Delhi Mumbai Industrial Corridor Project

Location of Delhi and Mumbai within India

The Delhi-Mumbai Industrial Corridor Project is a planned State-Sponsored Industrial Development Project of the Government of India. It is one of the world's biggest infrastructure projects with an estimated investment of US$90 billion, and is planned as a hi-tech industrial zone spread across seven states along the 1,500 km long Western Dedicated Freight Corridor which serves as its backbone.[1]

It includes 24 industrial regions, eight smart cities, two airports, five power projects, two mass rapid transit systems and two logistical hubs.[1] The eight investment regions proposed to be developed in Phase I of DMIC are Dadri-Noida-Ghaziabad (in UP); Manesar- Bawal (in Haryana); Khushkhera-Bhiwadi-Neemrana and Jodhpur- Pali-Marwar (in Rajasthan); Pithampur-Dhar-Mhow (in MP); Ahmedabad-Dholera Special Investment Region (SIR) in Gujarat; the Shendra-Bidkin Industrial Park and Dighi Port Industrial Area in Maharashtra.[1]

India needs to employ over 100 million people within the next decade and so this project assumes vital importance to develop manufacturing centres that could employ millions.

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 ₹10 billion (US$148.6 million). Both the Japanese and Indian governments contribute equally. The work is already underway and progressing at a rapid pace, with the Dedicated Freight Corridor expected to be completed by 2017.

Financing

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 90 billion Delhi Mumbai Industrial Corridor Project.[2] 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. 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.

Ease of doing business

A total of 24 special investment nodes are envisaged to be created by the government that would support manufacturing but any type of industry could be set up. The main role of these hubs are to facilitate businesses, set up their factories quickly without any hiccups in land acquisition and resources plus providing cheap, fast and efficient transportation to ports and the whole nation. The government would play a role as a facilitator to encourage businesses to invest more by providing a "stable environment".

States

The project would include six mega investment regions of 200 square kilometres 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. Length of western DFC:- 1535-km

Length of Corridor and Statewise Distribution

This Dedicated Freight Corridor offers high-speed connectivity for High Axle Load Wagons (25 Tonne) of Double Stacked Container supported by high power locomotives. The Delhi- Mumbai leg of the Golden Quadrilateral National Highway also runs almost parallel to the Freight Corridor. The central backbone spine of across the DMIC corridor is railway connectivity via Western Dedicated Freight Corridor.[3]

DMIC will cover the development of 1540 km long Western Dedicated Freight Corridor (WDFC) with 24 nodes (Investment Regions and Industrial Areas) across seven states:

Employment

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 availability of labour resource is at approximately 50+ million in the immediate influence zone and 250+ million across the states where this project passes through. There are several high quality and renowned educational institutions across the states such as IIT, IIM, Birla Institute of Technology and Science and many more institutes such as Indian Institute of Information Technology are planned along corridor.

Northern Peripheral Road

Northern Peripheral 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 Northern Peripheral Road 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 (project has now been abandoned) besides the Garhi Harsaru dry depot.[11]

Infrastructure

India has often lacked in building quality infrastructure to support the economy. This project aims to leapfrog India in building high quality Infrastructure to make businesses cost competitive in the global market by using advanced technologies and planning just like the Golden Quadrilateral project.

It will include a 4000 MW power plant, three seaports and six airports in addition to connectivity with the existing ports.

Energy

In order to meet energy demands of the expected growth along the corridor the Government of India predicts needing at least 100,000 MW by 2012 to help meet this number the DCMI willing be building powerplants that provide around 4000 MW each. While the final number of power plants to be built is still unknown the DMIC plans on power them with Coal, Gas and Lignite.[12]

Cities

India is urbanising rapidly with 40.76% of Indians, expected to be living in Urban areas by 2030 from 31.16% in 2011. This ongoing process of urbanisation would create huge stress in the current existing cities which are already unable to support the rapid growth under poor infrastructure support. In some cases existing urban centres may also face environmental or physical constrictions (such as Mumbai) in ability to expand. In the current scenario, this would prove to be an impediment to India's continuing economic growth. One of the main goals of this mega project would be the development of numerous new cities to create new centres of economic activity in the country. These new globally benchmarked cities aim would be superior to the existing cities in terms of infrastructure, planning, city management and services.

Some of the big notable cities are already in various stages of development such as Gujarat International Finance Tec-City, Dholera SIR and a Vikram Udyog Nagari near Ujjain.

Knowledge City

Government of Madhya Pradesh has alloted 1,200 acres of for the development of Knowledge City near Ujjain which will know as Vikramiditya Knowledge City. The city will be mainly used for education sector and is a part of ambitious Delhi Mumbai Industrial Corridor project. Th city will come up near Narwar village on Dewas-Ujjain Road.[13][14]

Port

As such, the Government of Rajasthan proposed to establish a Dry port facility at Rabhana, Near Bhiwadi in Rajasthan to service trade in and around the state. The objective of the consultancy services was to establish project viability, evaluate the alternate sites and recommend the facilities and details of the infrastructure and services to be provided, and conduct a detailed study/analysis of its technical, social, economic and financial viability. The project ensures coordination of the input of a large project staff, and completion within schedule. It is reviewed and edited the final report and provided specialist advice on the organization and marketing considerations in the containerized transportation industry.

The facility, to be constructed at a cost of Rs 2 billion, is expected to function as an enhanced Container Freight Station (CFS) with facilities like container yards, transit sheds, warehouses, railway sidings and truck parking. The port would be complemented with modern cargo-handling equipment with functions like stuffing of containers being mechanized. The port will concentrate on containerized cargo. The transfer of bulk and break bulk would prove expensive at the dry port. The detailed project report for Phase I of the project was completed in September 2001.

Acquisition of land, though yet to commence, will be expedited by Rajasthan State Industrial Development and Investment Corporation (RIICO). Construction work is scheduled to commence in early 2003. The World Bank has agreed to provide funds for the BOT project. The Indian port sector is going through a major transformation with the Government of India planning to spend around 2.7 trillion ($60 billion) in the current decade, mainly on development and expansion of ports.

Initially, by March 2017, India has planned public and private investment of 342 billion ($7.6 billion) to create seven new ports as part of the country's drive to triple its merchandise exports. According to the Ministry of Shipping, India aims to triple its merchandise exports from $225 billion in 2010 to $750 billion by 2017.

However, growth has been constrained by inadequate investment in port infrastructure. Cargo handling at many of the country's ports is painfully slow compared to major ports elsewhere in Asia. At present, port projects worth $2.3 billion are currently in progress for up-gradation of capacity from 963 million tons in 2010 to 3.1 billion tones in a few years. Much of this expansion will depend on private sector investment, particularly from major terminal operators like DP World and APM Terminals who already have a presence in India.

Much like Delhi, Gurgaon too will have a Bus rapid transit (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.[15]

References

External links

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