New Delhi 22 Aug, 2007

1. Haryana Haryana Dadri Uttar Pradesh Rajasthan Gujarat Madhya Pradesh Maharashtra J.N.Port Delhi-Mumbai Industrial Corridor Department of Industrial Policy & Promotion (DIPP) Ministry of Commerce & Industry Government of India (MoCI) New Delhi 22 Aug, 2007 www.NoidaPlots.wordpress.com

2. Overview • Government of India initiated the development of DMIC along the Dedicated Freight Corridor (DFC) to optimize on the connectivity offered • MOU relating to the project was signed between MoCI and METI, Japan in December, 2006 to create the framework for mutual cooperation • At the instance of the MoCI, an Inter-Ministerial Group was formed to evolve the Project Outline : • MoCI appointed IL&FS Infrastructure Development Corporation in March, 2007 to detail the project concept • Pursuant to discussions with Central & State Government agencies, IL&FS have since submitted their Report • First Taskforce Meeting held at Tokyo on 25th May, 2007 • Second Task Force Meeting held at New Delhi on July 02, 2007 • Third and Final Task Force Meeting held at Tokyo on July 23, 2007 to finalize the Concept Paper www.NoidaPlots.wordpress.com

3. Delhi-Mumbai Industrial Corridor (DMIC) Haryana Dadri Haryana • The 1483-km long DFC Project to be commissioned in 2012 • Focus is on ensuring high impact developments within 150km distance on either side of alignment of DFC • Area under Project Influence is 14% and population is 17% of the Country • Total Population in the Project Influence Area : 178Mn • Total Workers in the Project Influence Area: 70.56Mn As per Census-2001 Uttar Pradesh Rajasthan Gujarat Madhya Pradesh Maharashtra J.N.Port DFC Alignment End Terminal www.NoidaPlots.wordpress.com

4. Alwar Jaipur Jodhpur Bhilwara Kota • Rajasthan: Jaipur, Alwar, Kota, Bhilwara, Jodhpur (Marble, Leather, Textile) Ahmedabad Anand Vadodara Bharuch Surat • Gujarat: Ahmedabad, Vadodara, Anand, Bharuch, Surat (Engineering, Gems & Jewelry, Chemicals) Nashik Pune Mumbai • Maharashtra: Mumbai, Pune, Nashik (Auto/Auto Component, Textile, Pharma, Aluminum) Existing Industrial Belts Ghaziabad Dadri Noida Faridabad • Uttar Pradesh- Noida/ Greater Noida, Ghaziabad (General Manufacturing) • Haryana- Gurgaon, Faridabad, Sonepat (Automobile, Electronics, Handloom) www.NoidaPlots.wordpress.com

5. Vision for DMIC “To create strong economic base with globally competitive environment and state-of-the-art infrastructure to activate local commerce, enhance foreign investments and attain sustainable development” • Delhi-Mumbai Industrial Corridor is conceived to be developed as “Global Manufacturing and Trading Hub” supported by world class infrastructure and enabling policy framework Project Goals • Double employment potential in five years (14.87% CAGR) • Triple industrial output in five years (24.57% CAGR) • Quadruple exports from the region in five years (31.95% CAGR) www.NoidaPlots.wordpress.com

6. Project Objectives • Industrial Infrastructure • Developing new industrial clusters • Upgradation of existing industrial estates/clusters in the corridor • Developing Modern Integrated Agro-Processing Zones with allied infrastructure • Development of IT/ITeS Hubs and other allied infrastructure • Providing efficient logistics chain with multi-modal logistic hubs • Physical Infrastructure • Development of ‘Knowledge Hubs’ with integrated approach • Feeder Road/Rail connectivity to ports, hinterlands and markets; • Development of existing Port infrastructure and Greenfield Ports; • Upgradation/ Modernization of Airports; • Setting up Power Generation Plants with transmission facilities; • Ensuring effective environment protection mechanism • Development of integrated townships www.NoidaPlots.wordpress.com

7. Approach to Development of DMIC • Infrastructure development- key to DMIC instead of additional fiscal or financial incentives • Units coming up would have the advantage of improved infrastructure • A Regional development approach instead of isolated pockets • Brownfield areas rather than greenfield in Phase-1 to ensure better cost effectiveness • Make development more harmonious by emphasizing local skill and agri development www.NoidaPlots.wordpress.com

8. Strategy for Integrated Corridor Development • The development strategy for the DMIC is based on the competitiveness of each of the DMIC states : • Holistic approach adopted to identify High Impact/Market Driven Nodes along the DMIC • Each Node will be self-sustained regions with world class infrastructure and enhanced connectivity to DFC, Ports, and Hinterlands • Market Driven Nodes are proposed to be in two categories • Investment Regions - Approx. 200 sq km Area (Minimum) • Industrial Areas - Approx. 100Sqkm Area (Minimum) • A total of 24 Nodes have been identified in consultation with State Governments : • 11 Investment Regions • 13 Industrial Areas www.NoidaPlots.wordpress.com

