INDUSTRIAL CORRIDOR

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SUMMARY

The different sectors of an economy are inter-dependent on each other. Industrial corridors, recognising this inter-dependence, offer effective integration between industry and infrastructure, leading to overall economic and social development. Industrial corridors constitute world-class infrastructure, such as:1

  • High-speed transportation network – rail and road
  • Ports with state-of-the-art cargo handling equipment
  • Modern airports
  • Special economic regions/industrial areas
  • Logistic parks/transhipment hubs
  • Knowledge parks focused on catering to industrial needs
  • Complementary infrastructure such as townships/real estate
  • Other urban infrastructure along with enabling policy framework

Five industrial corridor projects have been identified, planned and launched by the Government of India. These corridors are spread across India, with strategic focus on inclusive development to provide a boost to industrialization and planned urbanization. Manufacturing is a key economic driver in each of these projects. These projects are expected to play a critical role in raising the share of contribution of the manufacturing sector from approximately 16%2 to 25% by 2025.

Smart cities are being developed along these corridors. These cities, with state-of-the-art infrastructure, will house the new workforce that is required to power manufacturing, in turn leading to planned urbanization.

DELHI-MUMBAI INDUSTRIAL CORRIDOR (DMIC)

The Delhi-Mumbai Industrial Corridor (DMIC) is a mega infrastructure project by the Government of India. The corridor covers an overall length of 1483 km between the political capital, Delhi, and the business capital, Mumbai, of India.3

The US $100 bn4 project is being funded by the Government of India, Japanese loans, investments by Japanese firms and through Japan depository receipts issued by Indian companies.5

Delhi Mumbai Industrial Corridor Development Corporation (DMIDC) is the incorporating agency for the project. DMIDC has been registered as a company with 49% equity of the Government of India, 26% equity of the Japan Bank for International Cooperation (JBIC) and the remaining held by government financial institutions.6 The DMIDC has been incorporated to establish, promote and facilitate the development of the DMIC project. It undertakes and assists project development services, for various central government agencies and state governments, relating to investment regions/industrial areas/economic regions/industrial nodes and townships.7

Delhi Mumbai Industrial Corridor (DMIC) Project aims to create futuristic Industrial Cities by leveraging the “High Speed – High Capacity” connectivity backbone provided by the Western Dedicated Freight Corridor (DFC).8 

The corridor will have 24 investment regions in eight manufacturing cities in Phase 1 of the project.9 The five cities that have been chosen in Phase 1 as Investment Regions are10

  1. Manesar – Bawal (Haryana)
  2. Dadri – NOIDA – Ghaziabad (Uttar Pradesh)
  3. Ahmedabad – Dholera (Gujarat)
  4. Pithampur – Dhar – Mhow (Madhya Pradesh)
  5. Khushkhera – Bhiwadi – Neemrana (Rajasthan)

The three cities that have been chosen as Industrial Areas are

  1. Shendra – Bidkin (Maharashtra)
  2. Dighi Port (Maharashtra)
  3. Jodhpur – Pali – Marwar (Rajasthan)

For more information please visit DMIDC Project Influence Area.

The DMIC Projects aims to achieve two goals:11

  1. Triple industrial output in 9 years
  2. Quadruple exports from the region in 8-9 years.

Current Status of Project:

  1. The DMIC Project has made considerable progress with trunk infrastructure development activities nearing completion at four locations in Gujarat, Maharashtra, Uttar Pradesh and Madhya Pradesh.12

Developed land is being allotted to industries. 56 plots covering 335.51 acres of land area have already been allotted. This is expected to bring investments worth US$ 1.2 bn over a period of 3-5 years (as of December 2018).13

Other projects approved by DMIC Trust along with current status of these projects are as under:

