Sunday, September 25, 2011

Landscape as Delhi Mumbai Industrial Corridor and New SEVEN Mega Cities with Industrial Cluster would INVITE Indiscriminate Land Acquisition and Mass Scale Displacement after Jaitapur Nuclear Power Plant Cluster!Be AWARE!

More Calamity Impending on Aborigine Indigenous Landscape as Delhi Mumbai Industrial Corridor and New SEVEN Mega Cities with Industrial Cluster would INVITE Indiscriminate Land Acquisition and Mass Scale Displacement after Jaitapur Nuclear Power Plant Cluster!Be AWARE!

Palash Biswas
A Special Purpose Vehicle, Delhi Mumbai Industrial Corridor Development Corporation Limited (DMICDC), was incorporated on 7th January, 2008, as the Project Development Agency for DMIC. It is presided by Shri R.P. Singh, Secretary, Department of Industrial Policy & Promotion, Ministry of Commerce & Industries, Government of India.


The restructuring of the $90-Union cabinet on Thursday gave the thumbs up for the billion Delhi-Mumbai Industrial Corridor, or DMIC, after months of inter-ministerial consultations.

The cabinet also approved a change in the holding structure of the company executing the project, which will see private sector promoters replaced by state-run financial institutions.

"This project will be the largest infrastructure project in PPP mode with least investment and budgetary support coming from the government and this needs to be replicated throughout the country as an efficient urbanisation business model," DIPP Secretary RP Singh told ET.

This project includes nine mega industrial zones of about 200-250 sq km, a high-speed freight line, three ports and six airports, a six-lane intersection-free expressway connecting Delhi and Mumbai and a 4,000-MW power plant.

The Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) will now set up an 18,500-crore revolving fund for financing trunk infrastructure such as sewage disposal and roads, with the government providing 35-40% of the financing through the various stages of the project.

"An additional and equal amount will be put by the government of Japan," said a senior official involved directly with the project. The 51% stake of Infrastructure Leasing and Financial Services (IL&FS) and Infrastructure Development Finance Company (IDFC) in the company will be bought out by government-run financial institutions like LIC, among others.

The government will continue to hold 49% in the venture. This move was initiated primarily to avoid conflict of interest given that both IL&FS and IDFC will be allowed to bid for projects part of the DMIC.

According to sources, 60-65% of the projects will be structured on PPP basis. The Cabinet has also approved the setting up of a special purpose vehicle in each city where the Centre would contribute funds whereas land would be acquired by the state.

"The SPV is primarily to raise long-term debt finance through required guarantees from the DMIC Project Implementation Trust Fund to make it viable for investments by insurance and pension funds," a DMICDC official told ET.

The share of the Trust in these city SPVs is expected to be up to 50% but in projects that might be cut through cities the Trusts' share can be up to 100%, the official explained.

The DMICDC is also expected to become a consultant for all state governments and SPV.

The 1,500-km long Delhi-Mumbai Industrial Corridor would run across Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.

Plans are also in place to integrate these cities through new airports, new rail links and arteries of ten-lane highways. The creation of a new urban vision was not the original intention, though. The DMIC was an economic and commercial initiative of the government, intended to boost manufacturing through the development of industrial centres along the western leg of the Mumbai-Delhi-Kolkata dedicated railway freight corridor.

"As we went along and looked at the international experience, we realized that we needed to go beyond that," said Amitabh Kant, CEO and managing director of the DMIC Development Corporation. "We needed to create new generation cities in which people can live, work and play. We needed cities with outstanding infrastructure and quality of life."

Experts from the US, UK, Singapore and the Netherlands were called in and what emerged could radically change the approach towards urbanization in a country that is considered a ``reluctant urbaniser`` compared to other Asian countries.

A total of 24 such new generation cities are being planned for phased development across UP, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra. The first phase will see seven of them opening their doors by 2018-19. The processes of acquiring land, getting government clearances and generating investment have already started.


DELHI-MUMBAI INDUSTRIAL CORRIDOR (DMIC)
A high impact industrial area within 150 kms distance on both sides of the Dedicated Freight Corridor (DFC), with an investment potential of US$ 90bn being laid down between Delhi and Mumbai
Delhi-Mumbai Industrial Corridor(DMIC)
DFC is a new rail transportation system with high axel, multi-modal and computerised features
38% (564 km) of the 1500 kms length of DFC will pass through Gujarat
DMIC area to be developed as 'Global Manufacturing & Trading Hub' in two phases (6 nodes) – supported by world class infrastructure & enabling policy framework
Expected to triple industrial output in five years
The influence area covers
• 62% of total area of Gujarat (18 out of 26 districts are within the influence area)
• Investment potential for Gujarat is about US$ 30bn (1/3rd of total investment potential in DMIC)

More Calamity Impending on Aborigine Indigenous Landscape as Delhi Mumbai Industrial Corridor and New SEVEN Mega Cities with Industrial Cluster would INVITE Indiscriminate Land Acquisition and Mass Scale Displacement after Jaitapur Nuclear Power Plant Cluster!Be AWARE!

 India`s Shanghai dream has shifted base, from Mumbai to the futuristic cities that are being planned along the Delhi-Mumbai Industrial Corridor (DMIC). Masterplans are ready for seven brand new cities spanning six states in what will be the biggest urban development project since Chandigarh was built in 1953.

The blueprints are inspired by industrial hubs in China and South Korea and have the potential of revolutionizing the country`s urban landscape with the introduction of what modern town planners call ``smart city`` concepts.

