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Details of the Cabinet Approval Accorded on 15th September, 2011 for Development of Industrial Cities in the DMIC
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   Delhi Mumbai Industrial Corridor(DMIC)  
 

ABOUT DMIC

BACKGROUND 

In pursuance of an MOU signed between the Government of India and the Government of Japan during the Hon’ble Prime Minister’s visit to Tokyo in December 2006 to promote investments and explore opportunities for mutual cooperation, Government of India accorded ‘in principle’ approval to the project outline of Delhi - Mumbai Industrial Corridor (DMIC) Project in August 2007. The DMIC is proposed to be developed on either side along the alignment of the 1483 km long Western Dedicated Rail Freight Corridor between Dadri (UP) and Jawaharlal Nehru Port Trust (JNPT), Navi Mumbai. The project seeks to create a strong economic base with a globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance investments and attain sustainable development. A model Industrial Corridor of international standards is proposed to be developed with emphasis on expanding the manufacturing and services base and creating a “Global Manufacturing and Trading Hub”. The DMIC runs across the six States of Uttar Pradesh, Haryana, Madhya Pradesh, Rajasthan, Gujarat and Maharashtra and majority of projects in DMIC are envisaged to be implemented through Public Private Partnership.

 

DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION

 

The DMIC Development Corporation (DMICDC) was incorporated The DMIC Development Corporation (DMICDC) was incorporated in January, 2008 for project development, coordination and implementation of the numerous projects. The Authorised Capital of DMICDC of Rs.10 crore was held by Government of India (49%) and private entities (51%). In pursuance of the Cabinet decision dated 15th September, 2011, the equity held in DMICDC by IL&FS (41%) and IDFC (10%) were taken over by IIFCL (41%) and LIC(10%) respectively. The Authorized Capital of DMICDC was increased from Rs.10 crore to Rs.100 crore. Secretary, Department of Industrial Policy & Promotion (DIPP) is the ex officio Chairman of DMICDC. The Chief Executive Officer of DMICDC has been appointed on the recommendation of a Search Committee headed by the Cabinet Secretary. In pursuance of the Cabinet decision in August, 2012, equity structure of DMICDC was revised whereby Government of India’s equity is retained at 49%, JBIC’s (Japan Bank for International Cooperation) equity at 26%, HUDCO at 19.9%, IIFCL at 4.1% and LIC at 1%.

 

PROPOSED DEVELOPMENT

 

The Cabinet in its meeting held in August, 2007 approved development of 24 investment regions/ industrial areas under the project. Following six Investment Regions and six Industrial Areas were approved to be developed in Phase I of the project.

 

Investment Regions:

§   Dadri-Noida- Ghaziabad Region in Uttar Pradesh as General Manufacturing Investment Region

§   Manesar-Bawal Region in Haryana as Auto Component/ Automobile Investment Region;

§   Kushkhera-Bhiwadi-Neemrana Region in Rajasthan as General Manufacturing/ Automobile/ Auto Component Investment Region;

§   Bharuch-Dahej* Region in Gujarat as Petroleum, Chemical and Petro-Chemical Investment Region (PCPIR)

§   Igatpuri-Nashik-Sinnar* Region in Maharashtra as General Manufacturing Investment Region;

§   Pitampura-Dhar-Mhow in Madhya Pradesh as General Manufacturing Investment Region.

(* Ahmedabad-Dholera Investment Region in Gujarat and the Shendra-Bidkin Industrial Park city near Aurangabadin Maharashtra were taken up subsequent to the approval of the Cabinet on 16thAugust, 2007 on the recommendation of the respective State Governments, in place of Bharuch-Dahej Investment Region and Igatpuri-Nashik-SinnarInvestment Region and approval of Cabinet taken on 15th September, 2011).

 

 

Industrial Areas:

§   Meerut-Muzaffarnagar Zone in Uttar Pradesh as Engineering & Manufacturing Industrial Area;

§   Faridabad-Palwal Zone in Haryana as Engineering & Manufacturing Industrial Area;

§   Jaipur-Dausa Zone in Rajasthan as Marble/Leather/Textile Industrial Area; (Subsequently, Government of Rajasthan requested to replace this IA with Kishangarh, Ajmer)

§   Vadodara-Ankleshwar Zone in Gujarat as General Manufacturing Industrial Area;

§   Industrial Area with Greenfield Port at Dighi in Maharashtra;

§   Nimach-Nayagaon in Madhya Pradesh as Engineering and Agro-Processing Industrial Area.