  1. Exhibition cum Convention Centre (ECC) in Dwarka
    • Cabinet has accorded its approval and Project Steering Committee has been constituted to steer the project.
    • M/s AECOM have been appointed as Program Management Consultants to take the various project developmental activities forward.
  2. Airport Projects
    • Greenfield International Airport is being developed in Dholera in Gujarat. Land admeasuring 1426 Ha is in the possession of the State Govt. A SPV “Dholera International Airport Company Limited has been incorporated. No Objection received from Ministry of Defense and ‘In principle’ approval has been accorded by Ministry of Civil Aviation. Environment clearance has also been obtained from Ministry of Environment and Forests. M/s PWC has been appointed as the Transaction Advisor(s).
    • An Aerotropolis Project is also being developed as part of overall development plan of Khushkhera Bhiwadi Neemrana Investment Region in Rajasthan. The Techno – economic feasibility report has been prepared and has been approved by State Govt. Ministry of Defence has issued the No Objection Certificate for the Aerotropolis project in February 2015 and Site Clearance from Ministry of Civil Aviation (MoCA) has been received in November, 2015. The process for preparation of Detailed Project Report (DPR) has been initiated by DMICDC through Airport Authority of India (AAI).
  3. Model Solar Project at Neemrana, Rajasthan
    • An SPV “DMICDC Neemrana Solar Power Limited” has been incorporated and equity has been released to the project SPV.
    • Lease deed has been executed and Power Purchase Agreement (PPA) for 5 MW plant executed between NTPC Vidyut Vyapar Nigam Ltd. (NVVN) & project SPV.
    • The project for 5MW has been commissioned as grid synchronization of 5MW Solar power plant is complete & power feeding to grid has commenced since 24th July, 2015. Commissioning Certificate has been issued by NTPC Vidyut Vyapar Nigam Ltd. (NVVN) on 3rd September, 2015.
    • PPA between M/s Mikuni India Pvt. Ltd., a Japanese company and M/s DMICDC NSPCL for 1MW has been executed.
    • Implementation Document (ID) has been executed between M/s DMICDC Limited and M/s Hitachi Limited.
    • Data Purchase Agreement between M/s Hitachi Limited and M/s DMICDC NSPCL for 1MW Solar has been executed.
  4. DMICDC Logistics Data Services Project
    • The Shareholders’ Agreement has been executed and project SPV by the name of “DMICDC Logistics Data Services” has been incorporated.
    • Port Operator Agreement has also been executed with Jawaharlala Nehru Port Trust (JNPT) on 17th February, 2016.
    • Operations have been initiated at JNPT Port with effect from 1st July, 2016.
    • 750,000 containers have been tagged/de-tagged till 30th September, 2016.
  5. Mass Rapid Transport System (MRTS) Projects
    • For the MRTS Project from Gurgaon to Bawal in Haryana, Final Detailed Project Report (DPR) has been submitted and approved by the State Govt. in February, 2016. The project is being included in JICA Special Rolling Plan for DMIC Project.
    • For MRTS Project between Ahmedabad to Dholera in Gujarat, final DPR has also been prepared and approved by State Govt. The project has also been included in the JICA Special Rolling Plan for DMIC Project in February, 2015.
  6. Global City Project
    • Project SPV has been incorporated between DMIC Trust and State Govt.
    • The project consultants appointed by DMICDC for finalization of master plan is taking the study forward in close coordination with the State Govt.
    • Land is in possession of the State Govt.
  7. Integrated Multi Modal Logistics Hub in Haryana
    • Land admeasuring 1000 acres has been identified at villages Talot, Ghatasher and Bashirpur, Tehsil Narnaul, District Mahendergarh for the project.
    • The State Cabinet has approved the proposal for acquisition of the land parcel through direct negotiations
    • Project SPV has been incorporated between DMIC Trust and State Govt.
    • Consultants for techno-economic feasibility study and master planning have been appointed.
  8. Multi Modal Logistics Hub and Multi Modal Transport Hub, Dadri in Uttar Pradesh
    • The consultants are being appointed for preparation of Detailed Project Report (DPR).
    • State Govt. is under the process of acquiring land.
    • Discussions have also been initiated with Dedicated Freight Corridor Corporation of India Limited (DFCCIL) so as to provide connectivity to the site from Western and Eastern Dedicated Freight Corridor.
AMRITSAR-KOLKATA INDUSTRIAL CORRIDOR (AKIC)

The Amritsar-Kolkata Industrial Corridor (AKIC) Project extends from Amritsar (Punjab) to Dankuni (West Bengal). The Eastern Dedicated Freight Corridor if the back bone of this economic corridor.14 The AKIC covers six Indian states – Punjab, Haryana, Uttar Pradesh, Bihar, Jharkhand and West Bengal.15 The length of the Amritsar-Kolkata Industrial Corridor (AKIC) is 1839 km across the six Indian states.16

The perspective planning of the AKIC has been completed and seven Integrated Manufacturing Clusters (IMCs) have been identified:17

  1. Rajpura-Patiala (Punjab)
  2. Prag-Khurpia Farms (Uttarakhand)
  3. Bhaupur (Uttar Pradesh)
  4. Gamhariya (Bihar)
  5. Barhi (Jharkhand)
  6. Raghunathpur (West Bengal)

Saha (Haryana)The next step in the process if the development of the detailed master plan, preliminary designing and engineering for the areas that will be made available by the State Government.