9. Strategy for Integrated Corridor Development • Criteria for Selection of Investment Region • Each DMIC State to have at least one node to spread economic benefit • Proximity to major urban agglomerations • Potential for Developing Greenfield Ports (or) Augmentation • Availability of land parcels and established industrial base • Criteria for Selection of Industrial Area: • To take advantage of inherent strengths of specific locations • Mineral Resources • Agriculture • Industrial development, and, • Skilled Human Resource base • To spread the benefits of the corridor the project will also seek to link Under-Developed Regions along the Corridor to Well Developed Regions www.NoidaPlots.wordpress.com

10. Haryana a Haryana Dadri 1 2 3 b Uttar Pradesh Rajasthan c Gujarat f Madhya Pradesh d 6 4 Maharashtra 5 J.N.Port e DFC Alignment Investment Region (Min.200SQKM) Industrial Area (Min.100SQKM) Nodes for Phase-1 Development Short listed Investment Regions: • Dadri-Noida-Ghaziabad (Uttar Pradesh); • Manesar-Bawal Region (Haryana); • Khushkhera-Bhiwadi-Neemrana (Rajasthan); • Bharuch-Dahej (Gujarat); • Igatpuri-Nashik-Sinnar (Maharashtra); • Pitampura-Dhar-Mhow(Madhya Pradesh) Short listed Industrial Areas: • Meerut-Muzaffarpur (Uttar Pradesh) • Faridabad-Palwal (Haryana) • Jaipur-Dausa (Rajasthan); • Vadodara-Ankleshwar (Gujarat); • Dighi Port (Maharashtra); • Neemuch-Nayagaon (Madhya Pradesh) www.NoidaPlots.wordpress.com

11. Nodes for Phase- 2 Development Haryana Haryana 7 Dadri g Investment Regions: • Kundli-Sonepat (Haryana); • Ajmer-Kishangarh (Rajasthan); • Ratlam-Nagda (Madhya Pradesh); • Ahmedabad-Dholera (Gujarat); • Dhule-Nardhanda (Maharashtra) Industrial Areas: • Rewari-Hissar (Haryana); • Rajsamand-Bhilwara (Rajasthan); • Pali-Marwar (Rajasthan); • Surat-Navsari (Gujarat); • Valsad-Umbergaon with Maroli Greenfield Port (Gujarat); • Pune-Khed (Maharashtra); • Shajapur-Dewas (Madhya Pradesh); Uttar Pradesh Rajasthan 8 h i Gujarat m Madhya Pradesh 9 10 j 11 k Maharashtra J.N.Port l DFC Alignment Investment Region (Min.200SQKM) Industrial Area (Min.100SQKM) www.NoidaPlots.wordpress.com

12. Components of Each Industrial Node • Industrial Infrastructure • New Industrial Clusters/ Parks/ SEZs • Upgradation of existing industrial estates/clusters • Modern Integrated Agro-Processing Zones with allied infrastructure • IT/ITES Hubs and other allied infrastructure • Efficient logistics chain with integrated multi-modal logistic hubs • Physical Infrastructure • Knowledge Cities / Skill Development Centers with integrated approach • Augmentation of Existing Port infrastructure & Greenfield Port Development; • Upgradation/ Modernization of Airports; • Power Generation Plants with transmission facilities; • Feeder Road/Rail connectivity to ports, hinterlands and markets; • Dovetailed integrated townships catering to investor countries • Effective Environment Protection Mechanism www.NoidaPlots.wordpress.com

13. Soft Infrastructure for DMIC • Initiatives for Skill Enhancement • Skill Development Centers/ Centers of Excellence planned through out the investment regions/ industrial areas • Streamlined Administrative Procedures • Each Node will contain one or more Special Economic Zones, which are empowered by the Act to provide necessary clearances themselves • Each State Government will constitute an empowered authority for each of the investment region/ industrial area • These authorities to have delegated powers, from State Government, to take decisions locally • Policy Regime for DMIC • Movement of Goods through roads is proposed to be facilitated without interruption by use of IT • A Dialogue to be started with State Transport Ministers for a Unified Policy Regime for uninterrupted and low cost movement of material and efficient • Government of India has already announced Road Map for ‘Goods and Service Tax’ to adopt by 2010 which replaces central and state taxes into a unified tax regime www.NoidaPlots.wordpress.com

14. Key Issues in Project Implementation • The complexity of implementing the DMIC will require rigorous detailing of all aspects of the project prior to implementation : • Engineering • Environmental • Social • Financial • Contractual, etc • The size of the project also emphasizes the need for implementation of project in phases. This will be critical in ensuring its sustainability • Given the involvement of multiple Ministries and multiple state governments an effective framework for co-ordination is critical • The DMIC Project involves an investment of US$ 90 bn with 60-70 different projects. An a priori strategy for the mobilization of finances to cover each phase of the project will also be critical www.NoidaPlots.wordpress.com

