Udyog Bandhu

Delhi-Mumbai Industrial Corridor (DMIC) Concept – Development and the Stake of Uttar Pradesh

In December 2006, an agreement was signed between India and Japan for the Development of two exclusive rail freight corridors, also known as Dedicated Freight Corridors (DFC) as a part of economic co-operation for industry and trade. One between Delhi and Mumbai, termed as Western Corridor and other between Delhi and Kolkata termed as Eastern Corridor. A band of 150 kms each on either side of this corridor has been planned to be developed exclusively for industrial development.

In the first phase, it has been decided to develop industrial belt between Delhi starting from Dadri to Mumbai up to Jawaharlal Nehru Port. Delhi Mumbai Industrial Corridor (DMIC) region is the area of influence of the 1483 kms long DFC.

DMIC Starts from Dadri in Uttar Pradesh, the Junction point of Eastern & Western Dedicated Freight Corridors. The envisaged alignment of freight corridor passes through six states-Uttar Pradesh

In total 24 industrial development nodes have been identified in form of 11 Investment Regions and 13 Industrial Areas for overall development across the corridor. Proposed to be commissioned by 2012, DMIC will prove to be a global manufacturing and trading hub. Equipped with world class infrastructure and backed up by enabling policy frame work, it has been envisaged to achieve following goals in the first phase work commencing from 2008-2012:

Double Employment potential in five years (14.87 % Compound Annual Growth Rate - CAGR)
Triple industrial output in five years (24.57 % CAGR)
Quadruple export from the region in 5 years (31.95 % CAGR)

Delhi Mumbai Industrial Corridor in UTTAR PRADESH

Uttar Pradesh is fortunate in the fact that Dadri, the Junction of both corridors – Western and Eastern - lies in the State. Dadri is close to advance industrial and commercial hubs of NOIDA and Greater Noida. With upcoming Yamuna Expressway Industrial area in near future, part of DMIC in Uttar Pradesh will not only leverage the benefits of already existing potential but will also interweave the adjoining areas in a web of development and prosperity.

Uttar Pradesh is a landlocked state, with no direct access to seaports. DMIC will go a long way in providing fast connectivity to ports near Mumbai. This will help in swift transport of the quality products manufactured in this resource-rich land for exports.

Some Facts:

- Out of the 6 Investment Regions and 6 Industrial Areas identified for development in the first phase, one Investment Region and one Industrial Area lie in Uttar Pradesh:

Dadri-Noida-Ghaziabad Investment Region - General Manufacturing Investment Region (Phase 1A- 2008-2012)
Meerut-Muzaffarnagar Industrial Area - Engineering/ Manufacturing (Phase 1B- 2010-2014)

- In Uttar Pradesh DMIC Region covers:

12 districts covering an area of 36,068 Sqkm, which is 7 % of total DMIC Region fall within the ambit of the DMIC influence region. (Districts covered: Saharanpur, Bijnore, Jyotiba Phule Nagar, Baghpat, Gautam Buddh Nagar, Aligarh, Muzaffarnagar, Moradabad, Meerut, Ghaziabad, Bulandshahar & Mathura)
These districts are located in the northern part of the state, in close proximity to the Delhi. This, coupled with the traditional presence of trading activity, resource availability, infrastructure and linkages, etc., has resulted in sustained industrial activity. Further, Gautam Buddh Nagar, Ghaziabad, Muzaffarnagar, Meerut, Moradabad and Bijnore have witnessed relatively higher levels of industrialization, accounting to approximately 83% of the total industrial output in the DMIC districts.
15 % of U.P. state area and 7 % of DMIC Region
Population of 32 Million (approximately)
19 % of U.P. State population and 15.8% of DMIC region Population

Development of DMIC in Uttar Pradesh

Government of Uttar Pradesh firmly believes that to boost industrial and commercial activity and growth for socio-economic advancement it is mandatory to develop and facilitate world-class infrastructure. In pursuance of the same policy, State government has taken pro-active measures towards the development of DMIC in the State.

Greater Noida Industrial Development Authority (GNIDA) (link) and Uttar Pradesh State Industrial Development Corporation Ltd. (UPSIDC) (link) have been nominated as nodal agencies for ‘Dadri-NOIDA-Ghaziabad’ investment region and ‘Meerut-Muzaffarnagar’ Industrial area respectively.

To expedite the procedures and implementation of projects under Delhi-Mumbai Industrial Corridor, State government has authorized Chief Executive Officer of Greater Noida:

To approve and sign the draft Memorandum of Understanding (MoU) for identified ‘Early bird projects’ of DMIC. Objectives of the MoU have also been specified.
To identify Early-bird project under various grades; preparation of development plan after project feasibility study; and selection of consultants for other projects.
To prepare master plan for the projects identified by consultants and also to implement these projects on the basis of Public Private Partnership through competitive bidding.
To Set up ‘Special Purpose Vehicle’ (SPV) and to ensure timely commencement of project by obtaining approvals and no-objections from central government. SPVs will also be built for early-bird and consultant-identified projects, which will be specified by the State government.
Funds required for the implementation of identified projects will be arranged by Greater Noida and Delhi-Mumbai Industrial Corridor Development Corporation from their own resources.

EARLY BIRD PROJECTS identified under NOIDA — Greater Noida Industrial Development Authority —Yamuna Expressway Authority:

Development of Railway Station at Boraki, Greater Noida – As a Passenger and Commercial Cargo Hub
Multi Modal Logistics Hub (MMLH) at Greater Noida near Dadri
Power Project at Greater Noida
Development of International Airport

District-wise & Sector-wise Industrial activity percentage in DMIC influence Area in Uttar Pradesh