New Delhi 22 Aug, 2007 Department of Industrial Policy & Promotion (DIPP) Ministry of Commerce & Industry Government of India (MoCI) Delhi-Mumbai Industrial Corridor Haryana Dadri J.N.Port Rajasthan Maharashtra Gujarat Madhya Pradesh Haryana Uttar Pradesh

Government of India initiated the development of DMIC along the Dedicated Freight Corridor (DFC) to optimize on the connectivity offered 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 MoCI and METI, Japan in December, 2006 to create the framework for mutual cooperation MOU relating to the project was signed between MoCI and METI, Japan in December, 2006 to create the framework for mutual cooperation At the instance of the MoCI, an Inter-Ministerial Group was formed to evolve the Project Outline : At the instance of the MoCI, an Inter-Ministerial Group was formed to evolve the Project Outline : MoCI appointed IL&FS Infrastructure Development Corporation in March, 2007 to detail the project concept MoCI 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 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 First Taskforce Meeting held at Tokyo on 25th May, 2007 Second Task Force Meeting held at New Delhi on July 02, 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 Third and Final Task Force Meeting held at Tokyo on July 23, 2007 to finalize the Concept Paper Overview

Delhi-Mumbai Industrial Corridor (DMIC) The 1483-km long DFC Project to be commissioned in 2012 The 1483-km long DFC Project to be commissioned in 2012 Focus is on ensuring high impact developments within 150km distance on either side of alignment of DFC Focus is on ensuring high impact developments within 150km distance on either side of alignment of DFC Area under Project Influence is 14% and population is 17% of the Country Area under Project Influence is 14% and population is 17% of the Country Total Population in the Project Influence Area : 178Mn Total Population in the Project Influence Area : 178Mn Total Workers in the Project Influence Area: 70.56Mn Total Workers in the Project Influence Area: 70.56Mn As per Census-2001 DFC Alignment End Terminal Haryana Dadri J.N.Port Rajasthan Maharashtra Gujarat Madhya Pradesh Haryana Uttar Pradesh

Existing Industrial Belts Uttar Pradesh- Noida/ Greater Noida, Ghaziabad (General Manufacturing) Haryana- Gurgaon, Faridabad, Sonepat (Automobile, Electronics, Handloom) Gujarat: Ahmedabad, Vadodara, Anand, Bharuch, Surat (Engineering, Gems & Jewelry, Chemicals) Ahmedabad Vadodara Bharuch Surat Anand Bhilwara Jodhpur Kota Rajasthan: Jaipur, Alwar, Kota, Bhilwara, Jodhpur (Marble, Leather, Textile) Jaipur Alwar Maharashtra: Mumbai, Pune, Nashik (Auto/Auto Component, Textile, Pharma, Aluminum) Nashik Mumbai Pune Dadri Noida Ghaziabad Faridabad

“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) Double employment potential in five years (14.87% CAGR) Triple industrial output in five years (24.57% CAGR) Triple industrial output in five years (24.57% CAGR) Quadruple exports from the region in five years (31.95% CAGR) Quadruple exports from the region in five years (31.95% CAGR) Vision for DMIC

Industrial Infrastructure Industrial Infrastructure Developing new industrial clusters Developing new industrial clusters Upgradation of existing industrial estates/clusters in the corridor Upgradation of existing industrial estates/clusters in the corridor Developing Modern Integrated Agro-Processing Zones with allied infrastructure Developing Modern Integrated Agro-Processing Zones with allied infrastructure Development of IT/ITeS Hubs and other allied infrastructure Development of IT/ITeS Hubs and other allied infrastructure Providing efficient logistics chain with multi-modal logistic hubs Providing efficient logistics chain with multi-modal logistic hubs Physical Infrastructure Physical Infrastructure Development of ‘Knowledge Hubs’ with integrated approach Development of ‘Knowledge Hubs’ with integrated approach Feeder Road/Rail connectivity to ports, hinterlands and markets; Feeder Road/Rail connectivity to ports, hinterlands and markets; Development of existing Port infrastructure and Greenfield Ports; Development of existing Port infrastructure and Greenfield Ports; Upgradation/ Modernization of Airports; Upgradation/ Modernization of Airports; Setting up Power Generation Plants with transmission facilities; Setting up Power Generation Plants with transmission facilities; Ensuring effective environment protection mechanism Ensuring effective environment protection mechanism Development of integrated townships Development of integrated townships Project Objectives

