I  ABOUT DMIC

Objectives 

Ø   The DMIC seeks 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. 

Ø   DMIC proposed to be developed on either side of the Western Dedicated Freight Corridor of Ministry of Railways within a band of 150-200 kms, as a Model Industrial Corridor of international standards with emphasis on expanding the manufacturing and services base and develop DMIC as the ‘Global Manufacturing and Trading Hub’.

Ø   The Project aims at doubling the employment potential, tripling the industrial output and quadrupling exports from the region, in the first five years. 

Apex Monitoring Authority Annexure-I | Annexure-II

Ø   Apex Monitoring Authority set up on 11^th September 2007 with the Finance Minister as Chairperson and five Union Ministers/Dy. Chairperson, Planning Commission/Chief Ministers of six States as Members to give overall guidance, planning and approvals. Five more Union Ministers are Invitees.

Ø   Similar monitoring mechanism at State level in place.

II  DMICDC Ltd.

Ø   Delhi – Mumbai Industrial Corridor Development Corporation Ltd. (DMICDC), the central SPV incorporated on 7th January, 2008 with authorized equity base of Rs.10 Crores (49% equity participation by GoI, 41% by IL&FS and 10% by IDFC). 

Ø   DMICDC envisaged for project development, coordinating the implementation of the numerous projects and also raising finances, wherever needed.

Ø   Proposal to offer 24% of GoI equity @ 4% to each of the six DMIC States, thus diluting GoI equity from 49% to 25% under consideration.

Project Management Consultant of  DMICDC

Ø      M/s IL&FS Infrastructure Development Corporation Limited (IIDC) appointed as Project Management Consultant (PMC) to DMICDC on 28.1.2008.

Board Meeting of DMICDC

Ø   Secretary, DIPP is ex-officio Chairman of DMICDC.  Shri Amitabh Kant, IAS (KL: 1980) has joined DMICDC on 21^st August 2009 as its first Chief Executive Officer.
 

Ø      The Directors of the Board consist of the following:

·  Shri R.P. Singh, Secretary, DIPP

·  Ms. Anjali Prasad, Joint Secretary, DIPP

·  Shri N.K. Shukla, Executive Director (Perspective Planning), Railway Board.

·  Dr.Amit Mitra, Secretary General, FICCI

·  Shri Jai Prakash Batra, Ex Chairman, Railway Board

·  Shri Hari Sankaran, MD&CEO, IL&FS Infrastructure Development Corporation Limited

·  Shri Pradeep Puri, President and CEO, Noida Toll Bridge Co. Ltd.

·  Shri K. Ramchand, Chief of Operations-Infrastructure, IL&FS Infrastructure Development Corporation Limited

·  Shri  Athar Shahab, Dy. Managing Director, IDFC Projects Ltd.

Ø   Eleven Board meetings held so far and important decisions taken are:-

• First Board Meeting held on 28th January, 2008. M/s IL&FS Infrastructure Development Corporation Limited (IIDC) appointed as Project Management Consultant (PMC) to DMICDC.
• Second Board Meeting held on 16^th April 2008.  Board reviewed the progress of project development activity, status of establishment of ‘Project Development Fund’ and selection process to appoint consultants for Phase-1A activities. 
• Third Board Meeting held on 6^th June, 2008 wherein the revised RfP and further activities of Phase-1A were discussed and a committee was formed for technical and financial evaluation of the bids received from the short listed bidders.
• Fourth Board Meeting held on 17^th September 2008 and Consultancy for Master Planning of the entire DMIC Region awarded.  
• Fifth Board Meeting held on 31^st October 2008 and Consultancy for Master Planning of individual investment nodes in Gujarat and Madhya Pradesh awarded.

