DMIC

Industrial Corridor – a Japanese investment
(DMIC)
Presented by
Dheeraj Rathi
Takeshi Kanda
December 6th 2014 Regional Conference ICAI(WIRC)

Japan doubles its investment in
India to $35 billion
The red carpet, not red tape awaits you. As software is
incomplete without hardware, India needs Japan. Mr Modi
Cooperation is well
understood in Indian hierarchy
Historic Visit of Emperor Akihito
to boost India-Japan ties
Deep cultural links boost
strategic ties
Japanese PM on Republic Day
President with Japanese PM
at Cabinet PR Office

1 Billion People talking about Japan in a week…..
Disclaimer: Presentation not to solicit investment

Symbolically a very significant alignment in Asia…..
Disclaimer: Presentation not to solicit investment

Contents
1
• Intuitive India
2
• Why India and Japan
3
• DMIC Structure and History
4
• Why DMIC Envisioned
5
• How it will be Executed
6
• What it will Look Like
7
• Challenges for the Project
8
• Japan Perspective
9
• Opportunities way ahead
ICAI WIRC Conference: Not for Advisory or Solicit Investments

Intellect is what worlds uses, As Indians we are Intuitive

Intuition has to be a Natural Choice

In India its Default and not Design…….
"I do not want to get material life, do not want
the sense-life, but something higher." That is
renunciation. Then, by the power of meditation,
undo the mischief that has been done
- Swami Vivekananda

We make things happen, despite speed breakers……
One needs to be slow to form convictions, but once formed
they must be defended against the heaviest odds.
– Mahatma Gandhi

Innovation is called here Jugaad…….
”It is the mark of an educated mind to be able to
entertain a thought without accepting it.” - Aristotle

India not Emerging but reemerging Economy
Entrepreneurial Spirit had been and will be bed rock to Indian Growth
China Opens
India opens

Promise to Potential still room for growth
Growthinlastcentury
1
3.5
5.64
7.04
5.94
7.97
0
1
2
3
4
5
6
7
8
9
%
India Growth Rate
Source: RBI

About DMIC
Mega infra-structure project of
USD 90 billion covering an overall
length of 1483 KMs between Delhi
and Mumbai
Incorporates Nine Mega Industrial
zones of about 200-250 sq. km.,
high speed freight line, three
ports, and six airports; a six-lane
intersection-free expressway
connecting Mumbai & Delhi and a
4000 MW power plant
A band of 150 km (Influence
region) has been chosen on both
sides of the Freight corridor to be
developed as the Delhi-Mumbai
Industrial Corridor
Divided into IR and IA across the
corridor.

A Basic Concept
Area of Influence
DMIC influence area comprises of population of 178 Million (17% of total population of the country).
DMIC states contribute 50% of agricultural produce of principal crops ,60% of overall exports from the country, 52% of
overall FDI equity investments into the country (Jan 2000-Dec 2006).
Investment Regions: ~ 200 Sq KM
Dadri-Noida- Ghaziabad Region in Uttar Pradesh as General Manufacturing Investment Region;
Manesar-Bawal Region in Haryana as Auto Component/ Automobile Investment Region;
Khushkhera-Bhiwadi-Neemrana Region in Rajasthan as General Manufacturing/ Automobile/ Auto Component Investment
Region;
Bharuch-Dahej Region in Gujarat as Petroleum, Chemical and Petro-Chemical Investment Region (PCPIR);
Igatpuri-Nashik-Sinnar Region in Maharashtra as General Manufacturing Investment Region;
Pitampura-Dhar-Mhow in Madhya Pradesh as General Manufacturing Investment Region.
Industrial Areas: ~ 100 Sq KM
Meerut-Muzaffarnagar Zone in Uttar Pradesh as Engineering & Manufacturing Industrial Area;
Faridabad-Palwal Zone in Haryana as Engineering & Manufacturing Industrial Area;
Jaipur-Dausa Zone in Rajasthan as Marble/Leather/Textile Industrial Area;
Vadodara-Ankleshwar Zone in Gujarat as General Manufacturing Industrial Area;
Industrial Area with Greenfield Port at Dighi in Maharashtra
Neemuch-Nayagaon in Madhya Pradesh as Engineering and Agro- Processing Industrial Area.