Infrastructure development- key to DMIC instead of additional fiscal or financial incentives Infrastructure development- key to DMIC instead of additional fiscal or financial incentives Units coming up would have the advantage of improved infrastructure Units coming up would have the advantage of improved infrastructure A Regional development approach instead of isolated pockets A Regional development approach instead of isolated pockets Brownfield areas rather than greenfield in Phase-1 to ensure better cost effectiveness Brownfield areas rather than greenfield in Phase-1 to ensure better cost effectiveness Make development more harmonious by emphasizing local skill and agri development Make development more harmonious by emphasizing local skill and agri development Approach to Development of DMIC

The development strategy for the DMIC is based on the competitiveness of each of the DMIC states : 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 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 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 Market Driven Nodes are proposed to be in two categories Investment Regions- Approx. 200 sq km Area (Minimum) Investment Regions- Approx. 200 sq km Area (Minimum) Industrial Areas- Approx. 100Sqkm Area (Minimum) Industrial Areas- Approx. 100Sqkm Area (Minimum) A total of 24 Nodes have been identified in consultation with State Governments : A total of 24 Nodes have been identified in consultation with State Governments : 11 Investment Regions 11 Investment Regions 13 Industrial Areas 13 Industrial Areas Strategy for Integrated Corridor Development

Strategy for Integrated Corridor Development Criteria for Selection of Investment Region Criteria for Selection of Investment Region Each DMIC State to have at least one node to spread economic benefit Each DMIC State to have at least one node to spread economic benefit Proximity to major urban agglomerations Proximity to major urban agglomerations Potential for Developing Greenfield Ports (or) Augmentation Potential for Developing Greenfield Ports (or) Augmentation Availability of land parcels and established industrial base Availability of land parcels and established industrial base Criteria for Selection of Industrial Area: Criteria for Selection of Industrial Area: To take advantage of inherent strengths of specific locations To take advantage of inherent strengths of specific locations Mineral Resources Mineral Resources Agriculture Agriculture Industrial development, and, Industrial development, and, Skilled Human Resource base 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 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 Short listed Investment Regions: 1) Dadri-Noida-Ghaziabad (Uttar Pradesh); 2) Manesar-Bawal Region (Haryana); 3) Khushkhera-Bhiwadi-Neemrana (Rajasthan); 4) Bharuch-Dahej (Gujarat); 5) Igatpuri-Nashik-Sinnar (Maharashtra); 6) Pitampura-Dhar-Mhow(Madhya Pradesh) Short listed Industrial Areas: a) Meerut-Muzaffarpur (Uttar Pradesh) b) Faridabad-Palwal (Haryana) c) Jaipur-Dausa (Rajasthan); d) Vadodara-Ankleshwar (Gujarat); e) Dighi Port (Maharashtra); f) Neemuch-Nayagaon (Madhya Pradesh) DFC Alignment Investment Region (Min.200SQKM) Industrial Area (Min.100SQKM) Haryana Dadri J.N.Port 1 c d 5 4 Rajasthan Maharashtra Gujarat b e Madhya Pradesh 3 2 a f 6 Haryana Uttar Pradesh

Nodes for Phase- 2 Development Investment Regions: 7) Kundli-Sonepat (Haryana); 8) Ajmer-Kishangarh (Rajasthan); 9) Ratlam-Nagda (Madhya Pradesh); 10) Ahmedabad-Dholera (Gujarat); 11) Dhule-Nardhanda (Maharashtra) Industrial Areas: g) Rewari-Hissar (Haryana); h) Rajsamand-Bhilwara (Rajasthan); i) Pali-Marwar (Rajasthan); j) Surat-Navsari (Gujarat); k) Valsad-Umbergaon with Maroli Greenfield Port (Gujarat); l) Pune-Khed (Maharashtra); m) Shajapur-Dewas (Madhya Pradesh); DFC Alignment Investment Region (Min.200SQKM) Industrial Area (Min.100SQKM) Haryana Dadri J.N.Port h l k 10 j 7 g i Rajasthan Maharashtra Gujarat Madhya Pradesh 9 m Haryana Uttar Pradesh

