Delhi–Mumbai Industrial Corridor Project


The Delhi–Mumbai Industrial Corridor Project is a planned industrial development project between India's capital, Delhi and its financial hub, Mumbai. The DMIC project was launched in pursuance of an MOU signed between the Government of India and the Government of Japan in December 2006. It is one of the world's largest infrastructure projects with an estimated investment of and is planned as a high-tech industrial zone spread across six states, as well as Delhi, the national capital and itself a Union Territory. The investments will be spread across the 1,500 km long Western Dedicated Freight Corridor which will serve as the industrial corridor's transportation backbone.
It includes 24 industrial regions, eight smart cities, two international airports, five power projects, two mass rapid transit systems, and two logistical hubs. The eight investment regions proposed to be developed in Phase I of DMIC are Dadri - Noida - Ghaziabad, Manesar - Bawal, Khushkhera - Bhiwadi - Neemrana and Jodhpur - Pali - Marwar, Pithampur - Dhar - Mhow, Ahmedabad - Dholera Special Investment Region, and Aurangabad Industrial City and Dighi Port Industrial Area in Maharashtra.
The project has received a major boost from India and Japan, due to an agreement to set up a project development fund with an initial size of. The Japanese and Indian governments are likely to contribute equally. The work is progressing at a rapid pace, with the dedicated freight corridor expected to be completed by 2021.

Background

The genesis of the project goes back to China's preparation for the 2008 Beijing Olympics, which triggered a diversion of India's iron ore exports from Japan to China, in order to feed the increased infrastructure requirements for the then upcoming games. Japan, which was importing large quantities of iron ore from India, was negatively affected as it had to maintain a reliable source of iron ore imports to feed its long-established industrial sector. Efforts to procure ore from alternate sources in India were logistically difficult and not cost effective. This inspired the then Japanese Ambassador to India, to raise the idea of building an efficient freight corridor along the lines of the Tokyo – Osaka corridor.

Benefits & Return on Investment

Investment and financing

Project initially aims for US$100 billion direct investment in this scheme, excluding investment in other associated schemes. Anand Sharma, former minister, from The Ministry of Commerce and Industry had proposed the establishment of a revolving fund with matching contribution from India and Japan to kick-start the implementation process of the Delhi Mumbai Industrial Corridor Project. 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. $4.5 billion was being initially funded by the Japanese government as a loan for a period of 40 years at a nominal interest of 0.1%. 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.

Target businesses and companies

To provide impetus to Make in India, supported by Startup India and Standup India, a total of 24 special investment nodes are conceived to be created by the government, that would support manufacturing, however, any type of industry could be set up. The main role of these hubs is to facilitate businesses, set up their factories quickly without any hiccups in land acquisition and resources, and providing cheap, fast, and efficient transportation to ports and the rest of the nation. The government would play the role of the facilitator to encourage businesses to invest more by providing a "stable environment".

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 project is expected to generate 3 million jobs, largely in manufacturing. The labor availability is approximately 50 million in the immediate influence zone and over 250 million across the states where the project will pass through. There are several high quality and renowned educational institutions across the states such as IIT, IIM, and Birla Institute of Technology and Science. Many more institutes such as Indian Institute of Information Technology are planned along the corridor.

Scope

DMIC will include the development of the 1540 km long Western Dedicated Freight Corridor with 24 nodes, including six large investment regions of 200 square kilometers, and will run through 6 states: Delhi, western Uttar Pradesh, southern Haryana, eastern Rajasthan, eastern Gujarat, and western Maharashtra. Will also have influence zone and nodes in the 7th states of Madhya Pradesh.

Summary by states

, 115 km of WDFC.

Uttar Pradesh

, 22 km of WDFC

Node-1: Dadri-Noida-Ghaziabad Investment Region (DNGIR)

The proposed Dadri-Noida-Ghaziabad Investment Region would be located close to Delhi, the National Capital. This region has good connectivity by road and rail to rest of India. It comprises Noida, the vibrant satellite town of Delhi with IT/ITES and electronics industries; Ghaziabad, the hub of light engineering and electronics industries; and Greater Noida, the city with well developed road network, state of the art physical and social infrastructure with quality residential commercial, recreational and institutional areas. Moreover, a 3500MW power plant is being developed close to Dadri through private sector participation.