• Sixth Board Meeting held on 22^nd January 2009 and Consultancy for Master Planning of individual investment node in Haryana awarded.  All the three Master Planning Consultants made power point presentations appraising the progress of DMIC project in their respective regions.
• Seventh Board Meeting held on 16^th April 2009 considered the CVs received for the post of Chief Executive of DMICDC and none found suitable to be short listed.  The Board resolved that an officer of the All India/ Central Service at the level of Additional Secretary/ Senior Joint Secretary on deputation from the Government would be most suited at this early stage of the development of the project since the job requires close interaction with State Governments.
• Eighth Board Meeting held on 4^th June 2009 approved the Annual Accounts of DMICDC for the financial year 2008-09.
• Ninth Board Meeting held on 29^th September 2009 wherein presentations were made by M/s Halcrow Consulting on the Draft Concept Plan for Dholera Special Investment Region and Mega Industrial Park (Early Bird Project).  The Board also took note of the Term sheet submitted by the JBIC. 
• Tenth Board Meeting held on 21^st December 2009.  The Board approved the Perspective Plan for overall DMIC Region and the projects to be undertaken for pre-feasibility studies as part of Perspective Plan.  Board also approved initiating project development activities of six power projects across various States in the DMIC region.
• Eleventh meeting held on 29^th March 2010 and the Board reviewed the progress of planning of investment nodes in Gujarat, MP, Haryana and Maharashtra.  The Board also approved the memorandum of cooperation proposed to be signed with GAIL (India) Ltd.

III  DMIC - PDF

DMICDC will have a Project Development Fund (PDF) referred to as ‘DMIC - PDF’. The initial size of the Fund as approved by the Government was to be INR 1000 Crore (to be contributed equally by GoI and Govt. of Japan).  In view of the 11^th Plan Outlay now fixed at Rs. 330 crore, the Japanese share in PDF amounting to US $ 75 Million is proposed to be secured as commercial loan from Japan Bank for International Cooperation (JBIC), the international wing of Japan Finance Corporation handling commercial operations.  The PDF would have two separate accounts, one PDF – Japanese Account and other PDF - Indian Account. The Fund will be established within the ambit of DMICDC and thus will not have separate legal status. 

It is proposed to secure Japanese loan for DMIC-PDF through India Infrastructure Finance Company Limited (IIFCL) by way of a Loan Agreement (as per standard terms and conditions and subject to negotiation) to be executed between IIFCL and JBIC and the Ministry of Finance, Government of India will provide sovereign guarantee to this loan.  DMICDC will be a sub-borrower of the loan from IIFCL through a separate loan agreement and will accordingly pay back interest and Principal alongwith other dues to IIFCL as per the terms of loan agreement.  .

The PDF will initially finance the preparation of overall development (popularly known as Master Plans) and Feasibility Studies of identified projects therein which will be subsequently recovered by apportioning on to respective projects that would be developed by the private sector. Thus the PDF would be replenished for investment on developing other such projects.

Both Indian and Japanese Accounts of DMIC-PDF would be set up as typical Corporate (Current) Accounts of DMICDC and the prevailing norms for Corporate Accounts as per Banking Regulations of India would be applicable.

The Advisory/Retainership Fee for the PMC will be paid through PDF on monthly/mile stone basis.

Funds under both the Indian and Japanese Accounts of PDF, subjected to JETRO’s recommendation of ‘Japanese interest’ for availing funds from Japanese Account, would be used for :

·   Payment for the project preparatory/development expenses (Master Planning/Feasibility Studies/Environment Impact Assessment Studies/other technical studies, preparation of tender documents, Bid Process Management for selection of Consultants/Entrepreneurs, legal fees for setting up special purpose companies etc.) incurred up to the stage of selecting a successful developer for specific Greenfield and Brownfield industrial, physical and social infrastructure projects in the DMIC.

·    Payment to PMC and other external consultants.

·    In addition, the funds under PDF will cater to all expenses related to the setting up of the PDF, syndicating contributions to the PDF, as well as its operations, including but not limited to fees and expenses of custodians, paying agent, registrar, counsel and independent accountants, and any taxes, fees or other government charges levied against the Fund.

