DMIC – Blueprint for Industrial Corridors
Amidst the prevailing gloom in the economy, from the CAD distress to the currency depreciation, some measures by the government have definitely signaled a positive intent towards a tangible push to industrial growth. The steady pace attained by DMIC (Delhi Mumbai Industrial Corridor) is one such area where administration is clearing projects and foreign investments are flowing in, usually the right recipe for a structural change. The scale of the project is so large that it transgresses into 6 states and with it comes their own interpretation of the law and speed of execution. For it also provides for holistic planning & development of cities, from a purely infrastructure perspective, it is on par, if not ahead of the golden quadrilateral project in terms of the complexity. As recently, the DMIC Trust has given clearance for implementation of six major projects entailing an investment of around Rs.1.10 lakh crore, let’s take a look at its various facets and how it will form a blueprint of more such entities.
What is DMIC?
Delhi-Mumbai Industrial Corridor is a mega infra-structure project (~USD 90 billion) with the financial & technical aids from Japan, covering an overall length of 1483 KMs between Delhi and Mumbai.
MOU was signed in December 2006 between Vice Minister, Ministry of Economy, Trade and Industry (METI) of Government of Japan and Secretary, Department of Industrial Policy & Promotion (DIPP). A Final Project Concept was presented to both the Prime Ministers during Premier Abe’s visit to India in August 2007.
The project is for establishing Multi-modal High Axle Load Dedicated Freight Corridor (DFC) between Delhi and Mumbai and passing through the six States – U.P, NCR of Delhi, Haryana, Rajasthan, Gujarat and Maharashtra, with end terminals at Dadri in the National Capital Region of Delhi and Jawaharlal Nehru Port near Mumbai.
Objective of DMIC
Project goals for DMIC are:
o Double employment potential in five years (14.87% CAGR)
o Triple industrial output in five years (24.57% CAGR)
o Quadruple exports from the region in five years (31.95% CAGR)
It is conceived 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’. It will augment and create social and physical infrastructure on the route, spurring economic growth of the region.
The project will see major expansion of Infrastructure and Industry – including industrial clusters and rail, road, port, air connectivity – in the states along the route of the Corridor.
Composition of the DFC
The Size and Scope?
Modalities?
Characteristics of DMIC?
Governance of DMIC?
What next? Chennai-Bangalore Industrial Corridor? Eastern India Industrial Corridor?
What is ‘Viability Gap Funding’?
To know the answers to the above questions and to read the full article, which by the way, students refer to as “better content than I have seen anywhere else”, continue to this link.