Haryana

Haryana Dadri
Uttar
Rajasthan Pradesh

Gujarat
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
 The 1483-km long DFC Project to be
commissioned in 2012
Uttar
Rajasthan Pradesh  Focus is on ensuring high impact
developments within 150km distance
on either side of alignment of DFC
Gujarat
Madhya
 Area under Project Influence is 14%
Pradesh and population is 17% of the Country
 Total Population in the Project
Maharashtra
Influence Area : 178Mn
J.N.Port  Total Workers in the Project Influence
Area: 70.56Mn
DFC Alignment As per Census-2001
End Terminal
 Ghaziabad
Industrial
Dadri
Noida Belts
Faridabad
Alwar  Uttar Pradesh- Noida/ Greater
Noida, Ghaziabad
Jaipur
Jodhpur
(General Manufacturing)
Bhilwara  Haryana- Gurgaon, Faridabad,
Sonepat
Kota
(Automobile, Electronics,
Handloom)
 Rajasthan: Jaipur, Alwar,
Ahmedabad Kota, Bhilwara, Jodhpur
Anand (Marble, Leather, Textile)
Vadodara
Bharuch  Gujarat: Ahmedabad,
Surat Vadodara, Anand,
Bharuch, Surat
Nashik (Engineering, Gems &
Jewelry, Chemicals)

 Maharashtra: Mumbai,
Mumbai Pune Pune, Nashik (Auto/Auto
Component, Textile,
Pharma, Aluminum)
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 a
Dadri
2 1 Short listed Investment Regions:
3 b Uttar Dadri-Noida-Ghaziabad (Uttar Pradesh);
Rajasthan Pradesh
2)
c 3) Manesar-Bawal Region (Haryana);
4) Khushkhera-Bhiwadi-Neemrana
(Rajasthan);
Gujarat f
5) Bharuch-Dahej (Gujarat);
Madhya 6) Igatpuri-Nashik-Sinnar (Maharashtra);
d Pradesh
4 6 7) Pitampura-Dhar-Mhow(Madhya
Pradesh)
5 Maharashtra
J.N.Port Short listed Industrial Areas:
e j) Meerut-Muzaffarpur (Uttar Pradesh)
k) Faridabad-Palwal (Haryana)
l) Jaipur-Dausa (Rajasthan);
DFC Alignment
m) Vadodara-Ankleshwar (Gujarat);
ment Region (Min.200SQKM)
n) Dighi Port (Maharashtra);
trial Area (Min.100SQKM)
o) Neemuch-Nayagaon (Madhya Pradesh)
 Nodes for Phase- 2
Development
Haryana
Haryana 7 Dadri
g Investment Regions:
Uttar 2) Kundli-Sonepat (Haryana);
Rajasthan Pradesh
8 3) Ajmer-Kishangarh (Rajasthan);
h 4) Ratlam-Nagda (Madhya Pradesh);
i
5) Ahmedabad-Dholera (Gujarat);
Gujarat 6) Dhule-Nardhanda (Maharashtra)
m Madhya
10 9 Pradesh
Industrial Areas:
j i) Rewari-Hissar (Haryana);
k 11 Maharashtra j) Rajsamand-Bhilwara (Rajasthan);
J.N.Port k) Pali-Marwar (Rajasthan);
l l) Surat-Navsari (Gujarat);
m) Valsad-Umbergaon with Maroli
Greenfield Port (Gujarat);
DFC Alignment
n) Pune-Khed (Maharashtra);
tment Region (Min.200SQKM)
o) Shajapur-Dewas (Madhya
strial Area (Min.100SQKM) 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
• Project Implementation Phase :
▫ Estimated Requirements
▫ Suggested Structure
▫ Critical Requirement
: USD 250 mn
: Venture Capital Fund
: DMICDC
: From successful bidders
: 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
11 Lighter age cargo ports Koteswar

▫ 24 Ports including fisheries harbors Mandvi Mundra Navlakhi

• Existing port infrastructure Bedi

Sikka
▫ LNG Port Terminals Okha Bhavnagar

▫ Chemical Port Terminals Porbandar Dahej

Muldwarka
▫ Container Port Terminals Veraval Pipavav
Hazira
▫ Bulk Port Terminals Jafrabad Magdalla

▫ Ship Building & Ship Breaking

▫ Fisheries Harbor
• Total port capacity - 140 mmtpa
• Total cargo handled – 90 mmtpa (2004)
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
6
70 28
66
5
60 23
56
5
50 22
40 21

30 57
2016
48
3 38
31
10 11
2
0
1995 2001 2002 2003 2004

Chemical Bulk Cargo General

The traffic has been both inbound as well as outbound-
providing 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… …has led to increasing

revenue for the industry
Units 1995 2004 Total Cargo (in MTPA)
90
Port capacity MTPA 45 140
16
Captive port terminals Nos. 8 19
1995 2004
Direct berthing ports Nos. 2 5

Rail linkages to ports Nos. 3 8 Port Revenue (in $ mn)

55.5
Private/ Joint sector Nos. - 4
ports
4.4
Pvt. Jetty in existing Nos. - 8
ports
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. Navlakhi
• Private Jetty in existing Port Bedi
▫ Develop by GMB/Port Users Sikka
▫ Operational Freedom Dahej
Porbandar
▫ Concession in port charges
Muldwarka
▫ 8 private jetties
▫ Total investment Rs. 180 cr. Hazira

• Private Ports Pipavav

▫ Development on BOOT Basis

▫ Operational Freedom
▫ Captive Jetty
Tariff freedom
▫ 4 private port (3 operational) Private Jetty
▫ Total investment Rs. 8500 cr. Private Port
• Privatization of Port Services
Gujarat port sector is endowed with unique natural
advantages and unparallel access to the hinterland
The state has a strong legacy of a vibrant
…and has rich hinterland
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.
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)
350 340
27
300 266
19 87
250

180 70
200
9
150 53
90 226
100 6 177
28
50 16 118
3
11 57
0 2
1995 2004 2008E 2013E 2018E

POL & Chemical Bulk Cargo General

 The planned port capacities are projected to be
insufficient for the increasing demand

Projected
Cargo
Traffic Demand
(mn tons
per
annum) 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
Size of Avg. pay
Particular Nature of Projects
Investment back period*
Large size projects ■ Total Port Projects Rs. 500 cr. + 20 years
■ Shipbuilding Projects to
Rs. 3000 cr.
Medium size projects ■ Port terminals in Rs. 100 10 to 20 years
new/existing ports to
■ Fisheries Harbor Rs. 500 cr.
Small size of projects ■ Ship breaking/ repairing Rs. 10 5 to 10 years
■ Port Services – to
Pilotage, Stevedore, Rs. 100 cr.
Mechanization

* Average pay back period depends on the size of project and business potential
Project response during Vibrant Gujarat - 2005
Proposed investment
Particular Name of Projects
(Rs. in cr.)
MoU for New Port Projects ■ Maroli 8400
■ Simar
■ Vansi-Borsi
■ Bedi
■ Mahuva
MoU for expansion of ■ Mundra Ship Engineering 5400
existing Port Projects ■ Mundra New Terminals
■ Solid Port– Dahej
■ Pipavav Port expansion
■ Hazira Port Expansion
MoU for Other Large Size ■ Ship Building Yard at Dahej 1000
Projects ■ Port Terminal at Navlakhi
MoU for Small size of ■ Privatization of existing GMB or 687
projects New facilities
■ Oil Reception Facility
■ Waste Management
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