Background: DMIC Project
● DMIC Project was conceived as a symbol of Indo-Japan strategic partnership in December,2006.
● A Memorandum of Understanding (MOU) was signed between Ministry of Commerce &Industry, Government of India (MoC&I) and the Ministry of Economy, Trade and Industry,Government of Japan (METI).
● DMIC Project Outline approved by Government of India in its meeting held on 16th August2007.
● DMIC Project has been envisaged to be developed to a spread of about 150 kms on eithersides of the Western Dedicated Freight Corridor (DFC) which acts as a backbone for theDMIC Project. However, the key factor for identification of the nodes being taken up fordevelopment is the availability of land in each of the six (6) States.
● The Financial and Institutional Structure of DMIC Project was approved by Government ofIndia in its meeting held on 15th September, 2011. DMIC Project Implementation TrustFund (DMIC Trust) was formed on 27th September, 2012 with the execution of Trust Deed.
● GoI will provide grant-in-aid of Rs. 17500 crore for the development of Industrial Cities @2500 crore per city on an average subject to a ceiling of Rs. 3000 crore per city.
● An additional grant of Rs. 1000 crore would be given to Trust for passing on to DMICDC asgrant in aid for project development activities.
Background: DMIC Project
● Adoption of Smart City Principles
● For each DMIC City, a Digital/ Information and Communication Technology (ICT)master plan has been prepared in addition to the physical master plan;
● The Digital Master Plan has been dovetailed with the Physical Master Plan from theinitial stages to ensure integration of utilities;
● ICT consultant is being appointed for preparation of Bills of Quantities (BoQs) forvarious hardware and software requirements, specifications, Service LevelAgreements (SLAs), Work Level Agreements (WLAs) etc. and assistance in selectionof Master System Integrators (MSI) or Multiple System Integrators (SIs).
● National Investment and Manufacturing Zones (NIMZs)
● All DMIC Cities being taken up in the Phase 1 have been ‘in principle’ notified asNIMZs under the National Manufacturing Policy (NMP);
● Benefits under the National Manufacturing Policy will also be applicable to thesecities.
DMICDC
DFC Alignment
Existing Passenger Rail Link
N-S & E-W NH
N.H.8 – G.Q
8 Nodes being developed in DMIC in Phase 1
1 Dadri – Noida Ghaziabad IR, UP
2 Manesar – Bawal IR, Haryana
3 Neemrana – Khushkhera – BhiwadiIR, Rajasthan
4 Pithampur- Dhar - Mhow IR, MP
5 Ahmedabad – Dholera IR, Gujarat
6 Nashik– Sinnar – Igatpuri IR,Maharashtra
7 Dighi Port IA, Maharashtra
8 Jodhpur Pali Marwar IndustrialArea
7
5
6
4
1
3
8
2
DMICDC
Node ConsultantsArea (sq.
km)
Ahmedabad-Dholera Investment Region,Gujarat
Consortium led by M/s Halcrow,UK
920
Manesar-Bawal Investment Region,Haryana
Consortium led by M/s Jurong,Singapore
402
Khushkhera-Bhiwadi-NeemranaInvestment Region, Rajasthan
Consortium led by M/s KuiperCompagnons, Holland
165
Pithampur-Dhar-Mhow InvestmentRegion, Madhya Pradesh
Consortium led by M/s LeaAssociates South Asia
372.4
Dadri-Noida-Ghaziabad InvestmentRegion, Uttar Pradesh
Consortium led by M/s Halcrow,UK
200
Dighi Port Industrial Area,Maharashtra
M/s AECOM, Hong Kong 253
Shendra Bidkin Industrial ParkMaharashtra
M/s AECOM, Hong Kong 84
Jodhpur Pali Marwar Industrial AreaRajasthan
M/s Parsons 155
Best practices in Master Planning being brought in throughinternational consultants
Integrated Structure: DMIC Project
ProjectDevelopment
Activities
InstitutionalFramework
Approvals/Decisions
Institutional & Financing Structure approved by the Cabinet
DMIC ProjectImplementation Revolving
Fund
State Govt.
Land
Debt Service
DMIC Investment NodeNodal/ City Level SPV
GoI Capital Grant, leveragedthrough Infra Bonds, Multilaterals
State ApexAuthority
(Chaired by CM)
DMIC Apex Authority at GoI(chaired by FM)
InfraProject
SPV
InfraProject
SPV
InfraProject
SPV
NonPPPableProjects
Board ofTrustees
Debt
(Knowledge Partner toDMICDC
(Knowledge Partner tothe Fund)
Equity
Power Holding Co.