Proposed Components

. Export-oriented Industrial Units/ SEZ:
North Western Uttar Pradesh i.e. the Dadri-Noida-Ghaziabad belt is proficient at manufacture of engineering, electronics, and leather and textile goods. A large industrial park would give a boost to the production and export of these items.
. Augmentation of Existing Industrial Estates:
With a focus on expansion of industrial activities, creation of supporting infrastructure and facilitate further investments in the sector to develop a mega industrial zone. It is proposed to augment two industrial estates in Ghaziabad.
. Agro/Food Processing Zone:
Considering the large agricultural output from the Western Uttar Pradesh, an integrated agro/food processing zone is proposed in this region.
. IT/ITES/Biotech Hub:
Noida/Greater Noida is ably competing with Gurgaon as the preferred location for IT/ITES companies desirous of setting up/expanding their operations. Biotechnology is an upcoming industry sector that needs to be given thrust in the DMIC area.
. Knowledge Hub/Skill Development Centre:
To support the IT/ITES/Biotech Hubs as well as the other industries in the investment region, a Knowledge Hub/skill up gradation centre would be imperative. It is advisable to set it up in this area, which is close to the National Capital Region and has a substantial "trainable" population. Potential sectors could include Agro Processing, Engineering, Leather/ Handicraft and IT/ITES/Biotechnology sectors.
. Integrated Logistics Hub:
Expansion of the existing Inland Container Depot at Dadri and establishment of a Logistic Park have been proposed.
. Integrated Township:
This region would be provided with an integrated township with residential, institutional, commercial and leisure/recreation infrastructure which could be dovetailed to requirements of specific investor groups/ countries.
. Feeder Road Links:
It is important to note that widening and strengthening of National Highways is being undertaken by the National Highways Authority of India. Based on the detailed feasibility study for the node, relevant augmentation measures for National Highways could be put forward to the NHAI for approvals. However, development of Regional linkages connecting the identified investment region with NHDP corridors, DFC and Hinterland is the prerogative of the state government. However, based on the preliminary assessment, development of the following linkages is envisaged:
- Providing linkage to NH-24 and NH-58.
- Augmentation of State Highway connecting Ghaziabad-Aligarh-Agra.
- Connectivity to Greater Noida/Delhi and Faridabad/NH2 and to Faridabad-Noida-Ghaziabad and Kundli-Ghaziabad Expressways.
- Development of requisite grade separators/flyovers/interchanges and underpasses along the National Highways/ State Highways and access roads for uninterrupted freight and passenger movement to the region would also be included in the development of feeder links.
. Feeder Rail Links:
- Linkage to/from container terminal and with Western DFC at Dadri.
- Augmentation of Meerut-Dadri-Ghaziabad, Ghaziabad-Aligarh-Hathras route.
- Development of Feeder Rail links also includes construction of underpasses wherever required so as to avoid level crossings.
- Development of Regional MRTS network between Ghaziabad, Noida and proposed Greater Noida International Airport at Jewar as well as between Greater Noida International Airport and Palwal/Faridabad.

Node-2: Meerut-Muzaffarnagar Industrial Area (MMIA)