Their key features are compact, vertical developments, an efficient public transportation system, the use of digital technology to create smart grids for better management of civic infrastructure, recycling of sewage water for industrial use, green spaces, cycle tracks and easy accessibility to goods, services and activities designed to foster a sense of community.


The proposed Delhi Mumbai Industrial Corridor (DMIC) has increased the potential of industrial development The Delhi-Mumbai Industrial Corridor (DMIC) is a mega infrastructure project of USD 90 billion with the financial and technical aid from Japan, covering an overall length of 1483 kms between the national capital and the business capital of India, i.e., Delhi and Mumbai respectively

This project incorporates nine mega industrial zones of about 200-250 sq. km, high-speed freight line, three ports, six airports, 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-ofthe-line infrastructure would be developed along this corridor to attract more foreign investment.

"About 40 per cent of the DMIC passes through Rajasthan. This will provide an opportunity to companies to set up units along the corridor and thus contribute to the economic development of the state," PHD Chamber of Commerce president Salil Bhandari said recently. Key industries like mineral-based industries, textiles, gems and jewellery, and agro processing units would benefit from the corridor.


Minister of state for communications and IT Sachin Pilot said primary requirement for economic development of a state was connectivity and added that agreements for two airports, to be built in the near future, have been signed.

Funds for the projects would come from the Indian government, Japanese loans, and investment by Japanese firms and throughJapan depository receipts issued by the Indian companies.

The high-speed connectivity between Delhi and Mumbai offers immense opportunities for development of an industrial corridor along the alignment of the connecting infrastructure . 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. The vision for DMIC is to create strong economic base in this band with globally competitive environment and state-ofthe-art infrastructure to activate local commerce, enhance foreign investments, real-estate investments and attain sustainable development. In addition to this, DMIC would also include development of requisite feeder rail/road connectivity to hinterland/markets and select parts along the western coast.


Delhi Mumbai Industrial Corridor is conceived to be developed as a Model Industrial Corridor of international standards with emphasis on expanding the manufacturing and services base and develop DMIC as the 'Global Manufacturing and Trading Hub'

DMICDC undertakes project development services for investment 
regions / industrial areas/ economic regions/ industrial nodes and townships, for various central government agencies and also help in assisting state governments.

DMICDC acts as an intermediary for the purpose of development and establishment of infrastructure projects and facilities in India through developing and disseminating appropriate financial instruments, negotiating loans and advances of all nature, and formulating schemes for mobilization of resources and extension of credit for infrastructure.

In addition study, research and survey issues relating to financing infrastructure and to advise the Government, State Governments, Municipal Authorities, other Development Authorities, Companies, and Project Developers.

DMICDC acts as a pass through entity for specific projects and raise various financing instruments such as 'Project Development Fund (PDF)' that could be used as a Revolving Fund and would specifically be used for undertaking project development activities on Public Private Partnership basis.


Delhi Mumbai Industrial Corridor Project

From Wikipedia, the free encyclopedia
Location of Delhi and Mumbai within India

The Delhi-Mumbai Industrial Corridor Project is a State-Sponsored Industrial Development Project of the Government of India. It is an ambitious project aimed at developing an Industrial Zone spanning across six states in India. The project will see major expansion of Infrastructure and Industry – including industrial clusters and rail, road, port, air connectivity – in the states along the route of the Corridor. The ambitious Delhi Mumbai Industrial Corridor (DMIC) has received major boost with India and Japan inking an agreement to set up a project development fund. The initial size of the Fund will be INR1,000 crore (US$223 million). Both the Japanese and Indian governments contribute equally.

Contents

 [hide]

[edit]Contribution from India

Ministry of Commerce and Industry Anand Sharma has proposed the establishment of a USD 9 billion revolving fund with matching contribution from India and Japan to kick start the implementation process of the USD 100 billion Delhi Mumbai Industrial Corridor Project.[1]

[edit]States Included

The corridor would include six mega investment regions of 200 square kilometers each and will run through six states Delhi, Western Uttar Pradesh, Southern Haryana, Eastern Rajasthan, Eastern Gujarat and Western Maharashtra. The corridor, spread across 2,700 km with an additional 5,000 km of feeder lines connecting Mumbai to West Bengal.

[edit]Employment Generation

Conceived as a global manufacturing and trading hub, the project is expected to double employment potential, triple industrial output and quadruple exports from the region in five years. The total employment to be generated from the project is 3 million, the bulk of which will be in the manufacturing/processing sectors.

The ambitious project will be funded through private-public partnership and foreign investment. Japan will be a major investor for this project. The corridor will span 1483 km.

It will include a 4000 MW power plant, three seaports and six airports in addition to connectivity with the existing ports. The industrial corridor project will be implemented by the Delhi-Mumbai Industrial Corridor Development Corporation, an autonomous body composed of government and the private sector.

It will be implemented through special purpose vehicles [SPVs]. The project is expected to deliver a 2-3-4-5 benefit: to double employment (2), triple industrial output (3) and quadruple exports (4) from the region in five years (5). It will built along a dedicated rail freight corridor, and once commissioned, will reduce the Delhi-Mumbai transit time from 60 to 36 hours.

[edit]Northern Peripheral Road

Northern Peripheral Road road is being developed under the public private partnership (PPP) model. This stretch will connect Dwarka with National Highway 8 at Kherki Daula and will pass Pataudi Road. The NPR stretch has been planned as an alternate link road between Delhi and Gurgaon, and is expected to ease the traffic situation on the Delhi-Gurgaon Expressway. The road will also provide connectivity to the much-touted Reliance-HSIIDC SEZ besides the Garhi Harsaru dry depot[2].

