with transmission facilities; </li></ul></ul><ul><ul><li>Feeder Road/Rail connectivity to ports, hinterlands and markets; </li></ul></ul><ul><ul><li>Dovetailed integrated townships catering to investor countries </li></ul></ul><ul><ul><li>Effective Environment Protection Mechanism </li></ul></ul>
  13. 13. Soft Infrastructure for DMIC <ul><li>Initiatives for Skill Enhancement </li></ul><ul><ul><li>Skill Development Centers/ Centers of Excellence planned through out the investment regions/ industrial areas </li></ul></ul><ul><li>Streamlined Administrative Procedures </li></ul><ul><ul><li>Each Node will contain one or more Special Economic Zones, which are empowered by the Act to provide necessary clearances themselves </li></ul></ul><ul><ul><li>Each State Government will constitute an empowered authority for each of the investment region/ industrial area </li></ul></ul><ul><ul><li>These authorities to have delegated powers, from State Government, to take decisions locally </li></ul></ul><ul><li>Policy Regime for DMIC </li></ul><ul><ul><li>Movement of Goods through roads is proposed to be facilitated without interruption by use of IT </li></ul></ul><ul><ul><li>A Dialogue to be started with State Transport Ministers for a Unified Policy Regime for uninterrupted and low cost movement of material and efficient </li></ul></ul><ul><ul><li>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 </li></ul></ul>
  14. 14. Key Issues in Project Implementation <ul><li>The complexity of implementing the DMIC will require rigorous detailing of all aspects of the project prior to implementation : </li></ul><ul><ul><li>Engineering </li></ul></ul><ul><ul><li>Environmental </li></ul></ul><ul><ul><li>Social </li></ul></ul><ul><ul><li>Financial </li></ul></ul><ul><ul><li>Contractual, etc </li></ul></ul><ul><li>The size of the project also emphasizes the need for implementation of project in phases. This will be critical in ensuring its sustainability </li></ul><ul><li>Given the involvement of multiple Ministries and multiple state governments an effective framework for co-ordination is critical </li></ul><ul><li>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 </li></ul>
  15. 15. Four-Tier Implementation Structure <ul><li>An Apex Authority, Headed by the Finance Minister with concerned Central Ministers and Chief Ministers of respective DMIC States as Members; </li></ul><ul><li>A Corporate Entity, referred as DMIC Development Corporation (DMICDC), to coordinate Project Development, Finance and Implementation; </li></ul><ul><ul><li>A Program Management Consultant (Joint Consultant) will work under DMICDC for overall planning, monitoring and financial advisory services </li></ul></ul><ul><li>State-level Coordination Entity for coordination between DMICDC, various State Govt. Entities and Special Purpose Vehicles (SPVs); </li></ul><ul><li>Project specific Special Purpose Vehicles (SPVs) to implement individual project components viz. Industrial Areas/SEZs, Roads, Power, Ports, Airports etc </li></ul>
  16. 16. 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
  17. 17. Financial Structure of the DMICDC <ul><li>49 % equity contributed by GOI </li></ul><ul><li>51 % equity contributed by Financial Institution(s) and other Infrastructure organizations </li></ul><ul><li>Loans facilitated by DMICDC – as a pass-through arrangements for specific projects </li></ul><ul><li>Project Development Funds contributed by GOI, GOJ and FIs </li></ul>
  18. 18. Project Development Fund (PDF) <ul><li>Magnitude and importance of Project necessitates creation of Project Development Fund: </li></ul><ul><ul><li>Cost of Project development would be substantial </li></ul></ul><ul><ul><li>Funding would need to be accessed from variety of sources-Central and State Govt., Indian and Foreign investors, bilateral and multilateral Institutions </li></ul></ul><ul><ul><li>Investments to be recovered from PPP projects </li></ul></ul><ul><li>USD 250 mn to be raised as Project Development Fund from Govt of India, Japan and FIs </li></ul><ul><li>The PDF to be used specifically for all Project Development Activities to reach technical and financial closure </li></ul><ul><li>PDF ensures availability of finance to get projects off the ground </li></ul>