Transport Holding Co.
Logistics Holding Co
Water Holding Co.
SPV 1
SPV 2
SPV 3
SPV 1
SPV 2
SPV 3
SPV 1
SPV 2
SPV 3
SPV 1
SPV 2
SPV 3
PPP-able Infra Projects
Infra SPV
Infra SPV
Infra SPV
Equity / Debt
Eq
uit
y/D
eb
t
IndividualProject SPVs
Timelines: DMIC Project
2008 -2009
2010 -2012
2013 2014 2015 2016 - 2019
Identification of nodes to betaken up in the Ph-1
Master Planning ofidentified Nodes.
Pre-feasibility & Feasibilitystudy for Early bird Projects,
Issuance of ToR for seekingenvironment clearance for the
nodes
Identification of Multi ModalLogistic Hub locations in each of
the nodes
Environment Impact Studies andobtaining Environment Clearance
Techno Economic FeasibilityStudy
Preparation of ICT Master Plan
PerspectivePlan
Project Development Activities
Preliminary/ detailed design fornodes/ early bird projects afterthe land is made available by
the State Govt.
Preparation oftender documentsfor appointment ofDesign and EPC
Contractor Award of work andimplementation of
Trunk Infrastructure
Preparation of BoQs, specifications, SLAs, WLAsetc.
Preparation of Agenda items Cabinet Note and otherrelated documents for seeking the approval of DMICTrust and Cabinet Committee on Economic Affairs
(CCEA)
Project Development Activities being continued for other nodes and earlybird projects, Multi Modal Logistic Hub
Implementation ofICT in DMIC
Nodes
Institutional Framework
Cabinet Approval for Institutionand Financial Structure ofDMICDC
Incorporation of DMIC Trust
Incorporation of project / node/ city Special PurposeVehicles (SPVs)
Execution of ShareHolders’ Agreement (SHA) andState Support Agreement (SSA)
State cabinet Approvals, Exemption of Stamp duty
Law Enactment in the State Government
Drafting and finalization ofShareHolders’ Agreement(SHA) and State SupportAgreement (SSA) inconsultation with the StateGovernmnet(s)
Delegation of powers to the SPV, transfer of landand funds to the SPV
Monetization ofland in the nodesand channelizingthe funds toexpand theinfluence of eachnode/ project
Approval on Projects fromDMIC Trust
Approvals/ Decisions
Approval on other projects, tender documents,incorporation of SPVs etc. in subsequent meetings.State Cabinet Approvals
Approval from concerned Line Ministries
Approval of the Cabinet Committee on Economic Affairs(CCEA)
Master Planning - Key sustainable development concepts
• Reduction of commuting needs for the workforce
• Polycentric structure – with multiple Central Business Districts (CBDs) and Industrialzones
• Integration of land uses encouraging mixed-use
• Affordable Workers Housing located near the industrial zones
• Neighborhoods distributed around High access Mass Transit Corridors
• Encouraging cycling & pedestrian modes over cars
• Recycling and Reuse of water and solid wastes
• Energy sufficiency through use of renewables
• Conservation of better agricultural land & Protection of sensitivenatural environment (Coastal zones, forests, sanctuaries)
• Integration of existing villages into the new city
• SMART City - IT based real time Control and Governance
Master Planning - Key sustainable development concepts
Gujarat:
Ahmedabad-Dholera SIR
Area 920 Sq. km.
