Dmic Ppt

Haryana Haryana Rajasthan

Gujarat

Dadri Uttar Pradesh

Madhya Pradesh Maharashtra

J.N.Port

Introduction • Government of India has announced for establishing the Dedicated Freight Corridor between Delhi and Mumbai, covering an overall length of 1483km and passing thru the States of 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. • This Dedicated Freight Corridor offers high-speed connectivity for High Axle Load Wagons (25 Tonne) of Double Stacked Container Trains supported by high power locomotives. • The Delhi- Mumbai leg of the Golden Quadrilateral National Highway also runs almost parallel to the Freight Corridor.

What is Corridor??? • Corridor is actually a development-axis, which connects economic poles in combination with efficient traffic flow. • The development takes place at those locations where there is strong economic dynamic interaction. • It focuses on balanced urbanization and a strengthening of the open lands.

Types of Corridor Point-to-Point: Such type of Corridor directly connects the two hubs. Moreover, if a freight corridor is built in point-to-point routes, it requires heavy haul traffic to sustain. Fixed Routing Corridor: A service that follows a specified route of travel with identified stops for passengers and an established schedule; regular-route transit. Flexible Routing: This type of corridor offers a flexibility of route to move which also makes them cost intensive.

What is Industrial Corridor??? Industrial Corridor can be defined as development of the Industries along the transport Corridor or proposal of the Transport corridor to facilitate the movement of Goods from these industries. The basic rationale of an Industrial corridor is that it should have effective integration between the industries and the infrastructure Benefits • Facilitating closer economic integration • Improving transit transport efficiency • Harnessing latent economic competitiveness • Promoting regional trade and investment • Promoting and strengthening partnerships • Improving the overall quality of life.

Overview • • •

• • •

Government of India initiated the development of DMIC along the Dedicated Freight Corridor (DFC) to optimize on the connectivity offered MOU relating to the project was signed between GOI and Japan in December, 2006 to create the framework for mutual cooperation At that instance, an Inter-Ministerial Group was formed to evolve the Project Outline : ▫ GOI appointed IL&FS Infrastructure Development Corporation in March, 2007 to detail the project concept ▫ Pursuant to discussions with Central & State Government agencies, IL&FS have since submitted their Report First Taskforce Meeting held at Tokyo on 25th May, 2007 Second Task Force Meeting held at New Delhi on July 02, 2007 Third and Final Task Force Meeting held at Tokyo on July 23, 2007 to finalize the Concept Paper

Delhi-Mumbai Industrial Corridor (DMIC) Haryana Dadri Haryana Rajasthan



Uttar Pradesh 

Gujarat Madhya Pradesh

DFC Alignment End Terminal

Focus is on ensuring high impact developments within 150km distance on either side of alignment of DFC



Area under Project Influence is 14% and population is 17% of the Country



Total Population in the Project Influence Area : 178Mn



Total Workers in the Project Influence Area: 70.56Mn

Maharashtra J.N.Port

The 1483-km long DFC Project to be commissioned in 2012

As per Census-2001

Ghaziabad Dadri Noida Faridabad

Alwar

Jaipur Jodhpur

Bhilwara Kota

Industrial Belts Uttar Pradesh- Noida/ Greater Noida, Ghaziabad (General Manufacturing)  Haryana- Gurgaon, Faridabad, Sonepat (Automobile, Electronics, Handloom) 



Ahmedabad Anand Vadodara Bharuch Surat



Gujarat: Ahmedabad, Vadodara, Anand, Bharuch, Surat (Engineering, Gems & Jewelry, Chemicals)



Maharashtra: Mumbai, Pune, Nashik (Auto/Auto Component, Textile, Pharma, Aluminum)

Nashik

Mumbai

Pune

Rajasthan: Jaipur, Alwar, Kota, Bhilwara, Jodhpur (Marble, Leather, Textile)

Vision for DMIC “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”  Delhi-Mumbai Industrial Corridor is conceived to be developed as “Global Manufacturing and Trading Hub” supported by world class infrastructure and enabling policy framework Project Goals  Double employment potential in five years (14.87% CAGR)  Triple industrial output in five years (24.57% CAGR)  Quadruple exports from the region in five years (31.95% CAGR)

Project Objectives 

Industrial Infrastructure  Developing new industrial clusters  Up gradation of existing industrial estates/clusters in the corridor  Developing Modern Integrated Agro-Processing Zones with allied infrastructure  Development of IT/ITeS Hubs and other allied infrastructure  Providing efficient logistics chain with multi-modal logistic hubs