Much like Delhi, Gurgaon too will have a BRT corridor to decongestant traffic on the Northern Peripheral Road. In several sections, the NPR will have provisions for the Bus Rapid Transit (BRT) corridor to ensure smooth flow of traffic. The road will be fully developed in March 2012.[3]

[edit]See also

[edit]References

Text document with red question mark.svg
 This article uses bare URLs for citations. Please consider adding full citations so that the article remains verifiable in the future. Several templates and the Reflinks tool are available to assist in formatting. (July 2011)
  1. ^ http://www.steelguru.com/indian_news/India_proposes_USD_9_billion_fund_for_Delhi_to_Mumbai_corridor_project/191363.html
  2. ^ http://timesofindia.indiatimes.com/city/gurgaon/HUDA-floats-tender-for-Northern-Peripheral-Road/articleshow/7512548.cms
  3. ^ http://timesofindia.indiatimes.com/city/gurgaon/NPR-project-to-have-BRT-corridor-in-several-sections/articleshow/7517967.cms

[edit]External links

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  ABOUT DMIC
 

OBJECTIVES

 

Ø     The DMIC seeks 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. 

Ø      DMIC proposed to be developed on either side of the Western Dedicated Freight Corridor of Ministry of Railways within a band of 150-200 kms, as a Model Industrial Corridor of international standards with emphasis on expanding the manufacturing and services base and develop DMIC as the 'Global Manufacturing and Trading Hub'.

Ø      The Project aims at doubling the employment potential, tripling the industrial output and quadrupling exports from the region, in the first five years. 

 

APEX MONITORING AUTHORITY  Annexure I |Annexure II

 

Ø      Apex Monitoring Authority set up on 11th September 2007 with the Finance Minister as Chairperson and seven Union Ministers/Dy. Chairperson, Planning Commission/Chief Ministers of six States as Members to give overall guidance, planning and approvals. Four more Union Ministers are Invitees.

 

Ø      Similar monitoring mechanism at State level in place.

 


 

II  DMICDC

 

Ø      Delhi – Mumbai Industrial Corridor Development Corporation Ltd. (DMICDC), the central SPV incorporated on 7th January, 2008 with authorized equity base of Rs.10 Crores (49% equity participation by GoI, 41% by IL&FS and 10% by IDFC). 

 

Ø      DMICDC envisaged for project development, coordinating the implementation of the numerous projects and also raising finances, wherever needed.

 

Ø      Proposal to offer 24% of GoI equity @ 4% to each of the six DMIC States, thus diluting GoI equity from 49% to 25% under consideration.

 

PROJECT MANAGEMENT CONSULTANT OF DMICDC

 

Ø      M/s IL&FS Infrastructure Development Corporation Limited (IIDC) appointed as Project Management Consultant (PMC) to DMICDC on 28.1.2008.

 

BOARD MEETINGS OF DMICDC

 

Ø      Secretary, DIPP is ex-officio Chairman of DMICDC.  Shri Amitabh Kant, IAS (KL: 1980) has joined DMICDC on 21st August 2009 as its first Chief Executive Officer.

 

Ø      The Directors of the Board consist of the following:

·  Shri R.P. Singh, Secretary, DIPP

·  Shri Talleen Kumar, Joint Secretary, DIPP

·  Shri N.K. Shukla, Executive Director (Perspective Planning), Railway Board.

·  Dr. Amit Mitra, Secretary General, FICCI

·  Shri Jai Prakash Batra, Ex Chairman, Railway Board

·  Shri Hari Sankaran, MD&CEO, IL&FS Infrastructure Development Corporation Limited

·  Shri Pradeep Puri, Executive Chairman, IL&FS Waste Management and Urban Services Ltd.

·  Shri K. Ramchand, Chief of Operations-Infrastructure, IL&FS Infrastructure Development Corporation Limited

·  Shri  Athar Shahab, Dy. Managing Director, IDFC Projects Ltd.

 

Ø      Fourteen meetings of the Board of Directors of DMICDC held so far and important decisions taken are:-

  • First Board Meeting held on 28th January, 2008. M/s IL&FS Infrastructure Development Corporation Limited (IIDC) appointed as Project Management Consultant (PMC) to DMICDC.

 

  • Second Board Meeting held on 16th April 2008.  Board reviewed the progress of project development activity, status of establishment of 'Project Development Fund' and selection process to appoint consultants for Phase-1A activities. 

 

  • Third Board Meeting held on 6th June, 2008 wherein the revised RfP and further activities of Phase-1A were discussed and a committee was formed for technical and financial evaluation of the bids received from the short listed bidders.

 

  • Fourth Board Meeting held on 17th September 2008 and Consultancy for Master Planning of the entire DMIC Region awarded.  

 

  • Fifth Board Meeting held on 31st October 2008 and Consultancy for Master Planning of individual investment nodes in Gujarat and Madhya Pradesh awarded.

 

  • Sixth Board Meeting held on 22nd January 2009 and Consultancy for Master Planning of individual investment node in Haryana awarded.  All the three Master Planning Consultants made power point presentations appraising the progress of DMIC project in their respective regions.

 

  • Seventh Board Meeting held on 16th April 2009 considered the CVs received for the post of Chief Executive of DMICDC and none found suitable to be short listed.  The Board resolved that an officer of the All India/ Central Service at the level of Additional Secretary/ Senior Joint Secretary on deputation from the Government would be most suited at this early stage of the development of the project since the job requires close interaction with State Governments.

 

  • Eighth Board Meeting held on 4th June 2009 approved the Annual Accounts of DMICDC for the financial year 2008-09.