BENGALURU-MUMBAI ECONOMIC CORRIDOR (BMEC)

The Bengaluru Mumbai Economic Corridor (BMEC) in intended to facilitate the development of a well-planned and resource-efficient industrial base served by world-class sustainable connectivity infrastructure, bringing significant benefits in terms of innovation, manufacturing, job creation and resource security.

The BMEC will be spread across Karnataka and Maharashtra.18

The DMICD and the UK Trade and Investment (UKTI) have been determined as the nodal agencies on the Indian and UK sides respectively. DMICDC has appointed M/s Egis India Consulting Engineers Pvt. Ltd. in JV with IAU ile-de-France & CRISIL Risk & Infrastructure Solutions Limited as consultant for the feasibility study of BMEC.

CHENNAI-BENGALURU INDUSTRIAL CORRIDOR (CBIC)

The Chennai Bengaluru Industrial Corridor (CBIC) has been developed to achieve accelerated growth, regional industry agglomeration in the states of Tamil Nadu, Karnataka and Andhra Pradesh, and to facilitate the development of a well-planned and efficient industrial base.

The industrial corridor will achieve the goal by providing smooth access to industrial production units, reducing transportation logistic costs and improving delivery time as well as decreasing inventory cost. This will ensure increased private investments in manufacturing and industrial activity in the three states.

The Japan International Cooperation Agency (JICA) study team conducted a preliminary study for the Comprehensive Integrated Master Plan of the CBIC. The study team identified 25 priority projects, across various sectors, that aim to remove infrastructural bottlenecks in the project. The Mater Plan is spread over 20 years - 2013-2033.19

Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) has been designated as nodal agency to take over the project work of the CBIC region. The Environment Impact Assessment (EIA) Consultants are being appointed by them for undertaking EIA studies.

Three nodes have been identified to be taken up for Master Planning:20

  1. Tumkur (Karnataka)
  2. Ponneri (Tamil Nadu)
  3. Krishnapatnam (Andhra Pradesh)
VIZAG-CHENNAI INDUSTRIAL CORRIDOR (VCIC)

Vizag Chennai Industrial Corridor (VCIC) is the first coastal economic corridor in the country. It is part of the East Coast Economic Corridor (ECEC).22

It covers more than 800 km of Andhra Pradesh’s coastline and is aligned with the Golden Quadrilateral.23 It also plays a critical role in the “Act East Policy” of India. The “Act East Policy” focuses on increasing the integration of the Indian economy with the economies of the Association of the Southeast Asian Nations (ASEAN).24

In September 2016, the Asian Development Bank (ADB) approved loans and grants worth US$ 631 mn25 for the infrastructural development along the VCIC. The amount comprises

  1. US$ 500 mn two-tranche facility to build key infrastructure,26 
  2. US$ 125 mn two-tranche loan to help with industrial policies and business promotion
  3. US$ 5 mn grant from the multi-donor Urban Climate Change Resilience Trust Fund, managed by the ADB
  4. US$ 1 mn technical assistance to help the Andhra Pradesh local government to manage the corridor.

ADB has identified four nodes, and are based on the following criteria:27

  1. Current level of industrial agglomeration
  2. Availability of land for development of new industrial clusters
  3. Proximity to urban centres and seaports
  4. Rail and road connectivity
  5. Availability of power and water.

The four nodes that have been identified for development are Visakhapatnam, Tirupati-Nellore, Chennai-Krishnapatnam, Gannavaram-Kankipadu and Kakinada-Rahjamundry.28

In its 2018-19 budget, the Government of Andhra Pradesh allotted US$ 167.16 mn to the Visakhapatnam-Chennai Industrial Corridor Development Program (EAP).29