The proposed Meerut-Muzaffarnagar Industrial Area would be located at a distance of 100 to 150km from Delhi, the National Capital. This region has good connectivity by road and rail to rest of the State and India
Proposed Components:
. Export-oriented Industrial Units/ SEZ:
Meerut-Muzaffarnagar belt is proficient at manufacture of engineering units, sports goods etc. An industrial park with well-developed amenities and modern infrastructure would give a boost to the production and export of these items.
. Augmentation of Existing Industrial Estates:
With a focus on expansion of industrial activities, creation of supporting infrastructure and facilitate further investments in the sector to develop a mega industrial zone. It is proposed to augment two industrial estates in Meerut and Muzaffarnagar
. Agro/Food Processing Zone:
Considering the large agricultural output from the Western Uttar Pradesh with respect to Mangoes, Potatoes, Basmati Rice, an integrated agro/food processing zone with backward and forward linkages is proposed for development near Hapur as value addition to the agricultural output from the state.
. Truck Terminal with Warehousing Facility:
Taking advantage of connectivity being offered by the feeder road and rail linkages for the region, a truck terminal with warehousing, truck parking/servicing facilities is proposed.
. Integrated Township:
This region would be provided with an integrated township with residential, institutional, commercial and leisure/recreation infrastructure which could be dovetailed to requirements of specific investor groups/ countries.
. Feeder Road Links:
Based on the preliminary assessment development of the following linkages is envisaged for the industrial area:
- Augmentation of NH-58 to Fourlanes in the earliest timeframe
- Ensuring high-speed linkage between Industrial Area and NH-58.
- Provision of Expressway Connectivity between Meerut, Muzaffarnagar, Greater Noida and Delhi
- Augmentation of other state highways & development of missing links
- Development of requisite grade separators/flyovers/interchanges and underpasses along the National Highways/ State Highways and access roads for uninterrupted freight and passenger movement to the region would also be included in the development of feeder links.
. Feeder Rail Links:
- Linkage to/from container terminal at Dadri.
- Linkage to Western DFC at Tughlakabad and Eastern DFC at Dadri
- Augmentation of Delhi-Meerut-Saharanpur Link.
- Development of Feeder Rail links also includes construction of underpasses wherever required so as to avoid level crossings.

Haryana

, 130 km of WDFC and 66% of the state is in influence area of DMIC zone, will have two investment regions and two industrial areas

Node No.3: Faridabad-Palwal Industrial Area (FPIA)

Will be developed in subsequent phases in Faridabad district and Palwal district

Node No.4: Rewari-Hisar Industrial Area (RHIA)

Node No.4: Rewari-Hisar Industrial Area will be developed in subsequent phases in Rewari district and Hisar.
Will be developed in subsequent phases in Sonepat district
will be developed in Phase I during 2014-2017
, 553 km of WDFC and 58% of the state is in influence area of DMIC zone, will have two investment regions and three industrial areas

Node No.7: Khushkhera-Bhiwadi-Kutina,Ghiloth,Neemrana Investment Region (KBNIR)

includes Bhiwadi Dry Port at Bhiwadi

Node No.8: Jaipur-Dausa Industrial Area (JDIA)

across Jaipur district and Dausa district

Node No.9: Ajmer-Kishangarh Investment Region (AKIR)

across Ajmer district and Kishangarh district

Node No.10: Rajsamand-Bhilwara Industrial Area (RBIA)

across Rajsamand district and Bhilwara district

Node No.11: Pali-Marwar Industrial Area (JPMIA)

across Jodhpur district, Pali district and Marwar district

[Gujarat]

565 km

Node No.12: Ahmedabad-Dholera Investment Region (ADIR)

Dholera is part of Phase-I under implementation.

Node No.13: Vadodara-Ankleshwar Industrial Area (VAIA)

Node No.14: Bharuch-Dahej Investment Region (BDIR)

Node No.15: Surat-Navsari Industrial Area (SNIA)

Node No.16: Valsad-Umbergaon Industrial Area (VUIA)

[Maharashtra]

150 km of WDFC and 18% of the state is in influence area of DMIC zone

Node No.17: [Dhule]-Nardhana Investment Region (DNIR)

Includes the Aurangabad Industrial City in Aurangabad. At Shendra and Bidkin, already allotted 35 plots, where Korean player Hyosung is setting up a spandex unit for Rs 3,000 crore.

Node No.18: Igatpuri-Nashik-Sinnar Investment Region (INSIR)

3,500 hectares for land acquisition for the industries on the stretch between Sinnar and Igatpuri. Property rates gradually increases in this region.

