Thursday 26 January 2012

Delhi-Mumbai Industrial Corridor



DMIC is an indo-japan mega infrastructure project of USD 90 billion with financial and technical aids from japan covering around 1483 KMs between Delhi and Mumbai.
The proposed Delhi-Mumbai Industrial corridor will create new parameters for establishing DMIC as ‘Global Manufacturing and Trading Hub’ by enhancing foreign investments, doubling the employment potential, tripling the industrial output and quadrupling exports from the region.
This project incorporates Nine Mega Industrial zones of about 200-250 sq. km., high speed freight line, three ports, and six air ports; a six-lane intersection-free expressway connecting the country’s political and financial capitals and a 4000 MW power plant. Several industrial estates and clusters, industrial hubs, with top-of-the-line infrastructure would be developed along this corridor to attract more foreign investment. Funds for the projects would come from the Indian government, Japanese loans, and investment by Japanese firms and through Japan depository receipts issued by the Indian companies. 
It is also envisaged that the alignment of the proposed corridor will have nine junction stations for exchange of traffic between the existing railway system and the DFC. The junctions are:


• Vasai Road: To cater to traffic to/from Mumbai, other than J.Nehru Port 

• Gothangam: For traffic to/from Hazira Complex, Jalgaon-Udhna

• Makarpura (Vadodara): For traffic to/from Ahmedabad, Vadodara and Vadodara -Godhra Routes 

• Amli Road (Sabarmati): For traffic to/from ICD-Sabarmati, ViramgamSabarmati Route, Ahmedabad, Rajkot and Bhavnagar Divisions of Western Railway 

• Palanpur: For traffic to/from Kandla/ Mundra Ports and Gandhidham Area 

• Marwar Junction: For Traffic from/to Jodhpur area (and lCD-Jodhpur) 

• Phulera: For traffic to/from Jaipur- Tundla and Jaipur-Sawai Madhopur Routes' 

• Rewari: For traffic to/from Rewari-Hissar-Ludhiana/Bathinda Routes' 

• Pirthala (Tughlakabad): For traffic to/from Tughlakabad (and ICDTughalakabad) 

Short listed Investment Regions (IRs):


• Dadri – Noida - Ghaziabad Investment Region in Uttar Pradesh as General Manufacturing Investment Region;

• Manesar – Bawal Investment Region in Haryana as Auto Component/ Automobile Investment Region;

• Khushkhera – Bhiwadi – Neemrana Investment Region in Rajasthan as General Manufacturing/ Automobile/ Auto Component Investment Region;

• Pitampura – Dhar – Mhow Investment Region in Madhya Pradesh

• Bharuch – Dahej Investment Region in Gujarat as Petroleum, Chemical and Petro Chemical Investment Region (PCPIR);

• Igatpuri – Nashik-Sinnar Investment Region in Maharashtra as General Manufacturing Investment Region;

Short listed Industrial Areas (IAs):

• Meerut – Muzaffarnagar Industrial Area in Uttar Pradesh, Engineering/ Manufacturing;

• Faridabad – Palwal Industrial Area in Haryana, Engineering & Manufacturing;

• Jaipur – Dausa Industrial Area in Rajasthan, Marble/Leather/Textile;

• Neemuch – Nayagaon Industrial Area in Madhya Pradaesh

• Industrial Area with Greenfield Port at Alewadi/ Dighi in Maharashtra, Greenfield Port Based

It is envisaged that a four-tier system, as institutional framework, would be set up for the implementation of DMIC. It constitutes:


• An Apex body, headed by the Finance Minister with concerned Central Ministers and Chief Ministers of respective DMIC States as Members for overall guidance, planning, and approvals;


• A Corporate entity, Delhi Mumbai Industrial Corridor Development Corporation (DMICDC), specially envisaged to coordinate Project Development, Finance and Implementation, headed by a full time CMD and having representation from the central government, state governments and FIs;


• A State-level Coordination Entity/ Nodal Agency responsible for coordination between the DMICDC and various state government entities and the project implementing agencies/ special purpose vehicles.


• Project specific special purpose vehicles (SPVs) who would actually implement the projects. These SPVs can be owned by state Governments in terms of governance structure, Board of Directors etc. Some of these SPVs can also be formed by central/state governments and their agencies.


The corridor project likely to be implemented in two phases namely – Phase-I & Phase-II. An estimated $90 to $100 billion would be required to create the infrastructure in the first phase of the project. Japanese companies are expected to invest over $10 billion in the proposed corridor during the first phase. The first phase of the corridor which includes development of cities is scheduled to be completed by 2018 and rest of the phases will extend upto 2030.
Dholera, which is 120 km from Ahmedabad is to be developed as a heavy engineering zone in phase I.  It is being planned as a self-sustainable eco-city with modern infrastructure. Once developed, it will cater to a population of 20 Lakh and create eight lakh jobs. After Chandigarh, Dholera will appear as a pre-planned city in the country with facilities like housing, schools, shopping complexes. Most of the construction will be vertical rather than horizontal to create space and save energy.
Apart from Dholera, there will be six cities along the corridor which will be self-sustainable in water, electricity and power. They will have their own gas-based power plants and an industrial waste recycling facility. The cities will utilize all their waste, based on Japan’s Kitakyushu model. In Maharashtra, a new city will be developed near Dighi Port spread across 350sq.km. The other cities will come up in Rajasthan, Haryana, Uttar Pradesh and Madhya Pradesh.
 All roofs in the cities will have rainwater harvesting system and solar panels. Solid waste will be recycled in a special plant and converted into household items. A consortium of four Japanese companies- Toshiba, Mitsubishi, Hitachi and JGC has started work on developing recycling units in Haryana, Gujarat, Maharashtra and Rajasthan.
 The cost of developing Dholera is 150,000 crore, with the Government making an initial investment of 13,000 crore. Thirty percent of the total cost will be borne by the Government while the rest will be oublic-private partnership.
Six gas based power plants-two in Gujarat and Maharashtra and one each in Madhya Pradesh and Rajasthan- will be established. One solar power plant will come up in Rajasthan. In the first phase, two Greenfield airports will come up in Gujarat and Rajasthan. The sites are being selected.The Gujarat Government has already acquired the land for the project while the other Governments are in the process of acquisition. Since 70 % of the project will depend on private investment, lots of concerns may come up regarding the approvals.

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