DHOLERA ON DMIC
DHOLERA EXETERNAL CONNECTIVITY
Dedicated Freight Corridor
Near By Ports
Near by Airports
PROJECT HIGHLIGHTS & OPPORTUNITIES
Dholera SIR: Highlights
- A self governed economic region enjoying full support of the government and full potential for private sector participation
- Logistic support of the Delhi-Mumbai Dedicated Freight Corridor linked with efficient rail and road network.
- To be linked with Ahmedabad city by Metro Rail System
- Proximity to sea port, closeness to international airport
- Premium civic amenities
- Close to Gujarat International Finance City (GIFT)
- Close to Petroleum, Chemicals & Petrochemicals Investment Region (PCPIR)
- Autonomy in operations
- Flexibility in decisions
- Single window clearance
- Dispute Resolution mechanism
Opportunities in SIR
- To build industrial parks, townships, knowledge cities
- In building its infrastructure: road, rail, healthcare, water, sanitation, tourism, and hospitality
- Set up a metro rail system and a international airport
- Potential for development as a multi-modal transportation hub due to lesser distance to all the northern Indian States.
- Build a world-class transport service foreign markets
- Work on the central spine road has already started
- Government has allocated 1700 ha. land for the adjoining airport
- Anchor tenants are already in place
- Water logging, seismological & environment studies are underway
- The legal framework enacted: The SIR Act 2009
- Project development corporation (GICC) formed
- Development Plan sanctioned on 10 /09/2012
- Town Planning Scheme (TPS) no. 1 and 2 sanctioned on 3/10/2012
- Town Planning Scheme no. 3, 4, 5 and 6 have been submitted to Apex Authority (GIDB) on 13/12/2012 for sanction
- Tenders for selection of consultants for preliminary design of roads including utilities for TPS no. 2 have been floated
Dholera SIR : A combination of economy & efficiency
- An efficient network of institutions
- Accountability & autonomy go together
- SIR to be an industrial township
- GID Act 1999 to provide legal Framework for PPP
- GIDB: Gujarat Infrastructure Development Board
- GIDB: A statutory organization headed by the honourable Chief Minister
- GIDB provides the hand holding for private sector participation
- GIDB is the “Most Admired State Level PPP agency in India” at KPMG – Infrastructure Today Awards 2008
- GIDB will act as the Apex Authority for the SIR
SIR ACT 2009
The Special Investment Region (SIR) Act – 2009
The state government has enacted a legal framework for the SIR – The Gujarat Special Investment Region Act – 2009. It has come into effect from 6th January, 2009. This shows the commitment of the Government to set up world-class hubs of economic activity on the lines of fastest growing countries of the world.
The SIR Act, inter alia, provides for following matters :
- It enables the State Government to establish, develop, operate and regulate the Special Investment Regions (SIR)
- The Government is empowered to declare Investment Regions or Industrial Areas and designate them as Special Investment Regions (SIR)
- An Investment Region will have as area of more than 100 sq km. and an Industrial Area will have an area of more than 50 sq km.
- A four tier administrative mechanism is set up for establishment, operation, regulation and management of the SIRs
- The administrative mechanism comprises of an Apex Authority (GIDB), a Regional Development Authority (RDA) for each SIR, a Project Development Agency and project specific SPVs
- The Apex Authority will be the highest policy making body
- RDA will look after the ground level issue of development & regulation
- RDA will make its own regulations for building, construction and development
- The Apex Authority will be the single window system and the first contact for the setting up any economic activity or amenity in the SIR
- The SIR Act empowers the state government for setting up of a Project Development Agency
- Government has already formed such a project development company in the name of “Gujarat Industrial Corridor Company” (GICC)
- It provides for effective internal dispute settlement mechanism by a three-tier system
- It provides an effective framework for private sector participation in infrastructure by drawing upon the Gujarat Infrastructure Development Act (GID) Act – 1999
The Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) is a planned industrial development project between India’s capital – Delhi and its financial hub – Mumbai. It is one of the world’s largest infrastructure projects with an estimated investment of USD 90 billion and is planned as a high-tech industrial zone spread across six states, over a 1,500 km long Western Dedicated Freight Corridor which serves as its backbone.