Node No.19: Pune-Khed Industrial Area (PKIA)

Node No.20: Dighi Industrial Area & Port (DIAP)

Madhya Pradesh

, zero length of WDFC and 1% of the state is in influence area of DMIC zone

Node No.21: Neemach-Nayagaon Industrial Area (NNIA)

The Proposed Industrial Area at Neemuch-Nayagaon would be located towards east of the alignment of Dedicated Freight Corridor and within the Project Influence Area. Located in the Malwa plateau of Madhya Pradesh with fertile medium & deep soils, this region is part of the major agricultural production base for Potato, Jowar and Wheat crops. It is important to note that this industrial area would be located close to Mandsaur district, renowned for large production of opium compared to rest of the world.

Node No.22: Shajapur-Dewas Industrial Area (SDIA)

The Government of Madhya Pradesh has allotted 1,200 acres of land, for the development of Vikramaditya Knowledge City near Ujjain. The city will be mainly used as an education sector and will be a part of the ambitious Delhi Mumbai Industrial Corridor project. The city will come up near Narwar village on Dewas-Ujjain Road.

Node No.23: Ratlam-Nagda Investment Region (RNIR)

Node No.24: [Pithampur]-Dhar-Mhow (Indore) Investment Region (PDMIR) (DMICDC)

DMIC Infrastructure

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

Energy

In order to meet energy demands of the expected growth along the corridor, the Government of India predicted a need of at least 100,000 MW by 2012. To help meet this number the DMIC will be building power plants that provide around 4000 MW each. While the final number of power plants to be built is still unknown the DMIC plans on powering them with Coal, Gas, and Lignite.

Sewage and water treatment

Due to Singapore's successful water management system, India has brought in six Singaporean consultants, one is Jurong International, to draw up plans for the new cities involved.

DMIC Connectivity

Ports: exports and logistics

Three Sagarmala ports CEZs

Out of 14 Sagarmala mega Costal Economic Zones ports projects, three of these mega CEZs fall in DMIC corridor. Each CEZ with the area of 2,000 to 3000 km2 will have several Costal Economic Units, and in turn each CEU will have several Port-Linked Industrial Clusters. "Costal Economic Units" serve as nodes within CEZ, each CEU industrial is an industrial estates with multiple industries. Each "Port-Linked Industrial Clusters" within CEU will have several manufacturing units.
Linked to Port Pipavav and Sikka port, is stretched across Junagarh, Amreli and Bhavnagar to Ahmedabad districts in Gujrat.
Linked to Dahej port and Hazira Port, is stretched from Bharuch, Surat and Navsari to Valsad districts in Gujarat.
Linked to Jawaharlal Nehru Port and Mumbai Port Trust, is stretched from Nashik, Thane, Mumbai and Pune to Raigarh districts in Maharashtra.
Benefits include national GDP growth with ease of doing business by boosting export by US$100 billion, 150,000 job creation by 2025, reduction in export cargo logistics cost and time, and increased global competitiveness of Indian exports. 60 million Small and medium-sized enterprises in India contribute 90% to total national industrial production, and he foreign trade policy aims to increase share of exports in world currently ) from under 2 to 3.5%. 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. Port projects worth $2.3 billion are currently in progress for the upgrade of capacity from 963 million tons in 2010 to 3.1 billion tons 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.
Costal Economic Zones is a component of sagarmala scheme aimed at port-led industrial development of 14 business-friendly Coastal Economic Zones with the investment of, centered around ports in India spread across national coastline of 7,500 km, by using Make in India indigenous manufacturing scheme. Sectors targeted for manufacturing units are maritime and inland waterways, water transport, coastal and cruise shipping, and solar and wind energy generation, auto, telecom and IT, etc. Each CEZ will cover economic region consisting of several coastal districts with strong linkage to the ports in that region. Each CEZs will also create synergy with industrial corridors passing through the region, such as Delhi–Mumbai Industrial Corridor Project, Mumbai-Bangalore economic corridor, Dedicated Freight Corridor, Chennai Bangalore Industrial Corridor, Visakhapatnam–Chennai Industrial Corridor and Amritsar Delhi Kolkata Industrial Corridor, etc.