Project Categories and Goals Envisaged
Category-1: Projects through Public Private Partnership (PPP Viable Projects)
Logistics Infrastructure;
Power Plants, Ports and Airports;
Special Economic Zones, Industrial Parks, IT/ITES/Biotech Hubs and
Agro-Processing Hubs;
Knowledge Cities, Integrated Townships; and
Augmentation of selected National and State Highways.
Category-2: Other Projects (Non- PPP Projects)
Augmentation of rail linkages and development of connectivity to the identified IR/ IA;
Provision of requisite urban infrastructure;
Augmentation of industrial areas;
Provision of missing links and augmentation of state highways.
The project goals for DMIC are:
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)

7 Nodes being developed in DMIC Phase 1
1. Dadri – Noida Ghaziabad IR, UP
2. Manesar – Bawal IR, Haryana
3. Neemrana – Khushkhera – Bhiwadi IR,
Rajasthan
4. Pithampur- Dhar - Mhow IR, MP
5. Ahmedabad – Dholera IR, Gujarat
6. Nashik– Sinnar – Igatpuri IR,
Maharashtra
7. Dighi Port IA, Maharashtra

DMIC Ownership and Structure
Apex Authority
Haryana Gujarat
Madhya
Pradesh
Uttar Pradesh Rajasthan Maharashtra
DMICDC
Union Finance Minister as Chairman, other Cabinet
Ministers and Six Chief Ministers of DMIC States as
Members
Special Purpose Vehicle
Haryana State Industrial
& Infrastructure
Development
Corporation
Gujarat
Infrastructure
Development
Board
Trade and
Investment
Facilitation
Corporation Limited
Greater Noida
Industrial
Development
Authority
Bureau of
Investment
Promotion
Maharashtra
Industrial
Development
Corporation
Sl.
No.
Particulars Percentage
Shareholding
1. Government of India represented through Department
of Industrial Policy & Promotion, Ministry of
Commerce & Industry.
49.0%
2. Japan Bank for International Cooperation (JBIC) 26.0%
3. Housing and Urban Development Corporation Limited
(HUDCO)
19.9%
4. India Infrastructure Finance Company Limited (IIFCL) 4.1%
5. Life Insurance Corporation of India (LIC) 1.0%

WHY DMIC WAS ENVISAGED

Urbanization in form of cities have majorly driven the GDP
growth rates within majority of the progressive states in India
Delhi
Rajasthan
Kerala
KarnatakaWest Bengal Gujarat
Andhra Pradesh
Tamil Nadu
Uttar Pradesh
Maharashtra
50
Y Axis
100
90
80
70
60
40
30
20
10
0 X
12.011.511.010.510.09.59.08.58.07.50.0
Jharkhand
Orissa
Jammu & Kashmir
Bihar
Punjab
Assam
Haryana
Madhya Pradesh
Chhattisgarh
GDP Growth rate CAGR % (2000-10)
UrbanizationPercentage%
Urbanization Percent vs GDP growth %
Size of bubble indicates GDP share of India
Source: CBHI, Team Analysis

DMIC States- Traditional Industrial Base
Approx. 43% contribution to the
country’s GDP
Contributes to more than half of
India’s industrial production &
exports
Accounts for over 40% of
workers & number of factories
across India
Early Bird Project: Exhibition cum Convention Centre Aurangabad

Cities will account for nearly 70% of India’s GDP by 2030
New DMIC Cities will help to meet pressures of urbanisation and also lead India’s economic
growth for the next 20 years
Multi-Modal Logistics Park at Rewari

Philosophy - Decentralised Regional Development

Smarter City Solution

IT Based City Operations & Governance Platform
A Compact city that
promotes the creation of
neighborhoods and walkable
places connected by transit

DMIC Logistics Data Bank
Aimed at improving competition, reducing transportation lead time and cost by sharing
container movement information on real time basis among all agencies in the Supply Chain
using an IT based platform.
Necessary to create an extensive database at an early stage to generate rapid changes in
supply chain.
NEC working on the Pilot Project

HOW DMIC WILL BE EXECUTED

Project Funding
Setting up of a Project Development Fund (PDF),
referred as DMIC-PDF, by raising at least INR 1000
Crore funds (US$250Million) which would be used as a
Revolving Fund
75% PPP
Budgetary
Resources
DMIC PDF
Other
sources
Government
of Japan-
50% (by way
of untied
loans)
Govt. of India
- 50% (by
way of a
grant)

DMIC Project Phases
7 Nodes being developed in DMIC Phase I
1. Dadri – Noida Ghaziabad IR, UP
2. Manesar – Bawal IR, Haryana
3. Neemrana – Khushkhera – Bhiwadi Raj
4. Pithampur- Dhar - Mhow IR, MP
5. Ahmedabad – Dholera IR, Gujarat
6. Nashik– Sinnar – Igatpuri Maharashtra
7 Dighi Port IA, Maharashtra
Series of PPP and NON PPP projects to
form the elements of each node.

