Department of Industrial Policy & Promotion
MInistry of Commerce & Industry

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 seven Union Ministers/Dy. Chairperson, Planning Commission/Chief Ministers of six States as Members to give overall guidance, planning and approvals. Four more Union Ministers are Invitees.

Ø      Similar monitoring mechanism at State level in place.

II  DMICDC

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 MEETINGS 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

·  Shri Talleen Kumar, 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, Executive Chairman, IL&FS Waste Management and Urban Services Ltd.

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

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

Ø      Fourteen meetings of the Board of Directors of DMICDC 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.

• Twelfth meeting held on 23^rd June 2010 and the Board has taken note of the reconstitution of the Audit Committee as also progress of the project.

• Thirteenth meeting held on 5^th August 2010.  The Board approved the annual account of the company and passed a resolution to increase the Authorized Share Capital of the company subject to consent of the members in the Annual General Meeting.

• Fourteenth meeting held on 27^th December, 2010.

III  DMIC - PDF

DMICDC will have a Project Development Fund (PDF) referred to as ‘DMIC - PDF’.   An amount of Rs. 330 crore has been allocated for the PDF under the 11^th Plan.  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.

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 along with 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 crore (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. 

An amount of Rs.132.00 crore has been released by the Government of India since 2008-09 till date to the DMICDC for project development activities.

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 Vice-Minister of the Ministry of Economy, Trade & Industry (METI), Government of Japan are the Co-Chairmen.

Ø      Task Force has held nine meetings – five in India and four 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 investors from India and Japan evinced their interest regarding investing in the project.

Ø      Sixth and seventh meeting were 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.  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. 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.

Ø      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 has appointed an Indian consultant to prepare the baseline database to facilitate the Japanese in their work in India.  MoUs between DMICDC, Japanese consortia and state governments signed on 30^th April 2010.  Updated progress of the four pilot project is given in the DMU report.

Ø      Eighth meeting of the Task Force held on 16^th June 2010 in Tokyo.  Both sides agreed to examine the Financing Scheme for DMIC projects and operationalizing of PDF at a technical level and report in the next meeting of Task Force.  The Japanese side announced inclusion of another Early Bird Project.

Ø      Ninth meeting of the Task Force held on 21^st January, 2011 in New Delhi.

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 six Early Bird Projects. Annexure V

APPOINTMENT OF CONSULTANTS AND SUBMISSION OF REPORTS

Ø      Details of appointment of Consultants and updated progress of the project in each investment node is given in the DMU Report.

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.  First meeting of the Task Force held on 5^th May 2010.

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.  On 31^st July 2009, DIPP forwarded the revised timelines to PMO.

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 decided in the meeting, Draft Composition and TORs for Water Committee for DMIC region forwarded to the PMO on 9^th December 2009 with the approval of Secretary, DIPP.  On further directions from the PMO, the Draft Composition and TORs for Water Committee forwarded on 18^th January 2010 to the Secretary, Ministry of Water Resources for concurrence.  As decided in the 3^rd meeting of the Monitoring Committee, the Department of Industrial Policy and Promotion, with the concurrence of the Ministry of Water Resources, has constituted a Committee on 13^th August 2010 under the chairmanship of Secretary, Ministry of Water Resources to look into the availability of water in the DMIC region.  1^st meeting of the Committee held on 16^th September 2010.

Ø       As directed in the 2^nd meeting, revised timelines for DMIC project as approved by the Hon’ble CIM sent to PMO on 6^th April 2010 Annexure VI

Ø      3^rd meeting of the Monitoring Committee held on 22^nd June 2010 and following decisions taken in the meeting:

o       DIPP to move a Cabinet Note for allocation of funds for the first 6 nodes of DMIC to finance the development of trunk infrastructure projects at these nodes.

o       A Committee under Secretary, Water Resources comprising Secretary, DIPP, CEO&MD, DMICDC and concerned Secretaries of DMIC States to be constituted and Secretary, Water Resources to convene a meeting to find solutions to the issue of water availability at the DMIC nodes, especially in Haryana and Rajasthan.

o       Secretary, DIPP and CEO&MD, DMICDC to hold a meeting with Secretary PNG for allocation of gas for the DMIC Power projects.

o       Ministry of Railways to initiate action for the development of spurs to the DMIC nodes.  Chairman, Railway Board to coordinate and convene a meeting in this regard.

o       The requirement of expressways to the new cities to be taken up by DIPP on priority with Ministry of Road Transport and Highways and the Planning Commission.

§         In pursuance of the decisions taken in the meetings of the Monitoring Committee for the DMIC Project held on 18^th November 2009 and 22^nd June 2010, the Department of Industrial Policy and Promotion, with the concurrence of the Ministry of Water Resources, has constituted a Committee on 13^th August 2010 under the chairmanship of Secretary, Ministry of Water Resources to look into the availability of water in the DMIC region.  First meeting of the Committee held on 16^th September 2010.

Ø      4^th meeting of the Committee was held on 1^st December 2010.  As decided in the meeting, the Department of Industrial Policy and Promotion has circulated a Cabinet Note on the financial and Institutional structure for the development of new industrial cities in the DMIC on 8^th December, 2010 for inter-Ministerial consultations.

DELIVERY MONITORING 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. Proforma for Reporting to the Delivery Monitoring Unit.

Ø      As directed by the PMO, Secretary, DIPP apprises Principal Secretary to PM, every quarter demi-officially, giving assessment of the progress of the project in terms of the outcomes/ targets and timeframes and specifically bringing out issues that may require attention or resolution at a higher level.

 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:

i)                    Development of the Delhi Mumbai Industrial Corridor

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

iii)                Organization structure including setting up of an Apex Authority chaired by the Union Finance Minister

iv)                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