Components of Each Industrial Node Industrial Infrastructure Industrial Infrastructure New Industrial Clusters/ Parks/ SEZs New Industrial Clusters/ Parks/ SEZs Upgradation of existing industrial estates/clusters Upgradation of existing industrial estates/clusters Modern Integrated Agro-Processing Zones with allied infrastructure Modern Integrated Agro-Processing Zones with allied infrastructure IT/ITES Hubs and other allied infrastructure IT/ITES Hubs and other allied infrastructure Efficient logistics chain with integrated multi-modal logistic hubs Efficient logistics chain with integrated multi-modal logistic hubs Physical Infrastructure Physical Infrastructure Knowledge Cities / Skill Development Centers with integrated approach Knowledge Cities / Skill Development Centers with integrated approach Augmentation of Existing Port infrastructure & Greenfield Port Development; Augmentation of Existing Port infrastructure & Greenfield Port Development; Upgradation/ Modernization of Airports; Upgradation/ Modernization of Airports; Power Generation Plants with transmission facilities; Power Generation Plants with transmission facilities; Feeder Road/Rail connectivity to ports, hinterlands and markets; Feeder Road/Rail connectivity to ports, hinterlands and markets; Dovetailed integrated townships catering to investor countries Dovetailed integrated townships catering to investor countries Effective Environment Protection Mechanism Effective Environment Protection Mechanism

Soft Infrastructure for DMIC Initiatives for Skill Enhancement Initiatives for Skill Enhancement Skill Development Centers/ Centers of Excellence planned through out the investment regions/ industrial areas Skill Development Centers/ Centers of Excellence planned through out the investment regions/ industrial areas Streamlined Administrative Procedures Streamlined Administrative Procedures Each Node will contain one or more Special Economic Zones, which are empowered by the Act to provide necessary clearances themselves Each Node will contain one or more Special Economic Zones, which are empowered by the Act to provide necessary clearances themselves Each State Government will constitute an empowered authority for each of the investment region/ industrial area Each State Government will constitute an empowered authority for each of the investment region/ industrial area These authorities to have delegated powers, from State Government, to take decisions locally These authorities to have delegated powers, from State Government, to take decisions locally Policy Regime for DMIC Policy Regime for DMIC Movement of Goods through roads is proposed to be facilitated without interruption by use of IT Movement of Goods through roads is proposed to be facilitated without interruption by use of IT A Dialogue to be started with State Transport Ministers for a Unified Policy Regime for uninterrupted and low cost movement of material and efficient A Dialogue to be started with State Transport Ministers for a Unified Policy Regime for uninterrupted and low cost movement of material and efficient Government of India has already announced Road Map for ‘Goods and Service Tax’ to adopt by 2010 which replaces central and state taxes into a unified tax regime Government of India has already announced Road Map for ‘Goods and Service Tax’ to adopt by 2010 which replaces central and state taxes into a unified tax regime

Key Issues in Project Implementation The complexity of implementing the DMIC will require rigorous detailing of all aspects of the project prior to implementation : The complexity of implementing the DMIC will require rigorous detailing of all aspects of the project prior to implementation : Engineering Engineering Environmental Environmental Social Social Financial Financial Contractual, etc 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 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 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 different projects. An a priori strategy for the mobilization of finances to cover each phase of the project will also be critical The DMIC Project involves an investment of US$ 90 bn with 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; 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 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 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); 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 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 (FIPB, NSC, MOEF etc), Monitoring & Commissioning of Projects, Financing Arrangement etc Project-1Project-2Project-3Project-4

Financial Structure of the DMICDC 49 % equity contributed by GOI 49 % equity contributed by GOI 51 % equity contributed by Financial Institution(s) and other Infrastructure organizations 51 % equity contributed by Financial Institution(s) and other Infrastructure organizations Loans facilitated by DMICDC – as a pass-through arrangements for specific projects Loans facilitated by DMICDC – as a pass-through arrangements for specific projects Project Development Funds contributed by GOI, GOJ and FIs Project Development Funds contributed by GOI, GOJ and FIs

Project Development Fund (PDF) Magnitude and importance of Project necessitates creation of Project Development Fund: Magnitude and importance of Project necessitates creation of Project Development Fund: Cost of Project development would be substantial Cost of Project development would be substantial Funding would need to be accessed from variety of sources-Central and State Govt., Indian and Foreign investors, bilateral and multilateral Institutions Funding would need to be accessed from variety of sources-Central and State Govt., Indian and Foreign investors, bilateral and multilateral Institutions Investments to be recovered from PPP projects Investments to be recovered from PPP projects USD 250 mn to be raised as Project Development Fund from Govt of India, Japan and FIs USD 250 mn to be raised as Project Development Fund from Govt of India, Japan and FIs The PDF to be used specifically for all Project Development Activities to reach technical and financial closure The PDF to be used specifically for all Project Development Activities to reach technical and financial closure PDF ensures availability of finance to get projects off the ground PDF ensures availability of finance to get projects off the ground

