Building Infrastructure Of Tomorrow

by JagmOHaN Singh Sekhon October 26, 2020

Industrial Corridor Projects

Government of India is developing various Industrial Corridor Projects as part of National Industrial Corridor Programme which is aimed at development of futuristic industrial cities in India which can compete with the best manufacturing and investment destinations in the world. The same will create employment opportunities and economic growth leading to overall socio-economic development.

11 Industrial Corridors Projects are being taken up for development with 30 Projects to be developed in 04 phases up to 2024–25:

Delhi Mumbai Industrial Corridor (DMIC);
Chennai Bengaluru Industrial Corridor (CBIC);
Amritsar Kolkata Industrial Corridor (AKIC);
East Coast Industrial Corridor (ECIC) with Vizag Chennai Industrial Corridor (VCIC) as Phase 1;
Bengaluru Mumbai Industrial Corridor (BMIC);
Extension of CBIC to Kochi via Coimbatore;
Hyderabad Nagpur Industrial Corridor (HNIC);
Hyderabad Warangal Industrial Corridor (HWIC);
Hyderabad Bengaluru Industrial Corridor (HBIC);
Odisha Economic Corridor (OEC);
Delhi Nagpur Industrial Corridor (DNIC).

While developing the Delhi Mumbai Industrial Corridor (DMIC) project, Western DFC has been considered as the transportation backbone while Eastern DFC has been considered as the backbone for Amritsar Kolkata Industrial Corridor (AKIC) project. For other industrial corridor projects like Chennai Bengaluru Industrial Corridor (CBIC) and Bengaluru Mumbai Industrial Corridor (BMIC), NH-4 has been considered as the backbone. For East Coast Economic Corridor (ECEC), NH-5 which is part of the Golden Quadrilateral, the Kolkata–Chennai rail route has been considered as the transport backbone. The proposed North- South East-West and East Coast Dedicated Freight Corridors will further supplement the existing transportation backbone for the corresponding Industrial Corridors.

Phase 1: Projects approved

Dholera Special Investment Region (22.5 sq. kms) under DMIC in Gujarat. http://dicdl.in/
Shendra Bidkin Industrial Area (18.55 sq. kms) under DMIC in Maharashtra.https://www.auric.city/
Integrated Industrial Township Greater Noida in Uttar Pradesh (747.5 acres) under DMIC in Uttar Pradesh. https://www.iitgnl.com/
Integrated Industrial Township Vikram Udyogpuri near Ujjain (1100 acres) under DMIC in Madhya Pradesh. http://vikramudyogpuriujjain.com/
Integrated Multi Modal Logistics Hub at Nangal Chaudhary (886 acres) in Haryana under DMIC has been approved by CCEA and implementation is likely to be initiated shortly.

The program is aimed at providing multi modal connectivity with complete “plug and play”infrastructure till the plot level along with building resilient and sustainable future ready cities. As part of Delhi Mumbai Industrial Corridor (DMIC) Project, 4 cities in the States of Gujarat, Maharashtra, Uttar Pradesh and Madhya Pradesh have already been implemented and 68 plots covering an area of 521 acres have been allotted so far with a committed investment of around Rs. 16,000 crore. Total developed land available which is additionally ready for allotment to industries is 3,620 acres and 3,000 acres for non-industrial uses.

Phase 2: Projects in advance stage of planning and implementation to be initiated by 2021

Krishnapatnam Industrial Area (2,500 acres) in Andhra Pradesh approved by NICDIT and approval from CCEA is being sought
Tumakuru Industrial Area (1,736 acres) in Karnataka under CBIC has been approved by NICDIT and approval from CCEA is being sought.
For Multi Modal Logistics Hub (MMLH) & Multi Modal Transport Hub (MMTH) (1,208 acres) at Greater Noida in UP under DMIC, NICDIT has accorded its approval & CCEA approval is being sought.
As part of DMIC, for Dighi Port Industrial Area (7,413 acres), activities pertaining to detailed master planning and preliminary engineering has been completed
For Multi Modal Logistics Park (MMLP) at Sanand (500 acres) under DMIC in Gujarat, master planning activities are being finalized;
As part of Hyderabad Nagpur Industrial Corridor, master planning has been completed for Zaheerabad (3,500 acres)
As part of Hyderabad Warangal Industrial Corridor, master planning has been completed for Hyderabad (8,000 acres)
As part of Amritsar Kolkata Industrial Corridor, master planning has been completed for Raghunathpur (2,483 acres)

Phase 3: Projects under development and implementation likely to be initiated by 2023

As part of CBIC, activities pertaining to detailed master planning and preliminary engineering for Ponneri (4,000 acres) has been initiated
As part of extension of CBIC, activities pertaining to detailed master planning and preliminary engineering for Palakkad (1,878 acres) in Kerala has been initiated
As part of extension of CBIC, activities pertaining to detailed master planning and preliminary engineering for Dharmapuri Salem (1,733 acres) in Tamil Nadu has been initiated
As part of Amritsar Kolkata Industrial Corridor, master planning activities are being initiated for Hisar (3,000 acres) in Haryana
For VCIC Corridor, project development activities are being initiated forKopparthy (4,085 acres) in Andhra Pradesh
For VCIC Corridor, project development activities are being initiated forChittoor (8,967 acres) in Andhra Pradesh
For Vizag (4,311 acres) Node under VCIC in Andra Pradesh, State Govt. is carrying out the Detailed Master Planning and Preliminary Engineering.
For AKIC Corridor, Integrated Manufacturing Cluster at Prag Khurpia(2,935 acres) under AKIC in Uttarakhand is being taken up and tender documents for selection of consultants have been issued.

