6 Months agoDelhi Mumbai Industrial Corridor (DMIC) is touted as the world’s largest infrastructure project with a total estimated investment of USD 100 billion.
Through its ‘Make in India’ campaign, the Government of India aims to invigorate the country’s manufacturing sector, enhance the country's global competitiveness, facilitate investment, foster innovation and ramp up the ease of doing business in the country. With this, the plan is to increase the share of manufacturing in the Gross Domestic Product (GDP) to 25% by 2025. This ambitious goal requires creation of a world-class infrastructure, building a healthy business ecosystem and developing state-of-the art transport facilities. The government has been making steady progress in pursuit of this goal and its plan to build Industrial Corridors and develop Smart Cities is a noteworthy step in this direction. With a total of five planned industrial corridor projects, India is trying to bring a paradigm shift in its industrial development.1
Approved in 2011, Delhi Mumbai Industrial Corridor (DMIC) is touted as the world’s largest infrastructure project with a total estimated investment of USD 100 billion. The aim is to develop the corridor as a “Global Manufacturing and Trading Hub” with infrastructure linkages like power plants, high capacity transportation, assured water supply and other things that would further the objective of building a world-class infrastructure to aid manufacturing – the very essence of Make in India!
24 investment regions are proposed to be completed in 4 phases with 8 under Phase-I and a 1504 km long Western Dedicated Freight Corridor is planned spanning six states making it the largest infrastructure project in the world.2 Upon its completion, the DMIC will create 25 million job predominantly in the manufacturing sector.3
The government plans to build 8 smart cities, 5 power projects, 2 airports, 2 Mass Rapid Transportation Systems (MRTS) and 2 logistics hubs in the corridor with a Project Development Fund of USD 2.6 billion and additional USD 153 million over a period of five years.4 The Government of Japan is investing USD 4.5 billion in Phase I of DMIC5 and is also providing technical assistance for the project.6
What makes the project both relevant and unique is its ability to contribute towards creating a strong economic base and to help keep up with the pace of urbanization. It is always being looked forward to as it promises to stimulate India’s employment potential. No wonder, the project featured in KPMG’s ‘100 Most Innovative Global Projects’ as one of the world’s most innovative and inspiring infrastructure projects
DMIC expects Phase I to be completed by 2019. A brief description of the key projects underway is as follows7:
- Dholera, Special Investment Region (DSIR):
The region will have a total area of 920 sq.km with a developable area of 567.39 sq.km once all six Town Planning Schemes (TPS) are completed. In Phase I, a total area of 153 sq.km will be developed under TPS 1 and 2. Apart from proximity to industrial cities of Vadodara, Rajkot, Surat, Bhavnagar and Ahmedabad, DSIR will have world-class infrastructure, a Mass Rapid Transit System connecting it to Ahmedabad, a dedicated international airport and an expressway. The city of Dholera is planned to be India’s first smart city having world class infrastructure. It will offer provisions such as storm water drainage, water supply, sewerage, power, telecommunications and gas through an underground network.8 9
The state government has transferred 1178.95 hectares of land to Dholera Industrial City Development Limited (DICDL), a Special Purpose Vehicle (SPV) for the project. The construction of roads and underground utilities has already started. Total investment into the region is USD 18,086 million.10
- Shendra-Bidkin Industrial Area (SBIA)
SBIA is a large-scale industrial cluster which will further extend the present Maharashtra Industrial Development Corporation’s (MIDC) Shendra Industrial Park to Bidkin town. Upon its completion, the industrial area would be ideal for export-oriented business due to its proximity to Aurangabad city, an airport and a railway line. The industrial area is just 8 km away from the Aurangabad Airport and 15 km away from the Aurangabad City. In part I of the project, an area of 41.42 sq.km will be developed in two phases.
- Integrated Industrial Township (IIT) Project in Greater Noida
The IIT project will be built by 2018 as a part of the greater Dadri Noida Ghaziabad Investment Region (DNGIR). The region is planned to include manufacturing units of cars, two-wheelers, consumer electronics, and steel.11 The IIT, with an overall area of 747.5 acres will further drive sustainable development of industrial activity, research & development (R&D) and manufacturing activities in DNGIR.12 13 The smart city is being developed with Information and Communication technologies, real-time governance and an MRTS, providing high-quality life to its residents.14
- Integrated Industrial Township ‘Vikram Udyogpuri’ Project in Ujjain
Vikram Udyogpuri project will be built as a part of the Pithampur – Dhar - Mhow Region in Madhya Pradesh. The smart city will leverage its proximity to the temple town of Ujjain (10km) and the airport (61 km). Single-window clearance system will be set up in the town to attract industries from focus sectors like food processing, electronic systems, biotechnology and renewable energy.15 The state government has transferred1,100 acres of land to the SPV and an environmental clearance has also been obtained
- Global City Project in Gurgaon
The Global City project is a part of the larger Manesar-Bawal Investment Region (MBIR), at Garhi-Harsaru in Gurgaon District in Haryana. The city will have integrated IT services, power, water supply and other utilities on the lines of a smart city. Upon its completion, the city will have world-class financial and business centre connected to important national highways in the region – thus acting as a growth driver.
With these megaprojects at its disposal, the target is to boost employment potential two-fold, multiply industrial output by three times and increase exports by four times from the region, in the coming seven to nine years. The project is expected to fuel India’s economic growth for next 20-30 years.16