Funds under ‘DMIC PDF – Japanese Account’ shall only be used for payment towards project preparatory/development expenses, which is referred to in the first item above.  

EFC Approval

The Expenditure Finance Committee in its meeting held on 7^th July 2008 recommended allocation of Rs.100 crores (to be contributed equally by Government of India and Government of Japan) during 2008-09 for the DMIC Project.  The EFC recommendation has been approved by the Union Minister for Commerce and Industry and the Union Finance Minister.  The entire budget allocation of Rs.50 crores for 2008 – 09 was released to DMICDC

Another meeting of EFC held under the chairmanship of Secretary, DIPP on 24^th December 2009 which recommended allocation of additional amount of Rs.93 Crore for carrying out the remaining Phase 1A project development activities till March 2011 and delinking of Japanese contribution from the purview of EFC since the Japanese contribution will be limited only to the specific Japanese projects and will be regulated by JETRO guidelines.  The EFC recommendation has been approved by the Union Minister for Commerce and Industry and the Union Finance Minister. 

Japanese Contribution - JBIC LOAN

Ø   MoU between JBIC and IIFCL/DMICDC signed during Hon’ble Prime Minister’s visit to Japan on 21^st October 2008 to facilitate further cooperation in the DMIC project including untied loan for the project Annexure III 

Ø   The terms and conditions of loan, loan agreement and guarantee form  examined in consultation with the MoF/MEA/MoLaw.

Ø   First Round of Negotiations with JBIC officials held on 6^th October 2008 in Delhi.  Second Round of Negotiations held on 10^th & 11^th November 2008 in Delhi.  Japanese side requested to make changes in Loan Agreement, Form of Guarantee and also requested to forward the Term Sheet.  An inter-departmental meeting held on 22^nd December 2008 with representatives of Finance/Law/IIFCL to concretize GoI views on all outstanding issues. Third Round of Negotiations held on 16^th July 2009.  Fourth Round of Negotiations held on 24/25 September 2009 and the Japanese side requested to alter some commercial terms of the loan.  Fifth Round of Negotiations held on 25/26 November 2009 to finalize the loan documents. 

Ø      Loan Agreement between IIFCL and JBIC signed on 28^th December 2009 along with sovereign guarantee from Government of India (Ministry of Finance).

IV  TASK FORCE

Ø   Task Force set up under MoU between Ministry of Commerce & Industry, GoI and its Japanese Counterpart to assist in DMIC planning.  Secretary, DIPP and the Minister for Economy, Trade & Industry (METI), Government of Japan are the Co-Chairmen.

Ø   Task Force has held seven meetings – four in India and three in Japan and provided useful inputs for the project.

Ø   First three meetings held before July 2007 were helpful in finalizing the Concept Paper.

Ø   Fourth meeting was held in New Delhi in October 2007 and fifth meeting held in Tokyo in February 2009 where the interested investors from India and Japan evinced their interest of investing in the project.

Ø   Sixth and seventh meeting was held in New Delhi on 13^th July 2009 and 24^th December 2009 respectively where the progress of the Project was reviewed and the future course of action discussed. 

Ø      As decided in the 6^th meeting of the Indo-Japan Task Force held in July 2009, the following action have been taken:

o    A JETRO Expert has been posted in DMICDC w.e.f 22^nd October 2009 to provide technical assistance and he will be in place till the end of February 2010. DMICDC has signed an MoU with JETRO.

o    The Association for Overseas Technical Scholarship (AOTS) under the Ministry of Economy, Trade and Industry (METI), Government of Japan has organized a Training Programme on Trade and Investment Promotion for India in Tokyo for senior officials from DMIC and Nodal Agencies of the DMIC States from 30^th November to 4^th December 2009.

o    On 28^th December 2009, DMICDC has signed an MoU with JETRO on “Development of Smart Communities and Eco-friendly Townships”.  Four projects in the following regions/nodes, Manesar-Bawal region, Nashik-Sinnar Region and Dahej & Changodar Regions, identified for proposed pilot feasibility studies.  Japanese consultants for each of the States of Haryana, Maharashtra and Gujarat have been appointed by METI.  DMICDC would appoint an Indian consultant shortly to prepare the baseline database to facilitate the Japanese in their work in India.  MoUs between DMICDC, Japanese consortia and state governments proposed to be signed on 30^th April 2010.

