• Posted on: 1 March 2016
  • By: admin

  

Delhi - Mumbai Industrial Corridor (DMIC) is India's most ambitious Infrastructure programme aiming to develop new industrial cities as "Smart Cities" and converging next generation technologies across infrastructure sectors. The objective is to expand India's manufacturing and services base and develop DMIC as a "Global Manufacturing and Trading Hub".

 

Vision for DMIC

The vision for DMIC is 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. 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’.

 

 

In the first phase seven new industrial cities are being developed. The programme has been conceptualized in partnership and collaboration with Government of Japan.


Delhi-Mumbai Dedicated Freight Corridor The envisaged alignment of freight corridor passes through six states Uttar Pradesh, NCR of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra and is mostly aligned parallel to the existing railway tracks. 


DMIC in Maharashtra

Raigad has significant potential for growth in a number of existing and upcoming manufacturing sectors. 

Raigad District is already an established location for heavy industries- chemicals and chemical products, basic metals and alloy industries and rubber, plastics, petroleum and coal products. 

Raigad will be the distinct manufacturing hub for heavy industries merged with technologies and innovative systems— eco-industrial park systems and green industries. 

It will be the innovative green city within the state. The industrial location is strategically positioned and directly connected to the major state highway NH 17, and the Konkan rail network.


The Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) plans to develop several 100-square kilometres to 200-square-kilometre investment regions/industrial areas. One of the investment regions identified is in the Dighi Port Industrial Area (Dighi Port IA or DPIA). New and innovative, world-class Greenfield townships—new cities—will be developed within this investment region.


An MOU relating to the DMIC has been signed between the Ministry of Economy, Trade and Industry (METI) of Japan and the Ministry of Commerce and Industry (MoCI) of India to explore the opportunities for mutual cooperation. MoCI has further initiated the process by appointing M/s IL&FS Infrastructure Development Corporation Limited (IIDC), New Delhi as Consultant for preparation of conceptual framework for DMIC.

 

Project Influence Area (PIA) for DMIC comprises of 436,486Sqkm area, which constitutes 13.8% of geographical area of overall India. Project influence area for DMIC comprises of a combined population of 178 Million constituting approximately 17% of total population of the country. DMIC states contribute 50% of agricultural produce of principal crops of the country and 60% of overall exports from the country. Project influence area comprises of ten major cities with over 1 Million population viz. Delhi, Greater Mumbai, Faridabad, Meerut, Jaipur, Ahmedabad, Surat, Vadodara, Pune and Nashik as well as six cities with a population of 0.5 to 1 Million viz. Ghaziabad, Aligarh, Jodhpur, Ajmer, Bhavnagar and Bhiwandi.


In Maharashtra  total are under Project Impacted is 56,760sq. Km which is 18% of State area, including Pune, Nashik, Raigad, Thane and Mumbai.


                                                AURIC | DIGHI


Integrated Corridor Development Approach for DMIC:

High impact/ market driven nodes are proposed to be identified along the corridor to provide transparent and investment friendly policy/facility regimes under which integrated Investment Regions (IRs) and Industrial Areas (IAs) would be set up. 


Dighi is well connected by both road and rail services. Dighi is served by NH-17 and by State Highways 92, 95, 96, 97 and 98 (SH-92, SH-95, SH-96, SH-97 and SH-98) NH-17 connects Dighi to Mumbai in the north and Goa in the south correspondingly, it also connects Dighi with other major port cities of southern India and NH-17 is the major link that takes traffic from all major ports that lie on the west coast. The State Highways also connect Dighi Port IA with the western parts of Maharashtra via NH-17.


Dighi Port IA is connected by the Konkan railway and the nearest railway lines are Indapur and Mangaon. The Roha-Pen link which is solely for goods movement is also near Dighi Port IA. In terms of air connectivity, Dighi Port IA is not well connected; the nearest airports are in Mumbai and Pune. AECOM has recommended a conceptual transportation system evaluating internal circulation, external access, and internal road layouts at the district level. The road circulation proposed provides for safe, convenient, and efficient movement of people and goods integrated into a motorised and non-motorised transport system following a hierarchy of road networks. 

 

Economic Development Statergy

The Dighi Port Industrial Area (Dighi Port IA) will be an important industrial, commercial town and logistics node within the state of Maharashtra, the entire Delhi Mumbai Industrial Corridor. The following development strategies have been identified:

 Build on Maharashtra’s strengths in industry.

 Attract foreign and domestic investment for economic development.

 Balance growth in the service sector.

 Generate export revenues and substitute for manufactured imports.

 Link industrial development with commercial, residential, and social development.

 Provide a program for smart phased development with positive economic returns.


The Dighi Port IA will be developed as a new industrial and integrated township enclave, according to a comprehensive land use framework following international standards. The Dighi Port IA will offer ample real estate, parks and open space, public transportation, pedestrian and bicycle trails, and other amenities. This new industrial area will extend from the new Dighi Port IA from the east to the west crossing NH 17. Located in Dighi Port IA, just 10–15 kilometres (km) from Roha and about 15-20 kilometres from Panvel, it is located along Indapur, Mangaon, Ville villages. 