 

  • Ninth Board Meeting held on 29th September 2009 wherein presentations were made by M/s Halcrow Consulting on the Draft Concept Plan for Dholera Special Investment Region and Mega Industrial Park (Early Bird Project).  The Board also took note of the Term sheet submitted by the JBIC. 

 

  • Tenth Board Meeting held on 21st December 2009.  The Board approved the Perspective Plan for overall DMIC Region and the projects to be undertaken for pre-feasibility studies as part of Perspective Plan.  Board also approved initiating project development activities of six power projects across various States in the DMIC region.

 

  • Eleventh meeting held on 29th March 2010 and the Board reviewed the progress of planning of investment nodes in Gujarat, MP, Haryana and Maharashtra.  The Board also approved the memorandum of cooperation proposed to be signed with GAIL (India) Ltd.

 

  • Twelfth meeting held on 23rd June 2010 and the Board has taken note of the reconstitution of the Audit Committee as also progress of the project.

 

  • Thirteenth meeting held on 5th August 2010.  The Board approved the annual account of the company and passed a resolution to increase the Authorized Share Capital of the company subject to consent of the members in the Annual General Meeting.

 

  • Fourteenth meeting held on 27th December, 2010.

 

III  DMIC - PDF

 

DMICDC will have a Project Development Fund (PDF) referred to as 'DMIC - PDF'.   An amount of Rs. 330 crore has been allocated for the PDF under the 11thPlan.  The Japanese share in PDF amounting to US $ 75 Million is proposed to be secured as commercial loan from Japan Bank for International Cooperation (JBIC), the international wing of Japan Finance Corporation handling commercial operations.  The PDF would have two separate accounts, one PDF – Japanese Account and other PDF - Indian Account.

 

It is proposed to secure Japanese loan for DMIC-PDF through India Infrastructure Finance Company Limited (IIFCL) by way of a Loan Agreement (as per standard terms and conditions and subject to negotiation) to be executed between IIFCL and JBIC and the Ministry of Finance, Government of India will provide sovereign guarantee to this loan.  DMICDC will be a sub-borrower of the loan from IIFCL through a separate loan agreement and will accordingly pay back interest and Principal along with other dues to IIFCL as per the terms of loan agreement. 

 

The PDF will initially finance the preparation of overall development (popularly known as Master Plans) and Feasibility Studies of identified projects therein which will be subsequently recovered by apportioning on to respective projects that would be developed by the private sector. Thus the PDF would be replenished for investment on developing other such projects.

 

Both Indian and Japanese Accounts of DMIC-PDF would be set up as typical Corporate (Current) Accounts of DMICDC and the prevailing norms for Corporate Accounts as per Banking Regulations of India would be applicable.

 

The Advisory/Retainership Fee for the PMC will be paid through PDF on monthly/mile stone basis.

 

Funds under both the Indian and Japanese Accounts of PDF, subjected to JETRO's recommendation of 'Japanese interest' for availing funds from Japanese Account, would be used for :

 

  • Payment for the project preparatory/development expenses (Master Planning/Feasibility Studies/Environment Impact Assessment Studies/other technical studies, preparation of tender documents, Bid Process Management for selection of Consultants/Entrepreneurs, legal fees for setting up special purpose companies etc.) incurred up to the stage of selecting a successful developer for specific Greenfield and Brownfield industrial, physical and social infrastructure projects in the DMIC.
  • Payment to PMC and other external consultants.
  • In addition, the funds under PDF will cater to all expenses related to the setting up of the PDF, syndicating contributions to the PDF, as well as its operations, including but not limited to fees and expenses of custodians, paying agent, registrar, counsel and independent accountants, and any taxes, fees or other government charges levied against the Fund.

Funds under 'DMIC PDF – Japanese Account' shall only be used for payment towards project preparatory/development expenses, which is referred to in the first item above.  

 

EFC APPROVAL

 

The Expenditure Finance Committee in its meeting held on 7th July 2008 recommended allocation of Rs.100 crore (to be contributed equally by Government of India and Government of Japan) during 2008-09 for the DMIC Project.  The EFC recommendation has been approved by the Union Minister for Commerce and Industry and the Union Finance Minister.  The entire budget allocation of Rs.50 crores for 2008 – 09 was released to DMICDC.

 

Another meeting of EFC held under the chairmanship of Secretary, DIPP on 24th December 2009 which recommended allocation of additional amount of Rs.93 Crore for carrying out the remaining Phase 1A project development activities till March 2011 and delinking of Japanese contribution from the purview of EFC since the Japanese contribution will be limited only to the specific Japanese projects and will be regulated by JETRO guidelines.  The EFC recommendation has been approved by the Union Minister for Commerce and Industry and the Union Finance Minister. 

 

An amount of Rs.132.00 crore has been released by the Government of India since 2008-09 till date to the DMICDC for project development activities.

 

JAPANESE CONTRIBUTION – JBIC LOAN

 

Ø      MoU between JBIC and IIFCL/DMICDC signed during Hon'ble Prime Minister's visit to Japan on 21st October 2008 to facilitate further cooperation in the DMIC project including untied loan for the project Annexure III 

 

Ø      The terms and conditions of loan, loan agreement and guarantee form  examined in consultation with the MoF/MEA/MoLaw.

 

Ø      First Round of Negotiations with JBIC officials held on 6th October 2008 in Delhi.  Second Round of Negotiations held on 10th & 11th November 2008 in Delhi.  Japanese side requested to make changes in Loan Agreement, Form of Guarantee and also requested to forward the Term Sheet.  An inter-departmental meeting held on 22nd December 2008 with representatives of Finance/Law/IIFCL to concretize GoI views on all outstanding issues. Third Round of Negotiations held on 16th July 2009.  Fourth Round of Negotiations held on 24/25 September 2009 and the Japanese side requested to alter some commercial terms of the loan.  Fifth Round of Negotiations held on 25/26 November 2009 to finalize the loan documents. 