Physical Infrastructure  Development of ‘Knowledge Hubs’ with integrated approach  Feeder Road/Rail connectivity to ports, hinterlands and markets;  Development of existing Port infrastructure and Greenfield Ports;  Up gradation/ Modernization of Airports;  Setting up Power Generation Plants with transmission facilities;  Ensuring effective environment protection mechanism  Development of integrated townships

Strategy for Integrated Corridor Development • The development strategy for the DMIC is based on the competitiveness of each of the DMIC states : ▫ Holistic approach adopted to identify High Impact/Market Driven Nodes along the DMIC ▫ Each Node will be self-sustained regions with world class infrastructure and enhanced connectivity to DFC, Ports, and Hinterlands • Market Driven Nodes are proposed to be in two categories ▫ Investment Regions Approx. 200 sq km Area (Minimum) ▫ Industrial Areas Approx. 100Sqkm Area (Minimum) • A total of 24 Nodes have been identified in consultation with State Governments : ▫ 11 Investment Regions ▫ 13 Industrial Areas

Strategy for Integrated Corridor Development • Criteria for Selection of Investment Region ▫ Each DMIC State to have at least one node to spread economic benefit ▫ Proximity to major urban agglomerations ▫ Potential for Developing Greenfield Ports (or) Augmentation ▫ Availability of land parcels and established industrial base • Criteria for Selection of Industrial Area: ▫ To take advantage of inherent strengths of specific locations Mineral Resources Agriculture Industrial development, and, Skilled Human Resource base

• To spread the benefits of the corridor the project will also seek to link Under-Developed Regions along the Corridor to Well Developed Regions

Nodes for Phase-1 Development Haryana Haryana

3 c

Rajasthan

2

a

Dadri

1

b Uttar

Pradesh

2) 3) 4)

f

Gujarat

4

J.N.Port

d 5

6

Madhya Pradesh

5) 6) 7)

Maharashtra

e

j) k)

DFC Alignment

ment Region (Min.200SQKM)

trial Area (Min.100SQKM)

l) m) n) o)

Short listed Investment Regions: Dadri-Noida-Ghaziabad (Uttar Pradesh); Manesar-Bawal Region (Haryana); Khushkhera-Bhiwadi-Neemrana (Rajasthan); Bharuch-Dahej (Gujarat); Igatpuri-Nashik-Sinnar (Maharashtra); Pitampura-Dhar-Mhow(Madhya Pradesh) Short listed Industrial Areas: Meerut-Muzaffarpur (Uttar Pradesh) Faridabad-Palwal (Haryana) Jaipur-Dausa (Rajasthan); Vadodara-Ankleshwar (Gujarat); Dighi Port (Maharashtra); Neemuch-Nayagaon (Madhya Pradesh)

Nodes for Phase- 2 Development Haryana Haryana 7

g

Rajasthan

8

Dadri Uttar Pradesh

h

i Gujarat

9

10

m Madhya

Pradesh

j k 11 Maharashtra J.N.Port

l DFC Alignment

tment Region (Min.200SQKM)

strial Area (Min.100SQKM)

Investment Regions: 2) Kundli-Sonepat (Haryana); 3) Ajmer-Kishangarh (Rajasthan); 4) Ratlam-Nagda (Madhya Pradesh); 5) Ahmedabad-Dholera (Gujarat); 6) Dhule-Nardhanda (Maharashtra) Industrial Areas: i) Rewari-Hissar (Haryana); j) Rajsamand-Bhilwara (Rajasthan); k) Pali-Marwar (Rajasthan); l) Surat-Navsari (Gujarat); m) Valsad-Umbergaon with Maroli Greenfield Port (Gujarat); n) Pune-Khed (Maharashtra); o) Shajapur-Dewas (Madhya Pradesh);

Components of Each Industrial Node 

Industrial Infrastructure  New Industrial Clusters/ Parks/ SEZs  Up gradation of existing industrial estates/clusters  Modern Integrated Agro-Processing Zones with allied infrastructure  IT/ITES Hubs and other allied infrastructure  Efficient logistics chain with integrated multi-modal logistic hubs