  19. 19. Commitment of DMIC States <ul><li>Each State Government will notify a nodal agency to coordinate with DMICDC, State level agencies, and SPVs </li></ul><ul><li>Coordinates implementation of investment regions/ industrial areas in each state; </li></ul><ul><li>Assists in acquiring the land necessary for setting up infrastructure, processing and non-processing areas; </li></ul><ul><li>Facilitates all clearances required from the State Government </li></ul><ul><li>Arrange requisite funding for development of infrastructure, through budgetary resources or by availing existing schemes of GoI </li></ul><ul><li>Ensures world class physical infrastructure and utilities, linkages under its jurisdiction within a stipulated time frame after notifying the location </li></ul>
  20. 20. Project Specific SPVs <ul><li>Implementation of specific components of industrial nodes </li></ul><ul><li>Projects to be awarded to operators with all relevant clearances and through a transparent bidding process </li></ul><ul><li>Project Operators to raise finances, implement and operate the project </li></ul><ul><li>Independent Board of Directors for each SPV </li></ul><ul><li>Debts to be raised domestically and externally </li></ul><ul><li>Debts could also be raised by DMICDC and passed on to SPVs </li></ul>
  21. 21. Funding Perspectives for DMIC <ul><li>Project Development Phase : </li></ul><ul><ul><li>Estimated Requirement : USD 250 mn </li></ul></ul><ul><ul><li>Suggested Structure : Venture Capital Fund </li></ul></ul><ul><ul><li>Project Developer : DMICDC </li></ul></ul><ul><ul><li>Recovery of Investment : From successful bidders </li></ul></ul><ul><ul><li>Contributors : Need for ODA/grants </li></ul></ul><ul><li>Project Implementation Phase : </li></ul><ul><ul><li>Estimated Requirements : USD 90 bn </li></ul></ul><ul><ul><li>Suggested Structure : SPV </li></ul></ul><ul><ul><li>Critical Requirement : Long term equity </li></ul></ul><ul><ul><li>Long term debt/sub-debt </li></ul></ul><ul><ul><li>Viability Gap Funding </li></ul></ul><ul><ul><li>Debt Service Reserve </li></ul></ul>
  22. 22. Opportunities in DMIC <ul><li>EPC/O&M Contracts </li></ul><ul><li>Project promotion & equity participation in various implementing SPVs </li></ul><ul><li>Providing long-term debt </li></ul><ul><li>Industrial Investment (manufacturing & services) </li></ul><ul><li>Contribution to PDF on commercial basis </li></ul>
  23. 23. Summary- Infrastructure Development Initiatives in DMIC <ul><li>Development of 10,000MW Power Generation Capacity </li></ul><ul><li>Development of Three Greenfield Ports </li></ul><ul><ul><li>Dholera & Maroli in Gujarat, Dighi Port in Maharashtra; </li></ul></ul><ul><ul><li>Augmentation of Two Ports (Dahej and Hazira) in Gujarat </li></ul></ul><ul><li>Augmentation of Six/Seven Airports </li></ul><ul><ul><li>Greater Noida (Uttar Pradesh); Udaipur/ Jodhpur (Rajasthan); </li></ul></ul><ul><ul><li>Indore (Madhya Pradesh); Vadodara and Surat (Gujarat); Nashik & Pune (Maharashtra); Air Strips at Dholera & Neemrana </li></ul></ul><ul><li>Construction/ Augmentation of 2500km long feeder rail linkages </li></ul>
  24. 24. Summary- Infrastructure Development Initiatives in DMIC <ul><li>Augmentation/ Construction of 4000km feeder roads (State Highways etc) besides up gradation of National Highways </li></ul><ul><li>Construction, Operation and Maintenance of Logistics Hubs, Container Terminals </li></ul><ul><li>Development of Industrial Areas, SEZs/ Agro-Processing Hubs </li></ul><ul><li>Integrated Townships, IT/ITES Hubs, Biotechnology Parks </li></ul><ul><li>Knowledge Cities/ Centers of Excellence/ Skill Development Centers </li></ul>
  25. 25. Thank You