 

Ø      Loan Agreement between IIFCL and JBIC signed on 28th December 2009 along with sovereign guarantee from Government of India (Ministry of Finance).

 

IV  TASK FORCE

 

Ø      Task Force set up under MoU between Ministry of Commerce & Industry, GoI and its Japanese Counterpart to assist in DMIC planning.  Secretary, DIPP and the Vice-Minister of the Ministry of Economy, Trade & Industry (METI), Government of Japan are the Co-Chairmen.

 

Ø      Task Force has held nine meetings – five in India and four in Japan and provided useful inputs for the project.

 

Ø      First three meetings held before July 2007 were helpful in finalizing the Concept Paper.

 

Ø      Fourth meeting was held in New Delhi in October 2007 and fifth meeting held in Tokyo in February 2009 where the investors from India and Japan evinced their interest regarding investing in the project.

 

Ø      Sixth and seventh meeting were held in New Delhi on 13th July 2009 and 24th December 2009 respectively where the progress of the Project was reviewed and the future course of action discussed.  As decided in the 6th meeting of the Indo-Japan Task Force held in July 2009, the following action have been taken:

o       A JETRO Expert has been posted in DMICDC w.e.f 22nd October 2009 to provide technical assistance. DMICDC has signed an MoU with JETRO.

o       The Association for Overseas Technical Scholarship (AOTS) under the Ministry of Economy, Trade and Industry (METI), Government of Japan has organized a Training Programme on Trade and Investment Promotion for India in Tokyo for senior officials from DMIC and Nodal Agencies of the DMIC States from 30th November to 4th December 2009.

Ø      On 28th December 2009, DMICDC has signed an MoU with JETRO on "Development of Smart Communities and Eco-friendly Townships".  Four projects in the following regions/nodes, Manesar-Bawal region, Nashik-Sinnar Region and Dahej & Changodar Regions, identified for proposed pilot feasibility studies.  Japanese consultants for each of the States of Haryana, Maharashtra and Gujarat have been appointed by METI.  DMICDC has appointed an Indian consultant to prepare the baseline database to facilitate the Japanese in their work in India.  MoUs between DMICDC, Japanese consortia and state governments signed on 30th April 2010.  Updated progress of the four pilot project is given in the DMU report.

 

Ø      Eighth meeting of the Task Force held on 16th June 2010 in Tokyo.  Both sides agreed to examine the Financing Scheme for DMIC projects and operationalizing of PDF at a technical level and report in the next meeting of Task Force.  The Japanese side announced inclusion of another Early Bird Project.

 

Ø      Ninth meeting of the Task Force held on 21st January, 2011 in New Delhi.

 


 

V  NEWS & EVENTS

 

MOUs SIGNED BY DMICDC WITH THE STATES

 

Ø      DMICDC has signed MoUs with all the six DMIC States detailed as follows:  with the State Government of Gujarat on 25th July, 2008, with the Government of Madhya Pradesh on 26th August, 2008, with the Government of Haryana on 3rd October 2008, with the Government of Rajasthan on 20th February 2009, with the Government of Maharashtra on 18th August 2009 and with the Government of Uttar Pradesh on 30th December 2009, for preparation of perspective and development plan for each Node jointly. 

 

EARLY BIRD PROJECTS

 

Ø      Early bird infrastructure projects finalized for all the DMIC States. Annexure IV

 

Ø      The Japanese side also announced six Early Bird Projects. Annexure V

 

APPOINTMENT OF CONSULTANTS AND SUBMISSION OF REPORTS

 

Ø      Details of appointment of Consultants and updated progress of the project in each investment node is given in the DMU Report.

 

Ø      In the meeting held on 9th January 2010 between the Union Minister of Commerce & Industry and Chief Minister, Rajasthan, it was decided to develop a "National Manufacturing & Investment Zone" (NMIZ) as an integral component of DMIC Project.  A Task Force constituted on 27th January 2010 to facilitate the implementation of NMIZ.  First meeting of the Task Force held on 5th May 2010.

MONITORING COMMITTEE

Ø      PMO has constituted a Monitoring Committee on 5th June 2009 to monitor the progress of DMIC and DFC Projects under the Chairmanship of Principal Secretary to PM and Chairman, Railway Board, Foreign Secretary, Finance Secretary and Secretary, DIPP are its members.  Chief Secretaries of the participating states in the DMIC would be invited as and when required.

Ø       1st Meeting held on 29th June 2009.  DIPP was directed to send revised timelines with the approval of Hon'ble Minister.  On 31st July 2009, DIPP forwarded the revised timelines to PMO.

Ø      2nd meeting of Monitoring Committee for DMIC Project held under the chairmanship of Principal Secretary to PM on 18th November 2009. 

Ø      As decided in the meeting, Draft Composition and TORs for Water Committee for DMIC region forwarded to the PMO on 9th December 2009 with the approval of Secretary, DIPP.  On further directions from the PMO, the Draft Composition and TORs for Water Committee forwarded on 18th January 2010 to the Secretary, Ministry of Water Resources for concurrence.  As decided in the 3rd meeting of the Monitoring Committee, the Department of Industrial Policy and Promotion, with the concurrence of the Ministry of Water Resources, has constituted a Committee on 13th August 2010 under the chairmanship of Secretary, Ministry of Water Resources to look into the availability of water in the DMIC region.  1st meeting of the Committee held on 16th September 2010.