 

V  NEWS & EVENTS

MOUs Signed by DMICDC with the States

Ø   DMICDC has signed MoUs with all the six DMIC States detailed as follows:  with the State Government of Gujarat on 25^th July, 2008, with the Government of Madhya Pradesh on 26^th August, 2008, with the Government of Haryana on 3^rd October 2008, with the Government of Rajasthan on 20^th February 2009, with the Government of Maharashtra on 18^th August 2009 and with the Government of Uttar Pradesh on 30^th December 2009, for preparation of perspective and development plan for each Node jointly. 

Early Bird Projects

Ø      Early bird infrastructure projects finalized for all the DMIC States.  Annexure IV

Ø      The Japanese side also announced five Early Bird Projects during the visit of Hon’ble Prime Minister to Japan in October 2008 Annexure V

Appointment of Consultants and Submission of Reports 
 

Ø   Consultancy for preparation of Perspective Plan of the entire DMIC region awarded to M/s Scott Wilson in October 2008.  Perspective Plan for overall DMIC Region completed.  Consultants working on the concept plan for greenfield integrated township in the Nashik region and feasibility studies for two expressways. Site survey conducted by the consultants for greenfield integrated township and approval of state government is under process.

Ø   Power Projects:  Inception Reports for all the six projects submitted by the Consultant.  Topography and contour surveys completed.  Environment impact assessment studies at project sites and work for preparation of detailed project reports initiated.  Discussions with GAIL for supply of gas under process.  Draft memorandum of cooperation with GAIL finalized.

Ø   Consultancy for preparation of Development Plan of Ahmedabad-Dholera Investment Region in Gujarat awarded to M/s Halcrow in October 2008.   Reports on Draft Development Plan of the Gujarat IR, Concept Master Plan for Green Field Integrated Industrial Township and Pre feasibility study for industrial worker housing scheme project submitted by the consultants being reviewed by the State Government.  Pre-feasibility report on assessment of renewable energy on PPP mode submitted by the consultants.  Pre-feasibility studies of the remaining three projects are under finalization.   Final report on techno-economic feasibility of Early Bird Project (EBP), Mega Industrial Park at Dholera is being finalized in consultation with the State Government.

Ø   Consultancy for preparation of Development Plan of Pitampura-Dhar-Mhow Investment Region in Madhya Pradesh awarded to M/s Lea Associates South Asia Pvt. Ltd. in November 2008.  Concept Plan finalized.  Pre-feasibility studies for all the eight projects submitted by the consultant.  Master plan for green field integrated township at Pithampur industrial area submitted by the consultants.  Final report of 3 EBPs namely Knowledge City, Economic Corridor and Multi Modal Logistics Hub approved by the State Government.  Final report of water supply and waste water management submitted by the consultants being reviewed by the State Government. 

Ø   Consultancy for preparation of Development Plan of Manesar-Bawal Investment Region in Haryana awarded to M/s Jurong Consultants India Pvt. Ltd.   Delineation of IR finalized.  Committee constituted by the State Government to address the issue of water availability for the IR.  Feasibility study of Water Project for IR initiated.  Detailed route and other surveys conducted for traffic assessment for Mass Rapid Transport System.  Consultant working on route alignment in consultation with the State Govt.  Demand Assessment Reports of the EBPs, Integrated Multi Modal Logistics Hub at Rewari and Exhibition and Convention Center (ECC) at Manesar approved by the State Government.  Site for IMLH finalized by HSIIDC in consultation with DFCCIL.  Concept Note highlighting financial structuring options for the EBP on ECC submitted by the Consultant.

