It is a USD 130 billion mega infrastructure project spanning an overall length of 1483 km across six states has been banking on major investments pouring in the region, including including the financial and technical aids from partner country, Japan. Comprising 11 investment regions and 13 industrial areas, the Delhi-Mumbai Industrial Corridor (DMIC) is the next big thing in terms of infrastructure in the country. At a time when states like Gujarat, which forms 38 per cent of the corridor, are expediting the process of inviting investments, Amitabh Kant, CEO and MD of DMIC Development Corporation talks to Maulik Pathak about what's in store for the project in days ahead:
What is the present status of DMIC? Is the masterplan for the entire project ready?
Japan increased its industrial output 8 fold in 30 years (1955 to 1985 ) and China increased its industrial output more than 10 fold in 27 years (1978 to 2005). If India wants to ahieve 9 per cent GDP for a continuous period, the industrial growth has be at 14 times in about 30 years.
The entire DMIC region has investment potential of USD 130 billion as per perception plan survey by Scott Wilson. India has so far been creating on existing demand. The time has now come to plan for next 30 years now. DMIC is the biggest urbanization project, something that has not happened before in China, Korea or anywhere in the world.
The masterplan of the project will be prepared city or area wise. There is a lot of competition heating up among various states recently on who would be the first to commence.
Phase 1-A includes Ahmedabad-Dholera region in Gujarat and the state has moved ahead of the rest. Maharashtra is close second where work is going on in full speed. MP, Haryana, Rajasthan and UP are also catching up. There will also be six gas fired power projects of 1,000 Mw capacity each along DMIC.
Also, a corporate structure fund is on the cards for those who give up a their land for DMIC. As the value of the region or special investment region (SIR) goes up, the stakeholders will also stand to gain.
Dholera is being developed as a greenfield city. What is the kind of investment that is likely to flow in the region as a result?
A total of 24 nodes have been identified in consultation with six state governments. Dholera is the first city which will be developed in three phases. It is the biggest urban city in the world to be spread in 540 sq km of developed area. Dholera, including the internal and external 'trunk' area, will see about Rs 55-60,000 crore of investment of which Rs 38,000 crore would be on a public private partnership (PPP) basis. The 'trunk' infrastructure will cost around Rs 38,000 crore. The development plan for the project is ready. The state government and the state owned Gujarat Industrial Development Board has taken a lot of initiative in areas like earmarking government land, planning, seismological studies, etc. Apart from Dholera, other cities like Manesar-Bawal in Haryana, Indore-Mhow in Madhya Pradesh, and Dighi and Nasik-Igatpuri in Maharashtra. The first phase of Dholera is likely to be completed in 2016.
The target is to attract 2 million population.
What is the concept behind developing Smart Cities and Smart Communities? How many Smart Cities have been identified?
These cities will be built on the lines of Kita Kyusyu and Yokohoma of Japan. They will be made using smart technology, smart grids, smart water management and so on. There will be next generation energy management systems with zero emission industrial parks. In the mid seventies Kita Kyusyu was the most polluted city in the world. Using the 'Smart City' concept, the Japanese have today turned it into one of the best cities. They have succeeded in creating waste management systems. Even automobiles are recycled every 12 years here. We will manage pollution while building cities itself.
We have zeroed in on four Smart Cities so far which will be developed by a consortium of Japanese companies. Two of these Smart Cities will come up in Gujarat, one will be in Maharashtra and one will be in Haryana. A consortium led by Hitachi and including Itochu, Tokyo Electric Power Company and Kitakyushu City will study Dahej while a consortium led by Mitsubishi Heavy Industries will supervise Changodar. The Maneswar Bawal region of Haryana will be looked after by a consortium led by Toshiba with Tokyo Gas as one of the three partners. The Shendra industrial region in Maharastra will be conceptualised by a consortium led by JGC Corp including Mitsubishi Corporation and Yokohama City as partners.
How many Japanese companies have shown interest in DMIC. What lies in store for Indian players on DMIC?
All the top 15 Japanese companies have shown interest in entering into DMIC. However, there will be transparent bidding process for various projects wherein the Indian players can also participate. Japan Bank for International Co-operation (JBIC) has set up a $ 75 million project development fund for DMIC. So far, the Japanese companies have been investing in the northern region. With DMIC, we hope to bring in more Japanese firms in the western region of Maharasthra and Gujarat.