Physical Infrastructure  Knowledge Cities / Skill Development Centers with integrated approach  Augmentation of Existing Port infrastructure & Greenfield Port Development;  Up gradation/ Modernization of Airports;  Power Generation Plants with transmission facilities;  Feeder Road/Rail connectivity to ports, hinterlands and markets;  Dovetailed integrated townships catering to investor countries  Effective Environment Protection Mechanism

Key Issues in Project Implementation •

• • •

The complexity of implementing the DMIC will require rigorous detailing of all aspects of the project prior to implementation : ▫ Engineering ▫ Environmental ▫ Social ▫ Financial ▫ Contractual, etc The size of the project also emphasizes the need for implementation of project in phases. This will be critical in ensuring its sustainability Given the involvement of multiple Ministries and multiple state governments an effective framework for co-ordination is critical The DMIC Project involves an investment of US$ 90 bn with 60-70 different projects. An a priori strategy for the mobilization of finances to cover each phase of the project will also be critical

Four-Tier Implementation Structure •

An Apex Authority, Headed by the Finance Minister with concerned Central Ministers and Chief Ministers of respective DMIC States as Members;

•

A Corporate Entity, referred as DMIC Development Corporation (DMICDC), to coordinate Project Development, Finance and Implementation; ▫ A Program Management Consultant (Joint Consultant) will work under DMICDC for overall planning, monitoring and financial advisory services

•

State-level Coordination Entity for coordination between DMICDC, various State Govt. Entities and Special Purpose Vehicles (SPVs);

•

Project specific Special Purpose Vehicles (SPVs) to implement individual project components viz. Industrial Areas/SEZs, Roads, Power, Ports, Airports etc

Implementation Framework DMIC Steering Authority (Headed by Finance Minister, with concerned Central Ministers & Chief Ministers as Members) DMICDC (A Corporate Entity with representation from Central & State Govt. Agencies, FIIs and DFC) Master Development Plan, Techno-Economic Feasibility Studies, Business Plans, Projects Prioritization, Bundling & Unbundling of Projects to Central/Line Ministries & State Govt State-level Coordination Entity/ Nodal Agency

Project Specific Special Purpose Companies (SPC) (For both Central & State Govt Projects viz. Ports, Airports, Roads, Industrial Areas, Power etc)

Approvals & Clearances , Monitoring & Commissioning of Projects, Financing Arrangement etc

Project-1

Project-2

Project-3

Project-4

Infrastructure Development Initiatives in DMIC • •

•

•

Development of 10,000MW Power Generation Capacity Development of Three Greenfield Ports ▫ Dholera & Maroli in Gujarat, Dighi Port in Maharashtra; ▫ Augmentation of Two Ports (Dahej and Hazira) in Gujarat Augmentation of Six/Seven Airports ▫ Greater Noida (Uttar Pradesh); Udaipur/ Jodhpur (Rajasthan); ▫ Indore (Madhya Pradesh); Vadodara and Surat (Gujarat); Nashik & Pune (Maharashtra); Air Strips at Dholera & Neemrana Construction/ Augmentation of 2500km long feeder rail linkages

Infrastructure Development Initiatives in DMIC • • • • •

Augmentation/ Construction of 4000km feeder roads (State Highways etc) besides up gradation of National Highways Construction, Operation and Maintenance of Logistics Hubs, Container Terminals Development of Industrial Areas, SEZs/ Agro-Processing Hubs Integrated Townships, IT/ITES Hubs, Biotechnology Parks Knowledge Cities/ Centers of Excellence/ Skill Development Centers

Why DFC??? • When it came to accept the challenge for transporting increased freight traffic there were two options before IR. • First was to carry the same on existing network and the second was to go for separate freight corridor. • The first option of upgrading the existing network was not very convincing due to following major factors:

▫ The average freight speed on existing routes is very low (Approx 25 KMPH) due to mixed traffic conditions ▫ Heavy traffic density routes i.e., golden quadrilaterals are already saturated to the extent of 115 to 150% of carrying capacity ▫ Constraints of axle load increase, suitable wagons and maximum moving dimensions

Why DFC??? • In order to overcome these constraints the cost incurred would have been too high in comparison to the benefits obtained and that too after affecting the present traffic being carried out. Even then to remove all the bottlenecks would have been difficult.