Sources of Funds
• Grant assistance of up to 20 percent of the project
cost
• Grant by the Asian Development Bank (ADB) and
World Bank
• Loans will be provided to infrastructure companies
by India Infrastructure Finance Company Ltd.
(IIFCL)
Public-Private
Partnerships (PPP) via
Viability Gap Funding
(VGF)
• Main project stakeholder with a 26% share
• Conditions on JBIC investment entail the granting
of up to 85 percent export credit to Japanese
companies importing products to India
• Overseas investment loans to support overseas
investment by Japanese firms into India
Japan Bank for
International
Cooperation (JBIC)

Consultations with village communities

Skill Development

WHAT DMIC WOULD LOOK LIKE

Cities with world-class infrastructure
Roads
Hierarchy of Arterial and other Roads with
dedicated lanes for Public Transport,
Cycling, Walking

World-class amenities
Power Water
Total Requirement: 1,700 MW
Phase I : 400 MW
Total Demand = 950 mld
Phase I = 260 mld

Pithampur-Dhar- Mhow IR

Pithampur-Dhar- Mhow – Master Plan

Water Supply System & Phase 1 of IR
Replacement & Rehabilitation of
existing system and O&M
Raw water Source: Mahi dam
Water Allocation: 90mld
Length of Pipeline: 92 km
Total project cost : Rs. 350 Crore
To be implemented on DBFOT
Concession period : 30 Years

Multimodal Logistics Hub at Pithampur
Site Area : ~1.8 sq km
Design Capacity: 0.63 million TEUs
Indore-Dahod railway link under
implementation will connect it to the DFC
Current Status
Land Acquisition
Government land (0.158 sq. km) has
been transferred & possession taken
For Private land of 1.6214 sqkm,
Sections 4 & 6 notifications have been
completed and section-9 has been
issued.
Project Structuring being undertaken

Economic Corridor – Indore to Pithampur
Link between Pithampur and Indore (RoW-
75 M)
Economic Infrastructure Development
Mixed Use Based Product Mix
Current Status
Project referred to the State Steering
Committee
Land Acqsn - 0.97 sq. km reqd. for 75m
ROW ; comprising 0.1962 sq. km of Govt
land
Administrative approval of State Govt. for
land acquisition / transfer has been
accorded

Knowledge City near Ujjain
Current Status
Land Acquisition: 2.18 sq. km is Govt land. 2.09 sq. km already transferred)
Private portion: notification issued u/s 4 and 6 and action u/s 9 is being completed for
2.08sqkm; for remaining 0.16sqkm, Section 4 has been issued
Development of initial infrastructure i.e. access road, boundary wall, water and power line
would be initiated through DMIC funds.
ToR for inviting bids from consultants for detailed engg and TA is under finalisation
50 km from Indore
Planned Area: 4.42 sq km
Will provide skilled & technical workforce in
the DMIC
Cluster led development
Projected Capacity - 50,000 students
Total Population - 64,500

Khushkhera-Bhiwadi-Neemrana IR
Early Bird Projects:
Aerotropolis
Knowledge city
Neemrana - Bhiwadi Road link (50 km)

Concept Master Plan for KBN Investment Region
Area: 165sq km
Urbanisable Area – 101
Sq.Km
Target Population: 1.3million
Projected Employment –
0.55mn
Investment Region target
industries - Electronic,
Automotive,
Pharmaceuticals, Bio- tech
and ICT

Model Solar Project-Neemrana
MoU : New Energy & Industrial Technology
Development Organization (NEDO), Ministry of New
& Renewable Energy (MNRE), Ministry of Finance
(MoF) and DMICDC dated April 30, 2012
Location : Neemrana Industrial Park, Japanese
Zone, Rajasthan, INDIA
Project Scheme : 6.00 MWp Solar PV & 1.6 MW DG
Power
5.00 MWp Solar Power Project Feeding Power to
the Commercial Grid under JNNSM scheme
1.00 MWp Solar Power Project and 1.60 MW
Diesel Generator Set integrated with Smart Micro
Grid, Feeding Power to Industrial Consumers in
Neemrana Industrial Park

Neemrana Gas Engine Power Supply Project
Based on advanced Japanese technology in high heat efficiency.
Gas engine driven power station (Heat efficiency: 49%)
Reliable supply and maintenance on continuous basis
Tri-generation technology (to generate Electric power, Steam and Chilled water)
Expected Total efficiency :
81.1% （In the case of all
exhaust heat is collected with
chilled water)
Pilot project by Mitsui & Co., Ltd. , The Kansai Electric Power Co., Inc.