 

Following 12 investment regions/ industrial areas identified tentatively for development in Phase II of the project:-

 

Investment Regions:

 

§  Kundli – Sonepat Investment Region

§  Ajmer-Kishangarh Investment Region

§  Bharuch-Dahej Investment Region

§  Dhule-Nardhana Investment Region

§  Ratlam-Nagda Investment Region

Industrial Areas:

 

§  Rewari-Hissar Industrial Area

§  Rajsamand-Bhilwara Industrial Area

§  Pali-Marwar Industrial Area

§  Surat-Navsari Industrial Area

§  Valsad-Umbergaon Industrial Area

§  Pune-Khed Industrial Area

§  Shajhapur-Dewas Industrial Area

 

Initially, the following eight investment regions/industrial areas have been taken up for development as Industrial Cities:

 

i. Ahmedabad-Dholera Investment Region, Gujarat

ii. Shendra-Bidkin Industrial Park city near Aurangabad, Maharashtra

iii. Manesar-Bawal Investment Region, Haryana

iv. Khushkhera-Bhiwadi-Neemrana Investment Region, Rajasthan

v. Pithampur-Dhar-Mhow Investment Region, Madhya Pradesh

vi. Dadri-Noida-Ghaziabad Investment Region, Uttar Pradesh and

vii. Dighi Port Industrial Area, Maharashtra

viii. Jodhpur-Pali-Marwar Industrial Area, Rajasthan

DMIC TRUST

 

In pursuance of the GOI approval for the creation of a dedicated corpus to facilitate the funding for the development of a world class infrastructure at the Industrial Cities, DMIC Project Implementation Trust was set up on 27th September, 2012. The Trust is managed by the six Trustees i.e Secretary, Department of Economic Affairs, Secretary, Department of Industrial Policy and Promotion, Secretary, Planning Commission, Additional Secretary & Financial Adviser, Department of Industrial Policy & Promotion, Joint Secretary, Department of Expenditure and CEO & MD, DMICDC. Secretary, Department of Economic Affairs is the Chairman of the Board of Trustees and CEO & MD, DMICDC is the Chief Executive Officer of the Trust.  The Trust has met seven times as on 25th June, 2014. A special meeting of DMIC Trust was also held on 17th Jan, 2014.

 

In the third meeting held on 18 – 19 March, 2013, the following investment proposals were considered and approved:

 

i.              Model Solar Power Project Neemrana, Rajasthan

ii.            Water Desalination Project at Dahej, Gujarat

iii.           Logistic Data Bank Project

 

The following six investment proposals worth Rs.2215.03 Crore were considered in the fourth meeting of DMIC trust which was held on 10th September, 2013:

 

i.              Vikram Udyogpuri, Ujjain, Madhya Pradesh

ii.            Integrated Industrial Township at Greater Noida, UP

iii.           Multi Modal Logistics Hub at Greater Noida near Dadri

iv. Improvement of Water Supply System to Pithampur Industrial Area and Phase-1of Pithampur-Dhar-Mhow Investment Region, Madhya Pradesh

v.            Integrated multimodal Logistics Hub, Rewari Haryana

vi.           Construction of New Rail Line from Bhimnath to Dholera Special          

               Investment Region in Gujarat.


The Trust granted in-principle approval in the case of (ii) and (v), and approved the rest.

 


CCEA, at its meeting held on 20th January, 2014, approved the projects of Integrated Industrial Township Project at Vikram Udyogpuri near Ujjain, Madhya Pradesh and Integrated Industrial Township Project, Greater Noida. It was also decided that the Model Solar Project in Neemrana, Rajasthan will be operated and influenced by a 100% subsidiary of DMICDC. SPV in respect of Integrated Industrial Township Project, Greater Noida and the Model Solar Project in Neemrana, Rajasthan has been formed and the implementation of the project is in progress.

 

CCEA, at its meeting held on 20th January, 2014, approved the projects of Integrated Industrial Township Project at Vikram Udyogpuri near Ujjain, Madhya Pradesh and Integrated Industrial Township Project, Greater Noida. It was also decided that the Model Solar Project in Neemrana, Rajasthan will be operated and influenced by a 100% subsidiary of DMICDC. SPV in respect of Integrated Industrial Township Project, Greater Noida and the Model Solar Project in Neemrana, Rajasthan has been formed and the implementation of the project is in progress.

 

A proposal for transfer of land at Sector 25 and Sector 26 in Dwarka, New Delhi, to DIPP for the development of a world class state-of-the-art Exhibition cum Convention Centre (ECC) and Integrated Freight Complex (Air Cargo Complex) is under consideration.

 

FINANCIAL ASSISTANCE

 

Ø  During 11th Five Year Plan, after appraisal and approval by competent authorities, an amount of Rs.219.00 crore was released to the DMICDC for carrying out project development activities.

Ø  During 12th Five Year Plan (2012-2017), an amount of Rs.7546 crore has been allocated for DMIC Project.

 

Ø   During 2013-14, an amount of Rs. 303.80 crore (Rs. 302.99 crore for project implementation and Rs. 0.81 crore for grant –in-aid for project development related activities) was released to DMIC Project Implementation Trust Fund.

 

Ø   During 2014-15, an amount of Rs. 693.00 crore has been allocated during Budget Estimates 2014-15 for Project Implementation including Exhibition cum Convention Centre Project in Dwarka, New Delhi.

 

Ø   During 2014-15, an amount of Rs.214.00 cr. has been released so far to DMIC Project Implementation Trust Fund for project implementation activities.

 

Ø   A proposal for utilization of Japanese Assistance Under Japan International Cooperation Agency (JICA) through Special Terms for Economic Partnership (STEP) Loan for DMIC Project was approved by CCEA at its meeting held on 20th January, 2014 and further action is in progress.

 

 
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