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India is all set to pull off an unprecedented infra story with the Delhi-Mumbai Industry Corridor (DMIC) project. What’s most striking about the proposed project is its integrity of purpose, writes Anil Mathew
The Delhi-Mumbai Industry Corridor (DMIC) project is designed to complement two other ongoing mega infrastructure projects – the Dedicated Freight Corridor (DFC) and the Golden Quadrilateral National Highway. Moreover, the DMIC project also envisages plans to develop new feeder rail/road links to connect it with the DFC as well as major and minor ports along the way and in the hinterlands/markets. Planned alongside the proposed Western DFC, which runs parallel to the Golden Quadrilateral National Highway, DMIC is likely to take into account augmentation of port connectivity, industrial estates and power supply system. Besides, the industrial corridor project is also expected to pay attention to the development of logistics facilities, integrated agro/food processing zones, knowledge cities/skill development centres and new export oriented units/SEZs.
This is a clear indication that an inclusive growth story is on the cards.
Since the Western DFC passes through six states – Haryana, Uttar Pradesh, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra – the industrial corridors are planned in each of these states to take advantage of the connecting infrastructure and realise the dream of integrated growth. However, the development strategy for the DMIC is based on the competitiveness of each of these states. To be developed in two phases under the coordination of the special purpose vehicle Delhi Mumbai Industrial Corridor Development Corporation (DMICDC), DMIC will also draw financial and technical assistance from the Japanese government.
In the first phase (2008 to 2012), each state has been allotted with an investment region (IR) and an industrial area (IA). These IRs and IAs would house state-of-the-art manufacturing facilities, modern logistics infrastructure to serve containerised and non-containerised cargo and requisite feeder rail/road connectivity to hinterland/ markets and ports. An estimated US$90-100 billion would be required to create infrastructure in the first phase.
The project looks promising as it forecasts integrated multimodal logistics hubs in Haryana (Bawal & Palwal), Rajasthan (Ajmer/Marwar), Gujarat (Palanpur), Maharashtra (Nashik, Pune) and Madhya Pradesh (Dewas & Indore), and augmentation of port connectivity and power supply system. This is because these three infrastructures can be considered as the backbones of any developed nation, and any steps to enhance or improve these infrastructures should be seen as a step closer to our journey towards being a developed nation.
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DMIC is sure to take logistics infrastructure to the next level. The proposed plan to equip state-of-the-art warehousing zones with inventory management and communication system deserves special mention, as it should be seen as a step to integrate logistics components. This move is also expected to facilitate a major role for third party logistics operators.
Logistics players have enthusiastically welcomed the plans to develop logistics facilities as part of DMIC. “With major expansion of infrastructure and industry planned in the region, it is expected that the growth of exports will be quadrupled from the region. This will be further supported by state-of-the-art rail, road and air connectivity, which will give impetus to the logistics sector in these six states along the route. The plans to set-up multimodal logistics hub and warehousing zones will definitely form the part of big-picture of next generation logistics in the zone, in particular and India, in general,” says Adarsh Hegde, executive director, Allcargo Global Logistics Ltd.
“DMIC forms a model of inclusive growth, which is certainly different from earlier conceptualised economic zones like SEZ and FTWZs,” he adds pointing out the uniqueness of this mega industrial corridor project, which is expected to change the facet of Indian infrastructure in the days to come.
The proposal to set up multimodal logistics hubs in the DMIC region seems to be an indication that the government and the industry have started to appreciate the importance of supply chain support required to minimise the inventory cost and ensure timely availability of goods. The logistics hubs will be integral to the supply chains associated with the proposed industrial and business set-up along the corridor. This should be considered as a right move, as the projected growth in infrastructure and industries will require timely presence of assets (raw material and products) of the global supply chains across new expanded hinterland.
Welcoming the plans to develop logistics hubs in the DMIC regions, LR Sridhar, MD, Sical Logistics, says: “We believe setting up of integrated logistics hubs in these days will go a long way in reducing the current inefficiencies in logistics delivery in India. Moreover, DMIC would provide tremendous growth opportunities for the country’s logistics sector, as it ensures well (rail/road) connectivity to hinterland/markets and ports.”
Although there are no two opinions about setting up logistics hubs, some of the industry players like to see active participation from the private sector in the planning and implementation stage, currently none of which is apparent. “I would like to see greater public-private partnerships in this area, which will result in transparency, and consequently, more accountability,” says Ivan Rodrigues, MD and CEO, Ajna Consulting Solutions, who was with Radhakrishna Foodland Pvt Ltd earlier. He is glad to see the provision for cold chain logistics infrastructure as part of integrated agro/food processing zone in the DMIC area.
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