Bangalore
  • Bangalore
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  • Ahmedabad

DMIC project brief

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Introduction:

GOI(Government of India)  plans to develop a multimodal high axle load dedicated freight corridor between Delhi and Mumbai. The main objective of DMIC (Delhi Mumbai Industrial Corridor) would be to promote the economic development of the region by enhancing the investment and by optimal usage of the potential.

A MoU(Memorandum of understanding) is signed between METI (Ministry of Economy, Trade and Industries) of Japan and MoCI (Ministry of Commerce and Industries) of India to explore the opportunities of mutual cooperation.

The distribution of freight corridor which passes through six states indicates that Rajasthan(39%) and Gujarat(38%) constitute 77% of the length, Maharashtra and Haryana constitute 10% each and Uttar Pradesh and NCR Delhi constitute a 1.5% each. The freight corridor is aligned parallel to the existing railway tracks for the convenience in transportation.

Vision, Goals and Objectives:

The vision is to create a strong economic base in India which can sustain in the globally competitive environment and enhance local commerce and foreign investments. The goals are mainly concerned with the economic development of the region. To improve the employment potential, increase the industrial output by three times and also to increase the exports by four times in just five years.

There are many existing industrial estates along the DMIC corridor. The objectives also include developing and improving the industrial infrastructure. To achieve the above mentioned objectives, the government plans to develop new industrial estates, clusters and export hubs in the region. This will not only increase the employment opportunities but also increases the exports. Development of agro-processing industries, packaging and cold-storage industries is also important for achieving the overall improvement in industrial yield and exports. For all the infrastructure development efficient human resource is crucial factor. So one of the objectives is to develop skill development centres and vocational training centres.

To facilitate all the development and transportation of the goods, development of transport infrastructure and social infrastructure is necessary. Government has identified certain areas to achieve this. Provision of efficient rail, road, air and water connectivity is to be ensured for facilitating the goods from the industries. For this purpose, Efficient logistics chain with multi-modal transshipment zones and logistic hubs will be developed. Government also gave proposals for installation of Captive Power Generation Plants with power transmission facilities for uninterrupted usage of power. Residential, commercial, institutional and recreational infrastructure is also to be provided for attractive investment climate. These will ensure the primary goal of self sustainable development.

Concept:

Integrated corridor development approach and node based development:

DMIC consists of many well-developed, moderately developed and under developed industrial estates with or without proper social and physical infrastructure. The major missing link of these industrial estates is transportation-logistics, industrial and social infrastructure to facilitate the exports of the output. The DMIC proposes to address this lack of infrastructure through proposing high impact nodes to provide efficient investment-friendly policies under which investment regions and industrial areas will be developed. These investment regions and industrial areas will be developed with self-sustainable infrastructure and world class facilities in terms of transport and social infrastructure. The connectivity will be well developed with road and rail connectivity for freight movement including logistic hubs, airports and ports.

Investment regions:

Investment region would be specifically delineated area for industries with a minimum area of 200 sq km. Maximum area limit will be determined depending on the individual potential of that area. Each DMIC state will have at least one Investment region to ensure the equity in economic benefits. While selecting the investment regions, the possible factors taken into consideration are proximity to metropolitan areas, potential for developing greenfield airports or augmentation, availability of huge chunks of land. These investment regions will be the core industrial areas which will generate high revenue and economic benefits.

Industrial areas:

Industrial areas would be developed for the establishment of facilities which cater for domestic and export led production. The minimum area of industrial areas would be 100 sq km. These areas will have the manufacturing units of infrastructure provision to facilitate the domestic and export led production. Industrial areas are selected depending upon the resource availability and the locations with an opportunity to develop from under-developed industrial areas to developed industrial areas.

Project influence area:

Project influence area for DMIC consists of seven states and two union territories. The total area of PIA comprises of 436,486 sq km which constitutes 13.8 percent of the total area. Project influence area comprises of ten cities with more than one million population. They are Delhi, Mumbai, Pune, Ahmedabad, Jaipur, Faridabad, Meerut, Surat, Vadodara and Nashik. It also consists of six cities with population more than half million and less than one million. They are Aligarh, Ajmer, Ghaziabad, Bhiwadi, Bhavnagar and Jodhpur. All these cities will have a direct influence due to DMIC and enjoys certain economic benefits.

Impact on real estate:

Major impact on real estate development due to DMIC will be on the six ‘million plus’ cities which fall under the influence area of DMIC. Investment regions are selected in such a way that they get the benefit of the near by major cities. This not only helps that particular investment region but also increases the business potential of the cities located near by. This potential will give a rise to the demand of physical and social infrastructure facilities including residential and commercial real estate development. Of the cities which are located in this influence zone, non metropolitan cities like  Ahmedabad, Jaipur, Faridabad, Meerut, Surat, Vadodara and Nashik will witness a rapid growth in real estate investment due to availability of lands and cheaper prices. Existing transport infrastructure also plays an important role in the impact because, the industrial areas and investment regions are located along the rail and road networks, so cities with good connectivity through national highways and rail network will be the first preference for real estate investment in future.

Tags : agro-processing industries Delhi Mumbai Industrial Corridor DMIC economic development foreign direct investment Government of India Industrial infrastructure development memorandum of understanding Ministry of Commerce and Industries

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