Development plan aims at the creation of an economically and socially balanced, new age city with world class infrastructure and high quality of life. Adoption of sustainable approach across key components such as transportation, waste recycling, overall urban form and resource efficiency from the cornerstones of this plan.
The developmental planning for DMIC aims to achieve certain end results with implementation that would ensure realisation of an envisaged vision for the project, leading to economic development.
Accordingly, the project goals for DMIC are:
- 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)
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 to provide 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. DMICDC will be responsible for assisting state governments to raise 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 a 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.
GIDB – NODAL AGENCY
Gujarat Infrastructure Development Board (GIDB) headed by the Hon. Chief Minister of Gujarat will be the Apex Authority. GIDB will delegate powers and functions to its Executive Committee headed by Hon. MOS (Ind). Core functions of the Apex authority like approvals & modifications in development plan, town planning schemes and general regulations shall not be delegated to any committees.
Powers and functions of the Apex Authority
- To approve Land Use Plan, Town Planning scheme and Development plan of the SIR proposed by the RDA
- To make regulations for Development, Operation, Regulation and Management of SIR
- To approve contracts to be entered in to by RDA and the nodal company
- To ascertain and fix the rates of user charges, proposed by RDA or the nodal company
- To issue necessary instruction to the agencies involved
DICDL – IMPLEMENTATION AGENCY
For the development of Dholera SIR, the Government of India (through DMIC Trust) and the Government of Gujarat (through DSIRDA) formed a Special Purpose Vehicle (SPV) called ‘Dholera Industrial City Development Ltd.’ (DICDL) on Jan 28, 2016. The SPV is made up of a 51% stake of the Government of Gujarat through DSIRDA and a 49% stake of Government of India through DMIC Trust.
DICDL has been formed with an initial capital of INR6,000 crore out of which approximately INR 900 crore has already been released by the DMIC Trust against equity contribution for Activation Area work. The equity on part of the Government of Gujarat through DSIRDA is in form of land, which is allocated to SPV DICDL. The DMIC trust has already approved the activation trunk infrastructure project of INR 4,400 Crores.
OVERVIEW OF GUJARAT
Gujarat has a strategic location – it is well connected to the major cities of the world, both by air and sea routes. The state has direct international flight connectivity to cities across Europe, Middle East, East Asia and America. Gujarat has a coastline of 1,600 km with 42 ports that connect to major sea-based trade routes and trade centres like Middle East, West Europe, Asia and upcoming destinations on the African Continent. The state also acts as a gateway to landlocked states of India connecting to them by road, rail and air thereby boosting their trading opportunities.
- Gujarat has been ranked 1st as per ‘Economic Freedom of the States of India 2012’
- The state has a population of 60 million and has one of the highest urbanization levels – 43%, as per census 2011
- Gujarat’s contribution to India’s Exports is 25% (2011-2012)
- The state has a high and growing literacy rate of 79%, as per census 2011
- It also has the highest share (27%) in investments (in terms of its value) under implemented projects in India (during August-91 to April-2011)
- The state has double digit growth rates with gross state domestic product of USD 74 billion (2011-12) growing at a five year average of 10%
- Gujarat’s contribution to India’s GDP is 7.6%
- The highly industrialized state gross state domestic product contribution from the manufacturing sector is 28%
- Gujarat’s contribution to India’s fixed capital is 18%
- 37% of total Indian port cargo is handled by Gujarat’s ports (2012-13)
- Gujarat has a strong demographic profile; more than 60% of the population is between the age group of 15-59 years (as per census 2011)
- 2nd largest road network in the world – 4.2 million km road network
- 4th largest rail network in the world – 64,460 km long rail route which carries 22 million passengers everyday & 923 million tones of freight per year
- 13 major and 187 minor/intermediate ports – handling 90% of international trade
- 9th largest civil aviation market in the world – Total 125 airports (including 11 international airports)
- 133 operational special economic zones
- 18,637 km of new expressways
- 11,220 km of 2 lane expressways
- 24 cities are currently in various stages of planning metro rail
- Pre-feasibility study of 6 high speed rail corridors is being carried out with 10,000 km of new railway line, a 6,250 km railway network for eastern & western dedicated freight corridor etc.
- Port sector capacity addition to the tune of 1 billion tons is planned in the next 7 years
- The state is ranked 2nd in terms of value and number of PPP projects by the World Bank