Activation Area: 22.5 Sq. km.Current Status:
• Shareholders Agreement approved by DMIC Trustand the State Cabinet
• State Govt agreed to transfer 5205 ha land to SPV• Environmental clearance obtained• Preliminary Engineering for Activation Area(22.5
sq. km) completed• DPR for MRTS project completed• Tender packages approved by DMIC trust and
CCEA to the value of Rs. 2784.83 crore• Tenders for design and construction of Roads &
Services and Administrative Building for Dholerahave been issued with a cumulative cost of Rs.2366 crore
• Other tenders are being issued in a phasedmanner
Maharashtra:Shendra Bidkin Industrial Park & Dighi Port Industrial Area
Dighi Port
Population: 1.6 mnTotal area: 253 sq. km
Shendra Bidkin IndustrialPark
Population: 0.5 mnTotal area: 84 sq. kmPhase 8.39 sq. km
Current Status:
• Shareholders Agreement executedbetween DMIC Trust and MIDC
• Node/City level SPV incorporated• Equity of DMIC Trust equivalent to the
cost of land has been transferred. Land of3.47 sq. km already transferred to SPVand balance land is being transferred
• Environmental clearance obtained• Prelimiary engineering completed for 8.39
sq. km(Phase I of Shendra BidkinIndustrial Area)
• Tender packages approved by DMIC Trustand CCEA to the value of Rs. 1533.33crore
• The tender for Design & Construction ofRoads & Services and Road over Bridges(RoBs) have been issued with anaggregate value of Rs. 1296 crore
• Other tenders are being issued in aphased manner
UP: Dadri – Noida Ghaziabad IR (DNGIR)Total Area: 210 Sq. km.
• Concept Masterplan for DNGIR completedand approval awaited from the State Govt.
• Feasibility studies for Early bird projectsbeing finalised.
Current Status
UP: Integrated Industrial Township, Greater Noida
Total Area: 747.5 acres
Current Status:
• Shareholders Agreement executed
• Project SPV incorporated
• EIA Studies underway
• DMIC Trust’s share of equity released to
the project SPV
• Land already transferred to SPV
• Preliminary Engineering completed
• RFQ and RFP for selection of EPC Contractor
and the Project Management Consultant has
been issued
Current Status:
• Concept plan completed and approved by the
State Government
• SHA and SSA executed for Node/City level SPV
• State Government has formulated MP Investment
Region Development & Management Act, 2013
and is currently in the process of finalizing the
rules thereunder for implementation of the DMIC
Project.
Madhya Pradesh:Pithampur-Dhar-Mhow IR
Area: 372 Sq. km
Madhya Pradesh:Vikram Udyogpuri (Ujjain)
Area: 1100 ha(approx)
Current Status:
• Share subscription cum ShareholdersAgreement executed
• Project SPV restructured• EIA Studies underway• Land already transferred to SPV• Preliminary Engineering completed• EPC Contractor for trunk infrastructure
implementation selected• DMIC Trust’s share of equity released to
the project SPV
Haryana: Manesar Bawal Investment Region
Total Area: 402 Sq. km.
Early Bird: Global City, Haryana (Approx 1100 ha) Current Status:• Masterplan completed and approved by the
State Government• ICT Master plan has been finalised in
consultation with the State Government• Project development activities are being
taken forward for Global City Project
Rajasthan: Khushkera-Bhiwadi-Neemrana IR
Early Birds: Aerotropolis,Knowledge city, Neemrana - Bhiwadi Road link (50 km)Area: 165 Sq. km.
Current Status:
• Masterplan for KBNIR notified by StateGovternment
• Land Acquisition initiated for 1425.36 ha.• Govt in the process of finalising new legislation
under which implementation of DMIC will betaken up
• Draft SHA and SSA shared with StateGovernment
Learnings from DMIC Project
Availability of land, water, power etc.-
o State Government(s) to make available the land and needs to providecommitment about the availability of water and power;
o Master planning of Industrial Regions (IRs)/ Industrial Areas (IAs) should betaken up only when the land can be made available;
o Strategy should be to start small and grow big – Project should be initiatedwherever the land (especially Govt. owned/ acquired) is available and furthercan be expanded to include other areas to show quick visibility.
Approval Mechanism/ faster decision making -
o Dedicated and empowered Single Point of Contact (SPOC) to be establishedat State level to drive the project with adequate decision making powers;
o Periodic meetings at CM/ CS/ Pr Secretary, Industries level;o Adoption of Single window mechanism at the SPV Level;o Strict timelines to be fixed/ agreed upon for the decision/ approval process.
Approval of Institutional Framework -
o Shareholders’ Agreement (SHA) and State Support Agreement (SSA) to beexecuted between State and Central Government after requisite approvals ina time bound manner;
o Formation of SPV, transfer of land, delegation of planning and developmentalfunctions to the SPV in a time bound manner.
Extensive stakeholder consultations to be undertaken to minimize externalchallenges like Right to Information Act, Writ Petitions, Court stay orders,Representation by social groups etc.
Learnings from DMIC Project