Investment

Estimated land acquisition costs come to INR 7,500 crores. Based on estimates, total capital expenditures for infrastructure for Phase 1 (2022) are INR 4,043 crores; for Phase 2 (2032), INR 7,083 crores; and for Phase 3 (2042), INR 15,637 crores. Phase 3 has the highest capital expenditure requirement. AECOM’s block cost estimates for capital expenditures across all three phases is INR 26,762 crores. 

The land sales strategy is that Phase 1 extends from 2012 to 2022, Phase 2 from 2022 to 2032, and Phase 3 from 2032 to 2042. Land acquisition is assumed to be typically three years ahead of each Phase.


AECOM’s cash flow results reveal that approximately 54% of projects will be public/private partnerships (PPPs) and the rest will be non-PPP projects. The assumption is that for PPP projects, the private sector will get additional viability gap funding of 20%.


The land sales strategy is that Phase 1 extends from 2012 to 2022, Phase 2 from 2022 to 2032, and Phase 3 from 2032 to 2042. Land acquisition is assumed to be typically three years ahead of each Phase.

With projects assumed as PPP, the total capital expenditure for infrastructure required for Phase 1goes down to INR 1,885 crores from the previous estimate of INR 4,043 crores. This can be fully covered by the Government of India fund of INR 2,500 crores (equivalent to 69% of the fund available). The cost of Phase 1 land acquisition of INR 1,001 crores would be funded by the State Government to cover land acquisition and form its equity participation in the development of the Dighi Port IA.


As such, total equity contribution from the Government of India is INR 2,500 crores, equivalent to 69%, and the Government of Maharashtra (MIDC)l contributing 31% or approximately INR 1,147 crores (adjusted with inflation). With a debt-equity ratio of 2, the total debt assumed is INR 9,804 crores.


The sale of the land will be the primary source of revenue and debt servicing, which will start from the 4th year of the project cycle (i.e., 2015) and end by 2023. Based on revenue assumptions, approximately 52% of the land is considered purely saleable for industrial, residential, commercial, and civic uses. Total saleable land goes up to 74% when sales of land for roads, utilities, and open space to the private sector are considered.


Approximately 21% of saleable land will be disposed of by Phase 1 (2022), 33% by Phase 2 (2032), and 46% by Phase 3 (2042). Sales from Phase 1 is expected to generate a cash surplus enough to cover additional land acquisition for Phase 2 and Phase 3. The highest closing balance estimated in 2042 is INR 7,074 crores given the higher land premiums by then. By 2042, there will be a net cashflow of INR 4,748 crores. Overall, the project can expect an IRR of 18% over the plan period of 2012-2042.


 Land Use Summary

Raigad’s urban population is expected to grow from 700 thousand to over 3.5 million over 30 years. The Dighi Port IA will be a major urban centre, and total population in the Raigad District will reach 7.2 million by 2042. Projected industrial activities at the Dighi Port IA are expected to generate 367,430 direct industrial jobs (57% of the district’s total industrial jobs created in 30 years) and close to a million jobs in total. These numbers have already excluded heavily polluting industries. There will be three major industrial clusters—the Engineering Cluster, Heavy Industry Cluster and Food Park/Food Processing Park—for a total industrial land demand of 12,020 hectares (ha)


 

Phase I       

Phase II

Phase III

%

 

 2011-2022 

2023-2032

2033-2042

 

Population (3 years ahead)

382,912

1,001,920

1,984,000

 

Sale-able Land Area (Ha.)

 

 

 

 

R1. Low Density Residential

180

470

940 4%

4%

R2. Medium Density Residential

240

240

1,230

5%

R3. High Density Residential

50

130

250

1%

R4. Industrial Housing Residential

60

150

300

1%

Mixed Use (Resi w/ Commercial)

100

280

560

2%

Civic Facilities (Prototype Level)

110

300

590

2%

Civic Facilities (District Level)

70

230

430

2%

C1. Office, R&D Park

20

70

180

1%

C2. Commercial Districts (CBD/Gov't Ctr)

20

 

50

100

0.4%

C3. Shopping Center Retail

4

15

40

0.2%

Subtotal Sale-able Non- Industrial Land Area

850

2,320

4,620

 

18%

Plus: Sale-able Industrial Land Area

1,970

4,720

8,440

34%

Total Sale-able Land Area

2,820

7,040

13,000

52%

Non-Sale-able Land Area (Ha.)

 

 

 

 

Non-Industrial Internal Roads & Open Space

360

990

1,980

8%

Industrial Internal Roads & Open Space

850

2,020

3,610

14%

Plus: Developed Open Space (1)

600

1,490

2,760

11%

Plus: Masterplan Roads and Utilities

800

1,980

3,670

15%

Total Non-Sale-able Land Area

2,610

6,480

12,000

48%

Total Land Area (Ha.)

5,400

13,500

25,000

100%