Group:4

Delhi-Mumbai Industrial
Corridor: India’s Road to
Prosperity?
Anand Kumar (2)
Chirag Thakkar (11)
Devansh Saxena (13)
Raj Shah (32)
Rohan Nandi (36)
Shahin Selkar (40)
Souvik Biswas (43)
Vedant Dhakate (49)
 Why do you think corridor based development is
important? (1/2)
• Take advantage of economic potential of high density
development and physical clustering of businesses and
workers in specific geographical areas.
• To support efficient and cost effective movement of goods
and services.
• Create employment opportunities, provide connectivity to
remote regions, increase participation in these value chains,
integrate regional and global value chains and increase in
private investment lead to new industrial centers.
• Reduce cost of accessing raw materials and markets and
implement just in time production techniques.

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 Why do you think corridor based development is
important? (2/2)
• Increase level of accessibility and mobility for passengers
and freight.
• Reduce transport cost and transit time

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 What are the objectives of DMIC
• Objectives of DMIC are:
1) Develop new industrial cities as “Smart Cities” and
converging new technologies into Infrastructure.
2) Develop DMIC as “Global Manufacturing Trading Hub”
3) Development of infrastructure linkages
4) Creating futuristic Industrial cities by leveraging the “High
speed – High capacity” connectivity

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 What is the role of Japan? (1/3)

• One of the India’s major investors in DMIC.

Technological advancement in the areas such as power
generation, seawater desalination, energy efficiency
and logistics systems.
• Comprehensive economic partnership agreement
between India and Japan led to elimination of nearly
94% of trade tariff between two countries over 2011-
2021.
• Japanese assisted India in the form of low interest and
long-term official development assistance loan

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 What is the role of Japan? (2/3)

• In 2011, India received $ 762.46 million from Japan loan

which were used for Infrastructure development in power,
transportation & water
• Delhi Metro Rail Project received 3 billion dollars as loan in
two phases.
• Provided grants ($5.82 million) and technical assistance
($28.09 million) to India.
• Japanese company remained cautious because of India’s
underdeveloped infrastructure, regulation and taxation
rules.

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 What is the role of Japan? (3/3)

• Indian IT companies attempted to address these issues by

developing tailor made solutions for Japanese companies
such as “India in Box” to enable them to navigate local rules
and jumpstart business operations.
• DMICDC expected to work with Japanese corporation Hitachi
and Mitsubishi for digital technology that was needed to
create a central command center for such services.

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 What are the challenges in implementation? (1/2)

• Complex Project Execution

► Inter-ministerial approvals and inter-departmental co-ordination
across all levels of Government
► Minimizing risk for all stakeholders to avoid project delays and cost-
overruns (caused by factors like technical complexity, financing requirements,
rigorous framework, institutional arrangements, etc.)
► Execution capabilities of individual states (Gujarat & Maharashtra)
► Working style & Coordination issues with Japanese counterparts.
► Full benefits will not be realised unless all components along 1483
km stretch were executed.

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 What are the challenges in implementation? (2/2)

• Land Acquisition
► Inabilityof Government in aggregating land, acquiring it and
compensating owners (caused by unavailability of reliable land records and
small & fragmented land holdings – difficulty in ownership and usage patterns,
strong oppositions for industrial purposes)
► The Positive case of Gujarat & Maharashtra in Land Acquisition

• Conditional Support from Japan?

► JICA is providing loan at 0.2% rate but it comes with a bilateral debt
arrangement (Case of undertaking civil work on a section of DFC – mandatory
clause for Japanese Co. to participate as lead partner in any consortium that bid for
contract)

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 What is the current status? (1/2)

• The flagship Delhi-Mumbai Expressway project of the Modi

government is scheduled to be completed within three
years.
• Government is planning to build three of 22 expressways
and green corridors.
• A total of 22 new expressways and green corridors will be
built by 2025 at Rs 3.10 lakh crores.
• Government has saved about Rs 16,000 crores on land
acquisition front citing that land could be acquired at a cost
of Rs 80 lakh per hectare for the project.

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 What is the current status? (2/2)

• The construction work of 18 packages out of 51 packages of

Delhi-Mumbai Express Highway has been started.
• Till now in Dholera Rs. 4,700 Cr. had been invested in the
project and 25 km2 area has been constructed.
• 400 acres land has been acquired in Noida and 137 acres
distributed to companies for development.

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