Sources
  1. “Delhi Mumbai Industrial Corridor”, Characteristics of Industrial Corridor, http://delhimumbaiindustrialcorridor.com/characteristics-of-industrial-corridor.html, accessed on 20 May 2019
  2. “Ministry of Finance”, Contribution of various sectors to GDP, http://pib.nic.in/newsite/PrintRelease.aspx?relid=186413, accessed on 20 May 2019
  3. “Delhi-Mumbai Industrial Corridor”, Introduction, http://delhimumbaiindustrialcorridor.com/introduction.html, accessed on 20 May 2019
  4. “Delhi Mumbai Industrial Corridor”, Overview, https://www.dmicdc.com/about-DMICDC, accessed on 20 May 2019
  5. “Delhi-Mumbai Industrial Corridor”, Introduction, http://delhimumbaiindustrialcorridor.com/introduction.html, accessed on 20 May 2019
  6. “Department for Promotion of Industry and Internal Trade”, Delhi Mumbai Industrial Corridor (DMIC), https://dipp.gov.in/japan-plus/delhi-mumbai-industrial-corridor-dmic, accessed on 20 May 2019
  7. “Delhi Mumbai Industrial Corridor”, Overview, https://www.dmicdc.com/about-DMICDC, accessed on 20 May 2019
  8. “Delhi Mumbai Industrial Corridor”, Overview, https://www.dmicdc.com/about-DMICDC, accessed on 20 May 2019
  9. “Delhi Mumbai Industrial Corridor”, Overview, https://www.dmicdc.com/about-DMICDC, accessed on 20 May 2019
  10. “Delhi Mumbai Industrial Corridor”, Project Influence Area, https://dmicdc.com/DMIC-projects/project-influence-area, accessed on 20 May 2019
  11. “Delhi Mumbai Industrial Corridor”, Project Goals, https://dmicdc.com/DMIC-projects/project-goals, accessed on 20 May 2019
  12. “Ministry of Commerce & Industry”, Year End Review 2018-Ministry of Commerce & Industry, http://pib.nic.in/PressReleseDetail.aspx?PRID=1555538, accessed on 20 May 2019
  13. “Ministry of Commerce & Industry”, Year End Review 2018-Ministry of Commerce & Industry, http://pib.nic.in/PressReleseDetail.aspx?PRID=1555538, accessed on 20 May 2019
  14. “Department for Promotion of Industry and Internal Trade”, Chennai Bengaluru Industrial Corridor, https://dipp.gov.in/sites/default/files/ic-annex3.pdf, accessed on 20 May 2019
  15. “Department for Promotion of Industry and Internal Trade”, Chennai Bengaluru Industrial Corridor, https://dipp.gov.in/sites/default/files/ic-annex3.pdf, accessed on 20 May 2019
  16. “Department for Promotion of Industry and Internal Trade”, Chennai Bengaluru Industrial Corridor, https://dipp.gov.in/sites/default/files/ic-annex3.pdf, accessed on 20 May 2019
  17. “Department for Promotion of Industry and Internal Trade”, Chennai Bengaluru Industrial Corridor, https://dipp.gov.in/sites/default/files/ic-annex3.pdf, accessed on 20 May 2019
  18. “Department for Promotion of Industry and Internal Trade”, Chennai Bengaluru Industrial Corridor, https://dipp.gov.in/sites/default/files/ic-annex3.pdf, accessed on 20 May 2019
  19. “Department for Promotion of Industry and Internal Trade”, Chennai-Bengaluru Industrial Corridor (CBIC), https://dipp.gov.in/japan-plus/chennai-bengaluru-indusrial-corridor-cbic, accessed o 20 May 2019
  20. “Department for Promotion of Industry and Internal Trade”, Chennai-Bengaluru Industrial Corridor (CBIC), https://dipp.gov.in/japan-plus/chennai-bengaluru-indusrial-corridor-cbic, accessed o 20 May 2019
  21. “Government of Andhra Pradesh”, Vishakhapatnam – Chennai Industrial Corridor, Background, https://www.apindustries.gov.in/VCIC/Public/Background.aspx, access on 20 May 2019
  22. “Government of Andhra Pradesh”, Vishakhapatnam – Chennai Industrial Corridor, Background, https://www.apindustries.gov.in/VCIC/Public/Background.aspx, access on 20 May 2019
  23. “Government of Andhra Pradesh”, Vishakhapatnam – Chennai Industrial Corridor, Background, https://www.apindustries.gov.in/VCIC/Public/Background.aspx, access on 20 May 2019“AP Finance”, Outcome Budget 2018-19, https://www.apfinance.gov.in/uploads/budget-2018-19-books/Volume-VII-1.pdf, accessed on 20 May 2019
  24. “AP Finance”, Outcome Budget 2018-19, https://www.apfinance.gov.in/uploads/budget-2018-19-books/Volume-VII-1.pdf, accessed on 20 May 2019
  25. “AP Industries”, Project Agreement, https://www.apindustries.gov.in/VCIC/Data/LoanAgreements/Project_Agreement.pdf, accessed on 20 May 2019
  26. “Ministry of Commerce & Industry”, Approval of Loan to VCIC by ADB, http://pib.nic.in/newsite/PrintRelease.aspx?relid=159252, accessed on 20 May 2019
  27. “Asian Development Bank”, Vizag-Chennai Industrial Corridor, https://www.apindustries.gov.in/APIndus/Data/Vizag-Chennai%20Industrial%20Corridor_Full%20Report.pdf, accessed on 20 May 2019
  28. “Asian Development Bank”, Vizag-Chennai Industrial Corridor, https://www.apindustries.gov.in/APIndus/Data/Vizag-Chennai%20Industrial%20Corridor_Full%20Report.pdf, accessed on 20 May 2019
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