Commitment of DMIC States Each State Government will notify a nodal agency to coordinate with DMICDC, State level agencies, and SPVs Each State Government will notify a nodal agency to coordinate with DMICDC, State level agencies, and SPVs Coordinates implementation of investment regions/ industrial areas in each state; Coordinates implementation of investment regions/ industrial areas in each state; Assists in acquiring the land necessary for setting up infrastructure, processing and non-processing areas; Assists in acquiring the land necessary for setting up infrastructure, processing and non-processing areas; Facilitates all clearances required from the State Government Facilitates all clearances required from the State Government Arrange requisite funding for development of infrastructure, through budgetary resources or by availing existing schemes of GoI Arrange requisite funding for development of infrastructure, through budgetary resources or by availing existing schemes of GoI Ensures world class physical infrastructure and utilities, linkages under its jurisdiction within a stipulated time frame after notifying the location Ensures world class physical infrastructure and utilities, linkages under its jurisdiction within a stipulated time frame after notifying the location

Project Specific SPVs Implementation of specific components of industrial nodes Implementation of specific components of industrial nodes Projects to be awarded to operators with all relevant clearances and through a transparent bidding process Projects to be awarded to operators with all relevant clearances and through a transparent bidding process Project Operators to raise finances, implement and operate the project Project Operators to raise finances, implement and operate the project Independent Board of Directors for each SPV Independent Board of Directors for each SPV Debts to be raised domestically and externally Debts to be raised domestically and externally Debts could also be raised by DMICDC and passed on to SPVs Debts could also be raised by DMICDC and passed on to SPVs

Funding Perspectives for DMIC Project Development Phase : Project Development Phase : Estimated Requirement:USD 250 mn Estimated Requirement:USD 250 mn Suggested Structure:Venture Capital Fund Suggested Structure:Venture Capital Fund Project Developer:DMICDC Project Developer:DMICDC Recovery of Investment:From successful bidders Recovery of Investment:From successful bidders Contributors:Need for ODA/grants Contributors:Need for ODA/grants Project Implementation Phase : Project Implementation Phase : Estimated Requirements:USD 90 bn Estimated Requirements:USD 90 bn Suggested Structure:SPV Suggested Structure:SPV Critical Requirement:Long term equity Critical Requirement:Long term equity Long term debt/sub-debt Viability Gap Funding Debt Service Reserve

Opportunities in DMIC EPC/O&M Contracts EPC/O&M Contracts Project promotion & equity participation in various implementing SPVs Project promotion & equity participation in various implementing SPVs Providing long-term debt Providing long-term debt Industrial Investment (manufacturing & services) Industrial Investment (manufacturing & services) Contribution to PDF on commercial basis Contribution to PDF on commercial basis

Summary- Infrastructure Development Initiatives in DMIC Development of 10,000MW Power Generation Capacity Development of 10,000MW Power Generation Capacity Development of Three Greenfield Ports Development of Three Greenfield Ports Dholera & Maroli in Gujarat, Dighi Port in Maharashtra; Dholera & Maroli in Gujarat, Dighi Port in Maharashtra; Augmentation of Two Ports (Dahej and Hazira) in Gujarat Augmentation of Two Ports (Dahej and Hazira) in Gujarat Augmentation of Six/Seven Airports Augmentation of Six/Seven Airports Greater Noida (Uttar Pradesh); Udaipur/ Jodhpur (Rajasthan); Greater Noida (Uttar Pradesh); Udaipur/ Jodhpur (Rajasthan); Indore (Madhya Pradesh); Vadodara and Surat (Gujarat); Nashik & Pune (Maharashtra); Air Strips at Dholera & Neemrana Indore (Madhya Pradesh); Vadodara and Surat (Gujarat); Nashik & Pune (Maharashtra); Air Strips at Dholera & Neemrana Construction/ Augmentation of 2500km long feeder rail linkages Construction/ Augmentation of 2500km long feeder rail linkages

Summary- Infrastructure Development Initiatives in DMIC Augmentation/ Construction of 4000km feeder roads (State Highways etc) besides up gradation of National Highways Augmentation/ Construction of 4000km feeder roads (State Highways etc) besides up gradation of National Highways Construction, Operation and Maintenance of Logistics Hubs, Container Terminals Construction, Operation and Maintenance of Logistics Hubs, Container Terminals Development of Industrial Areas, SEZs/ Agro-Processing Hubs Development of Industrial Areas, SEZs/ Agro-Processing Hubs Integrated Townships, IT/ITES Hubs, Biotechnology Parks Integrated Townships, IT/ITES Hubs, Biotechnology Parks Knowledge Cities/ Centers of Excellence/ Skill Development Centers Knowledge Cities/ Centers of Excellence/ Skill Development Centers

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