Ø       As directed in the 2nd meeting, revised timelines for DMIC project as approved by the Hon'ble CIM sent to PMO on 6th April 2010 Annexure VI

Ø      3rd meeting of the Monitoring Committee held on 22nd June 2010 and following decisions taken in the meeting:

o       DIPP to move a Cabinet Note for allocation of funds for the first 6 nodes of DMIC to finance the development of trunk infrastructure projects at these nodes.

o       A Committee under Secretary, Water Resources comprising Secretary, DIPP, CEO&MD, DMICDC and concerned Secretaries of DMIC States to be constituted and Secretary, Water Resources to convene a meeting to find solutions to the issue of water availability at the DMIC nodes, especially in Haryana and Rajasthan.

o       Secretary, DIPP and CEO&MD, DMICDC to hold a meeting with Secretary PNG for allocation of gas for the DMIC Power projects.

o       Ministry of Railways to initiate action for the development of spurs to the DMIC nodes.  Chairman, Railway Board to coordinate and convene a meeting in this regard.

o       The requirement of expressways to the new cities to be taken up by DIPP on priority with Ministry of Road Transport and Highways and the Planning Commission.

§         In pursuance of the decisions taken in the meetings of the Monitoring Committee for the DMIC Project held on 18th November 2009 and 22nd June 2010, the Department of Industrial Policy and Promotion, with the concurrence of the Ministry of Water Resources, has constituted a Committee on 13th August 2010 under the chairmanship of Secretary, Ministry of Water Resources to look into the availability of water in the DMIC region.  First meeting of the Committee held on 16thSeptember 2010.

Ø      4th meeting of the Committee was held on 1st December 2010.  As decided in the meeting, the Department of Industrial Policy and Promotion has circulated a Cabinet Note on the financial and Institutional structure for the development of new industrial cities in the DMIC on 8th December, 2010 for inter-Ministerial consultations.

 

DELIVERY MONITORING UNIT

Ø      Prime Minister's Office has notified on 7th July 2009 the setting up of a Delivery Monitoring Unit in PMO to review a select number of flagship programmes/ initiatives/ iconic projects and one of the projects listed being the "Delhi – Mumbai Industrial Corridor (DMIC) Project".

Ø      As desired by PMO, the "Proforma for Reporting to the Delivery Monitoring Unit" giving current status of the project is being uploaded regularly on the website of DIPP. Proforma for Reporting to the Delivery Monitoring Unit.

Ø      As directed by the PMO, Secretary, DIPP apprises Principal Secretary to PM, every quarter demi-officially, giving assessment of the progress of the project in terms of the outcomes/ targets and timeframes and specifically bringing out issues that may require attention or resolution at a higher level.

 

 VI  PAST ACTIVITIES

 

Ø      MOU signed between Government of India and Government of Japan during Hon'ble Prime Minister's visit to Tokyo in December 2006 to promote investments and explore opportunities for mutual cooperation. Annexure VII

 

Ø      IL&FS identified and awarded the work of preparing Concept Report and the Report was ready by the end of July 2007

 

Ø      Government of India accorded 'in principle' approval on 16th August 2007 to the following proposals in regard to the Project outline:

i)                    Development of the Delhi Mumbai Industrial Corridor

ii)                  Coverage of Investment Regions & Industrial Areas in Phase I of DMIC project.

iii)                Organization structure including setting up of an Apex Authority chaired by the Union Finance Minister

iv)                Formation of Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) for which Deptt. Of Industrial Policy & Promotion will initiate immediate action.

 

Ø      The Project Influence Area of DMIC covers parts of the States of Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.

 

Ø      The Project is proposed to be developed in two phases.  Phase I of the project is planned to be completed by 2013.  Phase II is planned to be completed by 2018.

 

Ø      6 Investment Regions and 6 Industrial Areas (listed below) proposed to be developed in Phase I of the project.

 

Investment Regions:

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

§         Manesar-Bawal Region in Haryana as Auto Component/ Automobile Investment Region;

§         Kushkhera-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) (Subsequently, on Gujarat Government's request this Region is replaced with Ahmedabad-Dholera Investment Region, subject to the approval of Apex Monitoring Authority)

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

§         Pitampura-Dhar-Mhow in Madhya Pradesh as General Manufacturing Investment Region.

 

Industrial Areas:

§         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; (Subsequently, Government of Rajasthan requested to replace this IA with Kishangarh, Ajmer)

§         Vadodara-Ankleshwar Zone in Gujarat as General Manufacturing Industrial Area;

§         Industrial Area with Greenfield Port at Dighi in Maharashtra;

§         Nimach-Nayagaon in Madhya Pradesh as Engineering and Agro-Processing Industrial Area.

 

Ø      Following 12 nodes identified tentatively for development in Phase II of the project:-

Investment Regions:

§         Kundli – Sonepat Investment Region

§         Ajmer-Kishangarh Investment Region

§         Bharuch-Dahej Investment Region

§         Dhule-Nardhana Investment Region

§         Ratlam-Nagda Investment Region

Industrial Areas:

§         Rewari-Hissar Industrial Area

§         Rajsamand-Bhilwara Industrial Area

§         Pali-Marwar Industrial Area

§         Surat-Navsari Industrial Area

§         Valsad-Umbergaon Industrial Area

§         Pune-Khed Industrial Area

§         Shajhapur-Dewas Industrial Area

 

 



The new seven sisters
Paris Hilton in a sari-inspired outfit at a promotional in Mumbai on Saturday. The hotel heiress, on her first visit to India, described the country a ...  | Read
Seven new hi-tech, green, planned cities are coming up in India. Seetha on what's fuelling this burst of urbanisation

If you despair of India's unplanned, and often ugly, urban sprawl, here's the good news. In the next 20 years the country will have seven spanking new planned, hi-tech, green cities. They'll have green belts, smart meters for water and power connections, and smart grids for power and water supply.

