If manufacturing is India’s (supposed) next big hope, then the Delhi–Mumbai Industrial Corridor is its rousing, inspirational, crowd-pleasing theme song. With the stated goal of making it a ‘global manufacturing and trading hub’, the project is meant to showcase India’s ability in planned urbanisation and world-class manufacturing and services. DMIC is easily the largest infrastructure project to be undertaken in India – at a cost of $100 billion and spanning the states of Delhi, Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat, and Maharashtra, it aims to create infrastructure of the kind rarely seen in India, set up world-class factories and logistics centres, and establish 24 smart cities (seven in the first phase alone) with cutting-edge technology, connectivity across rail, road, port and air, and uninterrupted power. Also on the agenda are skill development of the local populace and generation of three million job opportunities (two million in the manufacturing/processing sectors). The dedicated freight corridor (DFC) covering a length of nearly 1,500 km will support high-speed train connectivity and will run almost parallel to the Delhi–Mumbai Golden Quadrilateral National Highway. Initially, seven nodes (investment regions, IR, and industrial areas IA) in the DMIC states have been taken up for development. In total, 24 such nodes are envisaged which are meant to facilitate business generation with high-quality infrastructure. The corridor starts at Tughlakabad and (now infamous) Dadri in Delhi NCR and ends at Jawaharlal Nehru Port at Mumbai. The project defines an investment region as a specifically delineated industrial region with a minimum area of around 200 square kilometres; an industrial area is for the establishment of manufacturing facilities for domestic and export-led production with a minimum area of around 100 square kilometres. Some of the projects include the Dholera investment region in Gujarat, a model solar power project in Neemrana, Rajasthan, and integrated industrial townships in Greater Noida and Vikram Udyogpuri (Madhya Pradesh). Planned urbanisation is a major focus area of the project – for reference, India’s urban population is expected to rise to 36 per cent in 2026, roughly translating into 590 million (greater than the current combined population of the United States and Indonesia). Note that the dedicated freight corridor is being constructed and will be operated by Dedicated Freight Corridor Corporation of India (DFCCIL), an SPV that is controlled by the railways ministry. Officially launched in 2006 by the erstwhile UPA government, the stake in DMIC Development Corporation (DMICDC) – the implementation agency – is divided amongst the Indian government (49 per cent), Japan Bank for International Cooperation (26 per cent), and government financial institutions (the remainder). The government of Japan, aside from providing state-of-the-art technology and expertise to the project, has also pledged financial support to the extent of $4.5 billion in the first phase at a nominal rate of 0.1 per cent – this, together with the $4.5 billion to be provided by the Indian government, will cover for basic infrastructure such as roads, water pipelines, sewage lines, and waste collection. The 90 per cent of the remaining funds is slated to come from private players, ostensibly due to the increased value of the land post the initial development of the infrastructure – a significantly mammoth task and not without a few sceptics. Understandably, the affected states are already jousting for potential investors. For instance, the Greater Noida website encourages investors to put their money in the UP region of DMIC touting its ‘locational advantages’, ‘top-class facilities’, and ‘attractive policies and projects’, among other such priceless qualities. The exact mechanism of these projections is debatable, information about this mammoth project is scarce, and the desirability and feasibility of this project hasn’t been put to even a farcical public debate. As succinctly articulated by this observer, ‘(DMIC) is also a great example of a project where a study of facts, numbers, statistics and projections are increasingly futile as they are constantly shifting.’ Still, the most amusing aspect of the project is that DMICDC operates out of a hotel room in Hotel Ashok in New Delhi, which seems incongruous with everything that this project stands for – size and bombast. But one can still enjoy this uplifting video created by them. - See more at: http://causebecause.com/news-detail.php?NewsID=766#sthash.m6fqlrC1.dpuf |