Dry inland ports

Dadri logistics hub and port in UP
Nangal Chaudhary logistics hub and port in Haryana
Integrated Multimodel Logistics Hub, Nangal Chaudhary, 1,100 acre US$3.3. billion project is part of Delhi–Mumbai Industrial Corridor Project on Western Dedicated Freight Corridor, that is on track to be completed on time by December 2017. Among such investors, Dr. B. Ravi Pillai, owner of RP Group and the richest Indian billionaire in Dubai and Middle East which employ over 70,000 employees, offered to CM of Haryana in December 2017 to invest in logistics company in Integrated Multimodel Logistics Hub, Nangal Chaudhary and in Prime Minister's Housing for All low-cost urban housing in 3 Industrial Model Townships along Delhi Western Peripheral Expressway in IMT Bahadurgarh, IMT Kundli, Sonipat and IMT Manesar with construction to be completed within 1 year.
Bhiwadi logistics hub and port in Rajasthan
The Government of Rajasthan has proposed the establishment of 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, recommend the facilities, 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 the coordination of the input of a large project staff and on-time completion. The final report was reviewed, edited, and provided specialist advice on the organization and marketing considerations in the containerized transportation industry.
The facility, to be constructed at a cost of, is expected to function as an enhanced container freight station with facilities like container yards, transit sheds, warehouses, railway sidings, and truck parking. The port will be complemented with modern cargo-handling equipment with special functions like the mechanized filling of containers. The port will concentrate on containerized cargo. The transfer of bulk and break bulk will be expensive at the dry port. The detailed project report for Phase I of the project were completed in September 2001.
Acquisition of land, will be expedited by the Rajasthan State Industrial Development and Investment Corporation. 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 in the current decade, mainly on development and expansion of ports.

Rail connectivity

Dedicated Freight Corridor">Dedicated Freight Corridor Corporation of India">Dedicated Freight Corridors

DMIC runs along Western Dedicated Freight Corridor and it intersects with Eastern Dedicated Freight Corridor in north at Dadri in UP. WDFC is 2,700 km long and it also has an additional 5,000 km of feeder lines connecting Mumbai to West Bengal. This dedicated freight corridor will offer high-speed connectivity for high axle load wagons of double stacked containers supported by high power locomotives. The Delhi-Mumbai leg of the Golden Quadrilateral National Highway will run almost parallel to the freight corridor. The central spine across the DMIC corridor is the railway connected via the Western Dedicated Freight Corridor.

New rail connectivity with [Sagarmala] ports SEZs

To boost export, several billion investment is planned for creating mega SEZs and for connecting seaports in India to rail network in India.

Rapid Rail Transport System (RRTS)

Some of the RRTS in NCR fall in DMIC zone, as listed below:
Gurugram (BRT)
Much like Delhi, Gurugram too will have a bus rapid transit corridor to decongest traffic on the Northern Peripheral Road. In several sections, the NPR will have provisions for the BRT corridor to ensure smooth flow of traffic. The road will be fully developed in March 2012.
Ahmedabad (BRT)
is already operational.

Progress of three phases of implementation

Implementation will be done in three phases.
PhaseStart DateCompletion DateInvestmentProjectsNotes
Phase-I2025INR 15,500 crore1. Aurangabad Industrial City in Maharashtra Rs 8,000 crore,
2. Dholera in Gujarat for Rs 4,700 crore,
3. Vikram Udyogpuri in Ujjain for Rs 1,300 crore,
4. IIT Greater Noida for Rs 1,500 crore.		These already-awarded 4 projects are under construction.
Phase-II20182032INR 10,200 crore2 Multi-modal logistic hubs:
Greater Noida Rs 4,800 crore,
Haryana Rs 5,400 crore.		These 2 projects will be awarded by June 2018.
Phase-III2037Rajasthan on track to acquire 3,500 acre notified in 2012.
Total2037US$90 billion'