15. Four-Tier Implementation Structure • An Apex Authority, Headed by the Finance Minister with concerned Central Ministers and Chief Ministers of respective DMIC States as Members; • A Corporate Entity, referred as DMIC Development Corporation (DMICDC), to coordinate Project Development, Finance and Implementation; • A Program Management Consultant (Joint Consultant) will work under DMICDC for overall planning, monitoring and financial advisory services • State-level Coordination Entity for coordination between DMICDC, various State Govt. Entities and Special Purpose Vehicles (SPVs); • Project specific Special Purpose Vehicles (SPVs) to implement individual project components viz. Industrial Areas/SEZs, Roads, Power, Ports, Airports etc www.NoidaPlots.wordpress.com

16. Implementation Framework DMIC Steering Authority (Headed by Finance Minister, with concerned Central Ministers & Chief Ministers as Members) DMICDC (A Corporate Entity with representation from Central & State Govt. Agencies, FIIs and DFC) Master Development Plan, Techno-Economic Feasibility Studies, Business Plans, Projects Prioritization, Bundling & Unbundling of Projects to Central/Line Ministries & State Govt State-level Coordination Entity/ Nodal Agency Project Specific Special Purpose Companies (SPC) (For both Central & State Govt Projects viz. Ports, Airports, Roads, Industrial Areas, Power etc) Approvals & Clearances (FIPB, NSC, MOEF etc), Monitoring & Commissioning of Projects, Financing Arrangement etc www.NoidaPlots.wordpress.com Project-1 Project-2 Project-3 Project-4

17. Financial Structure of the DMICDC • 49 % equity contributed by GOI • 51 % equity contributed by Financial Institution(s) and other Infrastructure organizations • Loans facilitated by DMICDC – as a pass-through arrangements for specific projects • Project Development Funds contributed by GOI, GOJ and FIs www.NoidaPlots.wordpress.com

18. Project Development Fund (PDF) • Magnitude and importance of Project necessitates creation of Project Development Fund: • Cost of Project development would be substantial • Funding would need to be accessed from variety of sources-Central and State Govt., Indian and Foreign investors, bilateral and multilateral Institutions • Investments to be recovered from PPP projects • USD 250 mn to be raised as Project Development Fund from Govt of India, Japan and FIs • The PDF to be used specifically for all Project Development Activities to reach technical and financial closure • PDF ensures availability of finance to get projects off the ground www.NoidaPlots.wordpress.com

19. Commitment of DMIC States • Each State Government will notify a nodal agency to coordinate with DMICDC, State level agencies, and SPVs • Coordinates implementation of investment regions/ industrial areas in each state; • Assists in acquiring the land necessary for setting up infrastructure, processing and non-processing areas; • Facilitates all clearances required from the State Government • Arrange requisite funding for development of infrastructure, through budgetary resources or by availing existing schemes of GoI • Ensures world class physical infrastructure and utilities, linkages under its jurisdiction within a stipulated time frame after notifying the location www.NoidaPlots.wordpress.com

20. Project Specific SPVs • Implementation of specific components of industrial nodes • Projects to be awarded to operators with all relevant clearances and through a transparent bidding process • Project Operators to raise finances, implement and operate the project • Independent Board of Directors for each SPV • Debts to be raised domestically and externally • Debts could also be raised by DMICDC and passed on to SPVs www.NoidaPlots.wordpress.com

21. Funding Perspectives for DMIC • Project Development Phase : • Estimated Requirement : USD 250 mn • Suggested Structure : Venture Capital Fund • Project Developer : DMICDC • Recovery of Investment : From successful bidders • Contributors : Need for ODA/grants • Project Implementation Phase : • Estimated Requirements : USD 90 bn • Suggested Structure : SPV • Critical Requirement : Long term equity Long term debt/sub-debt Viability Gap Funding Debt Service Reserve www.NoidaPlots.wordpress.com

22. Opportunities in DMIC • EPC/O&M Contracts • Project promotion & equity participation in various implementing SPVs • Providing long-term debt • Industrial Investment (manufacturing & services) • Contribution to PDF on commercial basis www.NoidaPlots.wordpress.com

23. Summary- InfrastructureDevelopment Initiatives in DMIC • Development of 10,000MW Power Generation Capacity • Development of Three Greenfield Ports • Dholera & Maroli in Gujarat, Dighi Port in Maharashtra; • Augmentation of Two Ports (Dahej and Hazira) in Gujarat • Augmentation of Six/Seven Airports • Greater Noida (Uttar Pradesh); Udaipur/ Jodhpur (Rajasthan); • Indore (Madhya Pradesh); Vadodara and Surat (Gujarat); Nashik & Pune (Maharashtra); Air Strips at Dholera & Neemrana • Construction/ Augmentation of 2500km long feeder rail linkages www.NoidaPlots.wordpress.com

24. Summary- InfrastructureDevelopment Initiatives in DMIC • Augmentation/ Construction of 4000km feeder roads (State Highways etc) besides up gradation of National Highways • Construction, Operation and Maintenance of Logistics Hubs, Container Terminals • Development of Industrial Areas, SEZs/ Agro-Processing Hubs • Integrated Townships, IT/ITES Hubs, Biotechnology Parks • Knowledge Cities/ Centers of Excellence/ Skill Development Centers www.NoidaPlots.wordpress.com

25. Thank You www.NoidaPlots.wordpress.com