Why DFC??? • The second option of going for dedicated freight corridor, though capital intensive, was more suitable due to following advantages: ▫ Designing the system for carrying bulk freight at higher speed (100 KMPH) with higher capacity and axle load wagons (30 t axle load) and longer trains (15000 m) reliably ▫ Designing a system that needs least maintenance effort so that the overall operation cost on long term basis is least which is beneficial to both Railways and the consumer ▫ Relieving the existing IR network for upgrading same to higher speed reliable passenger corridor ▫ Less train crews, less wagons, less locomotives, reduction in energy consumption per unit freight carried

Why DFC??? • Hence, a conscious decision was taken to go in for Dedicated Freight Corridor

What Kind of System DFC Would Be? • To achieve the objectives of high speed, high axle load and heavier trains the DFC system need to be Heavy Haul Corridor which is defined by the combination of three features: 1. axle load more than 25t 2. tonnage more than 50 GMT 3. speed more than 70 KMPH Planning for a system which is well ahead of these features i.e., speed of 100 KMPH, axle load of 30 t and traffic density of 50 GMT

Challenges in Heavy Haul Operations 1. Design and Constructing the DFC • Formation • Track Components • Construction Quality 2. Maintenance practices and system

Construction Parameters

Construction Parameters

Construction Parameters

Financial Structure of the DMICDC •

49 % equity contributed by GOI

•

51 % equity contributed by Financial Institution(s) and other Infrastructure organizations

•

Loans facilitated by DMICDC – as a pass-through arrangements for specific projects

•

Project Development Funds contributed by GOI, GOJ and FIs

•

USD 250 mn to be raised as Project Development Fund from Govt of India, Japan and FIs

Funding Perspectives for DMIC •

•

Project Development Phase : ▫ Estimated Requirement ▫ Suggested Structure ▫ Project Developer ▫ Recovery of Investment

: : : :

USD 250 mn Venture Capital Fund DMICDC From successful bidders

Project Implementation Phase : ▫ Estimated Requirements ▫ Suggested Structure ▫ Critical Requirement

: : :

USD 90 bn SPV Long term equity Long term debt/sub-debt Viability Gap Funding Debt Service Reserve

Funding Contribution

Funding Contribution

Impacts of DMIC on different states

Nodes Proposed in Gujarat under DMIC The proposed nodes are: 1. Palanpur – Sidhpur – Mehsana Industrial Area 2. Ahmedabad – Dholera Investment Region 3. Vadodara – Ankleshwar Industrial Area 4. Bharuch – Dahej Investment Region 5. Surat – Navsari Industrial Area 6. Valsad – Umbergaon Industrial Area

The port sector in Gujarat offers a wide range of operations

• Port Classification 5 Direct berthing commercial ports 8 Direct berthing captive port terminals Koteswar 11 Lighter age cargo ports ▫ 24 Ports including fisheries harbors Mandvi Mundra

• Existing port infrastructure ▫ ▫ ▫ ▫ ▫ ▫

LNG Port Terminals Chemical Port Terminals Container Port Terminals Bulk Port Terminals Ship Building & Ship Breaking Fisheries Harbor

Navlakhi Bedi

Okha

Sikka

Bhavnagar

Porbandar

Dahej

Muldwarka Pipavav Veraval Jafrabad

• Total port capacity - 140 mmtpa • Total cargo handled – 90 mmtpa (2004)

Hazira Magdalla

Dahej LNG Ship –Petronet LNG Ltd.

Hazira LNG Port Terminal –Shell Hazira Port Ltd.

Pipavav Port – Gujarat Pipavav Port Ltd.

Mundra Port – Container Terminal

Chemical Port Terminal – GCPTCL Dahej

Ship Breaking Yard - Alang

The last ten years have seen a significant surge in the State’s cargo traffic across categories Cargo Traffic (mn tons per annum) 100 90

90

6

80

77

70

66

60

56

50

5

5

6

23

22

21

40 30 2016 10

28

3

48

38

31

57

11

0 1995

2 2001

2002 Chemical

Bulk Cargo

2003 General

2004

The traffic has been both inbound as well as outboundproviding a gateway to all major countries in the world Major Commodities

Import from

LNG and LPG

UAE, Qatar, Panama

Coal

South Africa, Indonesia,Australia, China

Crude Oil and Petroleum Products

UAE, Brazil, Mexico

General Cargo

USA, Europe, Gulf

Major Commodities

Export to

Petroleum & Chemical

UAE, Europe, Singapore, Indonesia

Minerals

UAE, China, Georgia

Food grain & Agri Products

USA, China, Indonatia, UAE

General Cargo

Europe, Shrilanka, UAE,

The Port Policy in 1995 has been one of the key triggers for the growth phase

Significant increase in port infrastructure… Units Port capacity

MTPA

1995

2004

45

140

…has led to increasing revenue for the industry

Total Cargo (in MTPA) 90

16

Captive port terminals

Nos.