That's not all. These urban centres will have facilities for recreation, schools, colleges and hospitals, apart from residential, industrial and commercial areas. In some of them, residential areas will be mixed with commercial or industrial areas. In others, zones for commerce and industry and residences will be clearly demarcated.

Strung across western India, and set to house between 1 million and 3 million people each, the seven-city project got a boost last week when the Union Cabinet sanctioned Rs 1,75,00 crore for developing their trunk infrastructure — sewerage, drainage, earthworks, waste management, roadworks and flood management.

Ever since state capitals like Bhubaneswar, Chandigarh and Gandhinagar were developed between 1950 and 1970, India hasn't witnessed cities coming up from scratch. The only exception is New Raipur in Chhattisgarh, which is being completed now.

The project is still on the drawing board, of course, and the first phase — 25-50 sqkm industrial hubs — will come up by 2018. First off the block is likely to be Dholera in Gujarat, which, at 540 sqkm, will be only slightly smaller than Singapore. "It's a tough and difficult project," says the man charged with this task — Amitabh Kant, managing director and chief executive officer of the Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC). The seven towns fall within the DMIC, which cuts through six states — Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Maharashtra and Gujarat (see map).

Well-planned, hi-tech and green, these will be cities of the future. "Today's cities have to be compact, vertical and sustainable," says Kant. "These will be cities where people can live, work and play, which conserve energy and enable all classes to live together," adds Talleen Kumar, joint secretary in the central government's department of industrial policy and promotion, which is overseeing the industrial corridor project.

At Dholera, there's a lot of focus on public spaces, with landscaping of road space. The idea is to encourage people to walk around and mingle, with the needs of blue-collar workers (neglected in most cities) being a focus area. "They will be modern, lively industrial cities, unlike those developed in India in the past," says a planning expert who declined to be named.

They will also be smart cities, with extensive use of information technology (IT). So homes, offices and factories will have smart meters for water and power connections, apart from smart grids for power and water supply. With IT-enabled smart grids, for example, solar power from individual units can be ploughed back into the grid. Japanese electronic majors like Hitachi, Itochu Corp, Mitsubishi, Toshiba and NEC are among the members of the four Japanese consortia developing these smart communities.

Amitabh Kant, MD and CEO, DMICDC

The cities will also use environment-friendly systems for a range of services, from public transport to sewage treatment and waste management. Dholera will have a mixed land use and polycentric structure, with residential areas close to commercial and industrial areas so that most people can walk or cycle to work, reducing the need for fuel-guzzling transport. Each of the cities will also have provisions for mass public transport — a bus rapid transport system or light rail transport like metros or monorail.

Six gas-based power stations in the corridor will provide clean energy to these cities, besides which there are also plans for solar power projects in Rajasthan and Gujarat.

Global firms drawing up master plans for these cities are already anticipating and addressing problems. In Dholera, for example, global consulting firm Halcrow has ensured that industrial units don't face the expressway that cuts through the city site and that there are no service roads along it. So vehicles entering or leaving the premises will not come directly on to the expressway — a common problem in many highways and urban expressways in India.

So what's driving this sudden burst of urbanisation in India? A 1,483km dedicated freight corridor (DFC) — a high speed, high capacity rail line between Dadri in Uttar Pradesh near Delhi and Mumbai to transport manufactured goods to ports — is the backbone of this project. An area of 150km on each side of this corridor is to be developed as an industrial corridor to give the manufacturing sector a boost and sustain an economic growth rate of 9-10 per cent a year. "Manufacturing needs to be given a fillip and that needs world class infrastructure to enable Indian industry to compete with the best in the world," says Kumar.

The corridor is expected to pull in $90-100 billion worth of investments in the next 30 years, double employment, triple industrial output and quadruple exports from the region over five years. It has several investment regions and industrial areas. "It's a first of its kind, in terms of vision and scale," says Arvind Mahajan, executive director of consulting firm KPMG.

Both the DFC and the DMIC are part of the India-Japan business partnership, with the Prime Ministers of both countries making joint announcements about them in 2005 and 2006 respectively.

The new cities are an offshoot of this industrialisation that's planned. "When you plan for manufacturing, you plan for urbanisation along with it," says Kant. Songdo in South Korea and Suzhou in China have been role models for the DMIC cities.

With the McKinsey Global Institute projecting that 590 million Indians will be living in urban areas by 2030, these new cities could ease the pressure on existing cities, already bursting at the seams. "If we don't build new cities now, we will be fighting unplanned chaos later," says Manish Agarwal, executive director of consulting firm PriceWaterhouseCoopers.

But is it wise to create infrastructure so far ahead of demand? "Infrastructure has to be built proactively, not reactively. We can't wait for roads to be clogged before doing something about it," says Rajiv Lall, managing director and CEO of Infrastructure Development Finance Company.

While there needs to be some perspective planning based on projections, planners must be prepared for demand not materialising as expected, cautions Songsu Choi, lead urban economist at the World Bank. Both China and South Korea have developed greenfield cities, but the latter has had more successes, with Bundang, for example, growing beyond expectations.

Others point out that the DMIC cities are hardly likely to decongest existing ones since they are catering to only an estimated population of 12 million. Says Chetan Vaidya, director of the National Institute of Urban Affairs, "This is not a natural process of urbanisation; this is trying to do something unnatural." Cities don't stop growing because of new settlements, he points out, but for other reasons like lack of economic activity, saturation and non-inclusiveness.

