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 Abes 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 corridors 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 countrys 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.
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);
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:
It is envisaged that a four-tier system, as institutional framework, would be set up for the implementation of DMIC. It constitutes:
An Apex body, headed by the Finance Minister with concerned Central Ministers and Chief Ministers of respective DMIC States as Members for overall guidance, planning, and approvals;
A Corporate entity, Delhi Mumbai Industrial Corridor Development Corporation (DMICDC), specially envisaged to coordinate Project Development, Finance and Implementation, headed by a full time CMD and having representation from the central government, state governments and FIs;
A State-level Coordination Entity/ Nodal Agency responsible for coordination between the DMICDC and various state government entities and the project implementing agencies/ special purpose vehicles.
Project specific special purpose vehicles (SPVs) who would actually implement the projects. These SPVs can be owned by state Governments in terms of governance structure, Board of Directors etc. Some of these SPVs can also be formed by central/state governments and their agencies.
The corridor project likely to be implemented in two phases namely Phase-I & Phase-II. An estimated $90 to $100 billion would be required to create the infrastructure in the first phase of the project. Japanese companies are expected to invest over $10 billion in the proposed corridor during the first phase.