Aerotropolis
Strategically located between Delhi and
Jaipur , south of Bhiwadi Master Plan
Area
Total Area: 24 Sq.km
Total Cost: Rs. 4000 crores
Components:
Passenger & Cargo traffic handling
Non aviation - Business Parks, Hotels,
Distribution centers etc.
Maintenance Repair Overhaul (MRO)
Site & Techno-Economic Feasibility
Study approved by State Govt
NOC received from Ministry of Defence
NOC awaited from Ministry of Civil
Aviation

Dadri -Noida – Ghaziabad Investment Region

Multi Modal Logistics Hub at Dadri

Greater Noida / Boraki Railway Station
Conceived as a World Class
Passenger Hub, integrated with ISBT
and Metro
Site:160 ha site to north and west of
Boraki

Mega Projects - Gas based Power Plants
Capacity: 1000-1200 MW each.
Sites:
1. Ville Bhagad, District
Raigad, Maharashtra
2. Chainpura, District Guna,
Madhya Pradesh
3. Indapur, District Pune,
Maharashtra
4. Vaghel, District Patan,
Gujarat
5. Rajpur-Shahpur, District
Mehsana, Gujarat

Mega Projects Dahej Desalination Project
Asia’s Largest Desalination Plant with the capacity of 336 MLD

DMIC – Status Report
General steps of operation
• Acquisition of land is done by the state governments
• SPVs incorporated to set up base infrastructure or trunk infrastructure such as water and
power connections, a drainage system, broadband network, roads and so on
• Feasibility studies has been done
• Few Pilot projects on the way
• Industries will be invited to invest in the area
Phase 1 – current status
Development of seven new industrial cities
Plans for all the cities have been finalized
Work on the Dholera and Shendra-Bidkin investment regions is likely to begin
Deadline is 2019

JAPAN INDIA
Time Bound Everything starts and
finishes as scheduled.
Everybody takes buffer
time.
Decision-Making Bottom up Top down
Business style
And Planning
Think
Think
Think………Action
Action
Action
Action……..Think
Naturals Resources Young Populations

Japan
India
CLEAR SIMPLE PROJECT
HELP JAPAN TRADE
USE JAPANESE TECHNOLOGY
USE INDIAN RESOURCES / MAN POWER
HONEST AND FAIR RETURNS

Advantages of DMIC
Double
employment
potential in
five years
Triple
industrial
output in five
years
Quadruple
exports from
the region in
five years
Sector wise Employment Employment
Manufacturing/ Industrial Processing Area 2,000,000
Employment in agro/food processing and allied
infrastructure
200,000
IT/ITES/Biotech Hubs 600,000
Knowledge Cities 100,000
Logistics Infrastructure 100,000
Total 3,000,000

Opportunities across the value chain…1/2
PPP
• The policy and regulatory frameworks (concession agreements) are well established
• Substantial scale-up to create opportunities for various companies to venture as
“Project Developers
Contractors/
Consultants
• Business Opportunities from implementing agencies who will sub contract
construction
• Skilled manpower and sophisticated construction technology to be developed
• Mega projects like Delhi Metro, Highway, airports, ports projects have showcased
business opportunities.
O&M
Operators
• Emerging area of opportunity which has few players and capacity constraint.
• Going forward, the sectors will require equipments, systems and software

Opportunities across the value chain…2/2
Equipment
Suppliers
• Consistent demand of equipment due to mega infrastructure
development across sectors
• Huge business potential for overseas players to enter the market
Rolling
Stock
Suppliers
• Increasing demand for various types of passenger & freight rolling stock
• Current domestic capacity caters half the demand and hence increasing
imports
• Attractive opportunity exists for private players
Financing
• Various Financial Institutions and PE firms Japanese banks
• Attractive opportunity exists for FIs, PE firms, private investors

Disclaimer:
This presentation has been prepared by Ecovis RKCA for restricted distribution. No representation or warranty, either expressed or implied, is
made nor responsibility of any kind is accepted by Ecovis RKCA and its group companies, its directors or employees either as to the accuracy
or completeness of any information stated in this document. Neither Ecovis RKCA nor any of its affiliates and/or their directors, officers,
employees shall in any way be responsible or liable for any losses or damages whatsoever which any person may suffer or incur as a result of
acting or otherwise relying upon anything stated or inferred in or omitted from this presentation.
Opinions and projections found in this presentation reflect our opinion as of the presentation date and are subject to change without notice.
This presentation is neither intended nor should be considered as an offer or solicitation, or as the basis for any contract, for purchase of any
security, loan or other financial instrument.
Ecovis RKCA
515 Tulsiani Chambers
Nariman Point
Mumbai 400 021
India
Ph: +91 22 2204 4737
Website: www.ecovisrkca.com
private and confidential
Thank You

DMIC

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