Few satellite towns have been successful in decongesting cities on their own, says architect Hafeez Contractor. Navi Mumbai, he points out, took off only after Mumbai started spilling over. "Major cities have never stopped growing. That is where the employment is," he points out.

"The key to the success of these cities will be economic activity," says Vaidya. Chandigarh, Gandhinagar and Bhubaneswar were state capitals to which people were forced to come to for work. That led to these cities growing, with Chandigarh now boasting of a thriving industrial suburb. Whether the new cities will succeed or not depends on the way industry responds, he points out.

That could be a wild card, considering the DFC — the logic and the USP of the corridor — has been delayed. Kant isn't worried, though. The DFC was one way to connect these investment regions and cities to the rest of the country, he says — but it is not the only way. They are being linked to the national highways and the normal train network. Besides, the delay will not be inordinate, he insists, and will not be a huge damper for investments.

Some think that these cities will end up being little more than the sleepy Bokaros, Rourkelas or Bhilais of the west. However, the planning expert strongly disagrees. The steel cities revolved around one company or set of products, he points out, while the DMIC cities will house the value chain of different industries.

Again, merely building new cities with world-class infrastructure may not be enough. "It is equally critical to have a proper institutional mechanism with world class managers to operate them as cities of the future," says PwC's Agarwal.

Perhaps that's why Kant says: "This needs a different level of thinking and execution." Wait 20 years to see if India can measure up.

http://www.telegraphindia.com/1110925/jsp/7days/story_14551331.jsp



DMIC Maps
Delhi Mumbai Industrial Corridor 

(Maps - Delhi-Mumbai Industrial Corridor)
 
DMIC Map-Uttar Pradesh
DMIC Map-Haryana
DMIC Map-Rajasthan
DMIC Map-Gujarat
DMIC Map-Maharashtra
DMIC Map-Madhya Pradesh
DMIC
Delhi Mumbai Industrial Corridor
DMIC Map
Delhi-Mumbai Industrial Corridor is a mega infra-structure project of USD 90 billion with the financial & technical aids from Japan, covering an overall length of 1483 KMs between the political capital and the business capital of India, i.e. Delhi and Mumbai.

A MOU was signed in December 2006 between Vice Minister, Ministry of Economy, Trade and Industry (METI) of Government of Japan and Secretary, Department of Industrial Policy & Promotion (DIPP). A Final Project Concept was presented to both the Prime Ministers during Premier Abe's visit to India in August 2007. 

Finally Government of India has announced establishing of the Multi-modal High Axle Load Dedicated Freight Corridor (DFC) between Delhi and Mumbai, covering an overall length of 1483 km and passing through the six States - U.P, NCR of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra, with end terminals at Dadri in the National Capital Region of Delhi and Jawaharlal Nehru Port near Mumbai. Distribution of length of the corridor indicates that Rajasthan (39%) and Gujarat (38%) together constitute 77% of the total length of the alignment of freight corridor, followed by Haryana and Maharashtra 10% each and Uttar Pradesh and National Capital Region of Delhi 1.5 % of total length each. This Dedicated Freight Corridor envisages a high-speed connectivity for High Axle Load Wagons (25 Tonne) of Double Stacked Container Trains supported by high power locomotives. The Delhi - Mumbai leg of the Golden Quadrilateral National Highway also runs almost parallel to the Freight Corridor. This corridor will be equipped with an array of infrastructure facilities such as power facilities, rail connectivity to ports en route etc. Approximately 180 million people, 14 percent of the population, will be affected by the corridor's development.


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. 


This high-speed connectivity between Delhi and Mumbai offers immense opportunities for development of an Industrial corridor along the alignment of the connecting infrastructure. 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. The vision for DMIC is to create strong economic base in this band with globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance foreign investments, real-estate investments and attain sustainable development. In addition to the influence region, DMIC would also include development of requisite feeder rail/road connectivity to hinterland/markets and select ports along the western coast.


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) 


Delhi-Mumbai Industrial Corridor is to be conceived as a Model Industrial Corridor of international standards with emphasis on expanding the manufacturing and services base and develop DMIC as the 'Global Manufacturing and Trading Hub'. The Government is considering this ambitious project to establish, promote and facilitate Delhi-Mumbai industrial corridor to augment and create social and physical infrastructure on the route which is world class and will help spurring economic growth of the region.

Integrated Corridor Development Approach for DMIC

High impact/ market driven nodes - integrated Investment Regions (IRs) and Industrial Areas (IAs) have been identified within the corridor to provide transparent and investment friendly facility regimes. These regions are proposed to be self-sustained industrial townships with world-class infrastructure, road and rail connectivity for freight movement to and from ports and logistics hubs, served by domestic/ international air connectivity, reliable power, quality social infrastructure, and provide a globally competitive environment conducive for setting up businesses. An Investment Region (IRs) would be a specifically delineated industrial region with a minimum area of over 200 square kilometers (20,000 hectares), while an Industrial Area (IAs) would be developed with a minimum area of over 100 square kilometers (10,000 hectares). 24 such nodes - 9 IRs and 15 IAs spanning across six states have been identified after wide consultations with the stakeholders i.e the State Governments and the concerned Central Ministries. It is proposed that 6 IR and 6 IAs would be taken up for implementation in the First Phase during 2008-2012 and rest of the development would be phased out in the next 4 years. The nodes identified for Phase-1 are:


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);
http://delhimumbaiindustrialcorridor.com/


• 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 Prdaesh

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

Organizational Structure & Project Implementation Framework:

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