Ø     Consultancy for preparation of Development Plan for Igatpuri-Nashik-Sinnar Investment Region and Dighi Port Industrial Area in Maharashtra awarded to M/s AECOM in January 2010.  Area delineation, market analysis and infrastructure gap assessment reports submitted by the consultants are being reviewed by the DMICDC and state government.

Ø    Consultancy for preparation of Development Plan of Kushkhera-Bhiwadi-Neemrana Investment Region of Rajasthan awarded to M/s Kuiper Compagnons BV on 14^th April 2010.

Ø   Consultancy for preparation of Development Plan of Dadri-Noida-Ghaziabad Investment Region of Uttar Pradesh awarded to M/s Halcrow on 14^th April 2010.

Ø   In the meeting held on 9^th January 2010 between the Union Minister of Commerce & Industry and Chief Minister, Rajasthan, it was decided to develop a “National Manufacturing & Investment Zone” (NMIZ) as an integral component of DMIC Project.  A Task Force constituted on 27^th January 2010 to facilitate the implementation of NMIZ. 

Monitoring Committee

Ø   PMO has constituted a Monitoring Committee on 5^th June 2009 to monitor the progress of DMIC and DFC Projects under the Chairmanship of Principal Secretary to PM and Chairman, Railway Board, Foreign Secretary, Finance Secretary and Secretary, DIPP are its members.  Chief Secretaries of the participating states in the DMIC would be invited as and when required.

Ø   1^st Meeting held on 29^th June 2009.  DIPP was directed to send revised timelines with the approval of Hon’ble Minister. 

Ø   On 31^st July 2009, DIPP forwarded the revised timelines to PMO  Annexure VI

Ø   2^nd meeting of Monitoring Committee for DMIC Project held under the chairmanship of Principal Secretary to PM on 18^th November 2009. 

Ø   As directed by the Committee, revised timelines for DMIC project as approved by the Hon’ble CIM sent to PMO on 6^th April 2010 Annexure A

Delivery Moniroting Unit

Ø    Prime Minister’s Office has notified on 7^th July 2009 the setting up of a Delivery Monitoring Unit in PMO to review a select number of flagship programmes/ initiatives/ iconic projects and one of the projects listed being the “Delhi – Mumbai Industrial Corridor (DMIC) Project”.

Ø    As desired by PMO, the “Proforma for Reporting to the Delivery Monitoring Unit” giving current status of the project is being uploaded regularly on the website of DIPP.

 VI  PAST ACTIVITIES

Ø    MOU signed between Government of India and Government of Japan during Hon’ble Prime Minister’s visit to Tokyo in December 2006 to promote investments and explore opportunities for mutual cooperation. Annexure VII

Ø   IL&FS identified and awarded the work of preparing Concept Report and the Report was ready by the end of July 2007

Ø    Government of India accorded ‘in principle’ approval on 16^th August 2007 to the following proposals in regard to the Project outline:

1. Development of the Delhi Mumbai Industrial Corridor

2. Coverage of Investment Regions & Industrial Areas in Phase I of DMIC project.

3. Organization structure including setting up of an Apex Authority chaired by the Union Finance Minister

4. Formation of Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) for which Deptt. Of Industrial Policy & Promotion will initiate immediate action.

Ø      The Project Influence Area of DMIC covers parts of the States of Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.

Ø      The Project is proposed to be developed in two phases.  Phase I of the project is planned to be completed by 2013.  Phase II is planned to be completed by      2018.

Ø      6 Investment Regions and 6 Industrial Areas (listed below) proposed 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) (Subsequently, on Gujarat Government’s request this Region is replaced with Ahmedabad-Dholera Investment Region, subject to the approval of Apex Monitoring Authority)

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

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

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.

Ø      Following 12 nodes 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