8

19

Direct berthing ports

Nos.

2

5

Rail linkages to ports

Nos.

3

8

Private/ Joint sector ports

Nos.

-

4

Pvt. Jetty in existing ports

Nos.

-

8

1995

2004

Port Revenue (in $ mn) 55.5 4.4 1995

2004

The Port Privatization has been phased and covers the complete investment portfolio • Captive Jetty ▫ Develop & Maintain by Port base industries ▫ Concession in port charges Koteswar ▫ Operational freedom Jakhau ▫ 14 captive jetties Mundra ▫ Total Investment Rs. 4300 cr.

• Private Jetty in existing Port ▫ ▫ ▫ ▫ ▫

Develop by GMB/Port Users Operational Freedom Concession in port charges 8 private jetties Total investment Rs. 180 cr.

▫ ▫ ▫ ▫ ▫

Development on BOOT Basis Operational Freedom Tariff freedom 4 private port (3 operational) Total investment Rs. 8500 cr.

Navlakhi

Bedi

Sikka

• Private Ports

• Privatization of Port Services

Porbandar Muldwarka

Dahej

Hazira Pipavav

Captive Jetty Private Jetty Private Port

Gujarat port sector is endowed with unique natural advantages and unparallel access to the hinterland The state has a strong legacy of a vibrant port led economy.. • Rich maritime history • Longest coastline in the country– 1600 km • Best maritime locations in ▫ ▫

Gulf of Kuttch Gulf of Cambay

• Maximum no. of ports in India- 41 ports • Rich natural resources propelling strong industrial development ▫ ▫ ▫ ▫

Minerals Energy Marine products Agriculture

• Port based economy ▫

Petroleum, chemical, steel ,cement etc.

…and has rich hinterland

Existing Rail Linkages to GMB ports

Existing Road Linkages to GMB ports

Going forward, the cargo traffic in Gujarat is expected to grow significantly Projected Cargo Traffic (mn tons 400 per annum)

340

350

27

300

266

250

19

180

200

50 16 3 11 2 0 1995

70

9 53

150 100

87

90

6 28

177

226

118

57 2004 POL & Chemical

2008E Bulk Cargo

2013E General

2018E

The planned port capacities are projected to be insufficient for the increasing demand Projected Cargo Traffic (mn tons per annum)

Demand

Supply

A supply gap of over 80 MTPA of cargo is projected in the year 2018

The preliminary analysis of these investment proposals has been carried out to give a headstart to the investors Particular Large size projects

■ ■

Medium size projects

■ ■

Small size of projects

Size of Investment

Avg. pay back period*

Total Port Projects Shipbuilding Projects

Rs. 500 cr. to Rs. 3000 cr.

+ 20 years

Port terminals in new/existing ports Fisheries Harbor

Rs. 100 to Rs. 500 cr.

10 to 20 years

Ship breaking/ repairing Port Services – Pilotage, Stevedore, Mechanization

Rs. 10 to Rs. 100 cr.

5 to 10 years

Nature of Projects

■ ■

* Average pay back period depends on the size of project and business potential

Project response during Vibrant Gujarat - 2005 Particular MoU for New Port Projects

■ ■ ■ ■ ■

MoU for expansion of existing Port Projects

Proposed investment (Rs. in cr.)

Name of Projects

■ ■ ■ ■ ■

MoU for Other Large Size Projects

■

MoU for Small size of projects

■

■

■ ■

Maroli Simar Vansi-Borsi Bedi Mahuva

8400

Mundra Ship Engineering Mundra New Terminals Solid Port– Dahej Pipavav Port expansion Hazira Port Expansion

5400

Ship Building Yard at Dahej Port Terminal at Navlakhi

1000

Privatization of existing GMB or New facilities Oil Reception Facility Waste Management

687

TOTAL

15487

Honorable Chief Minister’s Message

“Gujarat Ports are gateways to India’s prosperity and Gujarat has taken the lead in privatization and globalization I welcome the world business community to come to Gujarat and invest in our ports”

Thank You