DELHI MUMBAI INDUSTRIAL

CORRIDOR (DMIC)
BY
DHRUBA PURKAYASTHA 2012CEZ8458
SHEBA SUSAN GEORGE 2012CET2226

STRUCTURE
The Concept of Industrial Corridor

DMIC

Institutional Structure And Development Models

Financing Mechanism And Expected Investment

Impact Of DMIC On Manufacturing Sector
INDUSTRIAL CORRIDOR
Cities
DMIC
Emerging landscape of global investment
1483 km Dedicated Freight Corridor with end
terminals at Dadri in NCR Delhi and Jawaharlal
Nehru Port near Mumbai
14% of area, 20% of Indias population, 40-50% of
GDP
GOAL
double employment potential in 7 years
triple industrial output in 9 years and
quadruple exports from the region in 8-9 years
DMIC
Source: Indias Urban Awakening: Building
inclusive cities, sustaining economic growth
-McKinsey Global Institute, April 2010l
DMIC
40% of Indias population will be urban by 2030

DMIC cities will help to meet pressures of
urbanisation and also lead to economic growth


DECENTRALISED REGIONAL DEVELOPMENT
DMIC NODES
Selection Criteria for Investment Region
To ensure at least one such node in each of the DMIC State
to spread economic benefits
Benefit from the proximity to Metropolitan Areas as Delhi,
Mumbai
Potential for Developing Greenfield Ports or Augmentation
Possibilities
Easy Availability of such huge land parcels and established
industrial base
Selection Criteria for Industrial Area
To take advantage of inherent strengths of specific locations
(mineral resources, rich agriculture base, availability of
skilled human resource base, potential for setting up specific
group of industries)
Opportunity to transform under developed regions along the
corridor to developing or well developed regions

NODES FOR PHASE I DEVELOPMENT
DFC Alignment
Investment Region (Min.200SQKM)
Industrial Area (Min.100SQKM)
Haryana
Dadri
J.N.Port
1
c
d
5
4
Rajasthan
Maharashtra
Gujarat
b
e
Madhya
Pradesh
3
2
a
f
6
Haryana
Uttar
Pradesh
NODES FOR PHASE II DEVELOPMENT
DFC Alignment
Investment Region (Min.200SQKM)
Industrial Area (Min.100SQKM)
Dadri
J.N.Port
h
l
k
10
j
7
g
i
Rajasthan
Maharashtra
Gujarat
Madhya
Pradesh
9
m
Haryana
Uttar
Pradesh
11
8
SUSTAINABLE DEVELOPMENT
Polycentric structure with key commercial and
community nodes
Integration of land uses encouraging mixed-use
development
Integration of existing villages into the new city
Focus on efficient infrastructure systems and
renewable energy sources
Conservation of the better agricultural land
Protection of the sensitive natural environment
Phased development programme allowing
incremental growth
MIXED USE DEVELOPMENT
INTEGRATING EXISTING VILLAGES
TRANSIT AND WALKABILITY
PROMOTE GREEN BELT
WORLD CLASS INFRASTRUCTURE
INFRASTRUCTURE PROJECTS REQUIRED
INSTITUTIONAL STRUCTURE
Apex Authority called the DMIC Steering Authority
DMICDC (Delhi Mumbai Industrial Corridor
Development Corporation)
State-level Coordination Entity/ Nodal Agency
Project Specific Entities such as Special Purpose
Vehicles for individual projects
PROJECT IMPLEMENTATION FRAMEWORK
INSTITUTIONAL FRAMEWORK FOR EACH
MANUFACTURING CITY
FINANCING MECHANISM
Through nodal agencies by means of budgetary
provision or
Viability Gap Funding or
long term loans extended to Special Purpose
Vehicles.
Creation of a Project Development Fund (PDF)
Estimated requirement
o project development stage is USD 250 million
o project implementation stage is USD 90 billion
PROCEDURES OF YEN LOAN
MECHANISM OF YEN FINANCING
IMPACT ON MANUFACTURING SECTOR
Indias lack of manufacturing competitiveness
India share at around 1.4% of global trade in
manufactured products
Contribution of Manufacturing to Indias GDP has
remained stagnant at around 17% over the last
many years, whereas it is 53% in China and between
25 -30 % in South East Asia
Government of India (GoI) has created the National
Manufacturing Competitiveness Council (NMCC)
India Manufacturing Strategy paper
National Manufacturing Competitiveness Program
by the Ministry of Micro Small and Medium
Enterprises
IMPACT ON MANUFACTURING SECTOR
New Manufacturing Policy is under development at
the Department of Industrial Promotion and Policy
TARGET is to increase share of manufacturing to
about 25% of GDP
DMIC Project goals
National Manufacturing Investment Zones (NMIZs)

CHALLENGES

Public funding Vs PPP
Monetization of land values
De-politicisation of land values
Detailed Engineering & Programme Management
Technology- Life Cycle cost of technology Vs Life
Institutional System- Governance of new cities
Challenge of Water and Sewage
REFERENCES
Concept Paper on Delhi-Mumbai Industrial Corridor, August
2007, Department of Industrial Policy and Promotion Ministry
of Commerce and Industry, Government of India.
Official Website of Delhi Mumbai Industrial Corridor
Development Corporation http://www.dmicdc.com/
http://delhimumbaiindustrialcorridor.com/financial-analysis-of-
dmic-project.php
Delhi-Mumbai Industrial Corridor, Presentation by Department
of Industrial Policy and Promotion (DIPP), Ministry of
Commerce and Industry Government of India (MoCI).
Delhi Mumbai Industrial Corridor (DMIC) Project Presentation
by Centre for Science and Environment, India.