DMIC strives to create a very strong and sound economic base that provides a globally competitive environment and state-of-the-art infrastructure to enhance and improve the local commerce, increase interest of foreign investment and develop in an environmentally friendly and sustainable manner.
The Delhi-Mumbai Industrial Corridor is conceived as the Model Industrial Corridor of international standards with proper emphasis on increasing the manufacturing and service base manifold and develop and portray the project, DMIC, as the “Global Manufacturing and Trading Hub”.
DMIC will be developed with one goal, to make it the Global Manufacturing and Trading Hub of India supported by top-notch and world class infrastructure and streamlining the procedure of development and enabling policy framework, it strives to be “the engine for economic resurgence of the country”.
Vision for DMIC
The vision for DMIC is 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 to be 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’.
The Government of india is setting up a multi-modal Dedicated Freight Corridor (DFC) between Delhi and Mumbai. Out of the total 1483 kms of the length of DFC, 38% is falling in Gujarat. The area of 150 kms on the both sides of the DFC will be developed as DMIC. It will be a high impact industrial corridor.
- DMIC: a high impact industrial area within 150 km distance on both side of the DFC
- Area under Influence- 14% & Population- 17% of the Country
- Total Population: 173.4 Million
- Total Workers: 68.36 Million
- Total 82 Districts of Six States within the Influence Area (excluding MP)
- 25 industrial nodes have been proposed along the DMIC
Government of India has incorporated a special purpose vehicle, Delhi Mumbai Industrial Corridor Development Corporation (DMICDC), specially envisaged to coordinate DMIC Project Development, Finance and Implementation, headed by a full time Chairman and Directors and having representation from the Government of India and Financial Institutions.
An Apex Authority has been constituted under the chairmanship of Union Finance Minister with concerned Central Ministers and Chief Ministers of respective DMIC States as Members for providing overall guidance for planning and issue necessary approvals.
DMICDC will undertake project development activity for various central government projects and also help in assisting state governments, wherever desired. DMICDC will be responsible for assisting state governments in raising finances on the basis of a sovereign guarantee. The corporate entity will have a shell structure with 49% contribution by GOI and the remaining by Financial Institutions and other infrastructure organizations.
DMICDC will also act as a pass through entity for specific projects and raise Project Development Fund (PDF) from GOI, GOJ and FIIs. The PDF is proposed to be used as a revolving fund, specifically for undertaking project development activities (e.g. DPR preparation etc.), and shall be recovered from the successful bidders. This fund will also ensure availability of uninterrupted funds for various preparatory activities. The designatories of respective State Governments and the DFC implementing agency could be represented as Directors on the Board of DMICDC.
It is envisaged that funding for DMIC project could be either through nodal agencies (budgetary/extra budgetary provisions) or through Viability Gap Funding/Long term soft loans extended to the Project SPVs. DMICDC would facilitate this process by using a sovereign guarantee provided by the Central government. Moreover, the SPVs could also borrow on their own balance sheets or project recourse basis.
More about DMIC
The DMIC project has emphasis on enabling three potential and will be undertaken with these in mind:
Firstly, the project aims at doubling the employment potential in the state in five years (14.87% CAGR). Secondly, DMIC strives to triple the industrial output in approximately five years (24.57% CAGR). Furthermore, the DMIC project will quadruple the exports from the state and the surrounding region in five years (31.95% CAGR).
The DMIC project is planned in such a way that it aims to achieve specific end results with conventional implementation techniques that will ensure the realization of envisaged vision of the project and lead to increased economic development.
The Government of India has introduced a special corridor, the Delhi-Mumbai Industrial Corridor Development Corporation (DMICDMC), which has the specific purpose of enhancing the development of the DMIC project, Finance and Implementation, headed by a full-time Chairman and experienced Directors and have full support and representation from the Government of India and other important Financial Institutions.
An Apex Authority has been established and is constituted under the chairmanship of the Union Finance Minister and the Central Ministers and Chief Ministers of the respective DMIC States are the members for overlooking and providing overall guidance for planning and issuing necessary approvals.
DMICDC will assist state governments by undertaking project developmental activities for various Central Government projects, wherever desired. DMICDC will also be responsible for assisting the state Governments in raising finances on the basis of a sovereign guarantee. The corporate entity will have a shell structure with 49% contribution by GOI and the remaining 51% by Financial Institutions and other infrastructural organisations.
DMICDC will also be charged with being the pass-through entity for various projects and raise the Project Development Fund (PDF) from GOI, GOJ and FIIs. The Project Development Fund is proposed to be used as a revolving fund, specifically for undertaking project development activities (e.g. DPR preparations, etc.), and shall be recovered from successful bidders. The fund will also warrant the availability of uninterrupted funds for a plethora of preparatory activities. The designators of the State Governments and the adjoining DFC implementing agency in the DIMC project area may be selected and be represented as the Directors on the Board of DMICDC.
It is envisaged that funding for DMIC project could be either through nodal agencies (budgetary/extra budgetary provisions) or through Viability Gap Funding/Long term soft loans extended to the Project SPVs. DMICDC will facilitate this process by using a sovereign guarantee provided by the Central Government. Moreover, the SPVs could also borrow funds with their balance sheets or on project recourse basis.
DMIC is to be developed as a Global Manufacturing and Trading Hub of India supported by world class infrastructure and enablining policy framework, It will become “the engine for economic resurgence of the coutry”.
- 62% of the total area of Guajrat covered
- 18 out of 26 District within the influence Area
- Major cities on DMIC:Ahmedabad, Vadodara, Surat
- 1/3rd of total investment will be in Guajrat
- Estimated employment: 8 lacs
- Gujarat’s ports to cater to foreign & hinterland markets
- World class connectivity between the Ports, nodes & DFC
- Six logistics parks being developed along the DFC