Phase 4: Projects under conceptualization and implementation likely to be initiated by 2024

For BMIC Corridor, Dharwad (5,800 acres) in Karnataka is being taken up.
For BMIC Corridor, Sangli/Satara/Solapur Node in Maharashtra is proposed for development and State Govt. has been requested for a concurrence on prioritized node
For Integrated Manufacturing Cluster at Rajpura Patiala under AKIC in Punjab, project development activities are being initiated as confirmation from State Govt. regarding availability of land has been received.
For Integrated Manufacturing Cluster under AKIC in Uttar Pradesh, State Govt. has been requested for confirmation on prioritized node
For Integrated Manufacturing Cluster under AKIC in Jharkhand, State Govt. has been requested for confirmation on land details.
For Integrated Manufacturing Cluster under AKIC in Bihar, State Govt. has been requested for confirmation on land details
For Odisha Economic Corridor, two nodes have been identified i.e. Gopalpur,
Bhubaneswar Kalinganagar (GBK node) and Paradip –Kendrapada — Dhamra– Subarnarekha (PKDS node) and have been recently approved by NICDIT for development under National Industrial Corridor Programme and are being taken forward
Orvakal (Andhra Pradesh) node under Hyderabad Bengaluru Industrial Corridor has been recently approved by NICDIT for development under National Industrial Corridor Programme and project development activities are being initiated
For Delhi Nagpur Industrial Corridor, discussions will be initiated shortly for project development activities tate Govt.(s) have been urged to transfer land to the project SPVs for commencement of project development activities or identify land for conducting the feasibility studies as the case may be. NICDC is in constant engagement with the States to fructify this.
Delhi Mumbai Industrial Corridor (DMIC) project was approved by Union Cabinet of India in 2007. Later, the institutional and financial structure of the project was approved by the Government of India are the Scheme was launched in September, 2011. Further, NICDIT(National Industrial Corridor Development and Implementation Trust) under this Department was approved on 07/12/2016 for the expansion of the scope of existing DMIC-Project. (The details in respect of other Industrial Corridors are given in Annexure-III.)

Delhi Mumbai Industrial Corridor (DMIC)

Delhi Mumbai Industrial Corridor (DMIC) project is a flagship programme of the Government of India with aim to enhance India’s competitiveness significantly in manufacturing through creation of world class infrastructure with reduced logistics costs. The project aims to create smart, sustainable industrial cities by leveraging high speed, high capacity connectivity backbone provided by the Western Dedicated Freight Corridor (DFC) to reduce logistic costs in an enabling policy framework. These new cities will come up in the States of Uttar Pradesh, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra. This is the first time that the geographical planning was integrated with the digital planning with an Information & Communication Technology (ICT) backbone to create Smart cities of the future. In essence, technology is being used to enable India to leap frog in the process of urbanisation.
The Perspective Plan prepared for DMIC had identified 24 investment nodes {11 Investment Regions (IRs) and 13 Industrial Areas (IAs)} spanning across six States after wide consultations with stakeholders including the State Governments and the concerned Central Government Ministries. Out of the 8 Industrial Cities proposed in the first phase, work has commenced in 4 cities for which sanction was received in 2014–15 and 2015–16. This is the first time; India had embarked on the process of planned urbanisation with manufacturing as the key economic driver.

Chennai Bengaluru Industrial Corridor (CBIC)

The Chennai Bengaluru Industrial Corridor proposes to address infrastructure bottlenecks through a holistic approach while benefiting from the inherent strengths and competitiveness of each of the CBIC states. Accordingly high impact/ market driven nodesat strategic locations are proposed to be developed within the corridor to provide transparent and investment friendly facility these regions are proposed to be self- sustained nodes with world-class infrastructure, road and rail connectivity for freight movement to and from ports and logistics hubs, served by reliable power, quality social infrastructure, and provide a globally competitive environment conducive for setting up businesses.
CBIC Region covers parts of three States, referred as CBIC states, (viz. Tamil Nadu, Karnataka, Andhra Pradesh). CBIC Region comprises of a combined population of about 47.5 Million constituting approximately 3.7% of total population of the country.

Amritsar Kolkata Industrial Corridor (AKIC)

Amritsar-Kolkata Industrial Corridor (AKIC) is being developed along the alignment of the Eastern Dedicated Freight Corridor (EDFC) traversing a route length of 1839 km in six States. Objectives of AKIC to optimise the present economic and employment potential of the region, stimulate investments particularly in the manufacturing, agro-processing, services and export oriented units and promote overall economic development of the area through creation of high standard infrastructure and an enabling pro-business environment. AKIC is proposed to be developed in a band of 150–200 Kms on either side of EDFC, in a phased manner. AKIC will have an influence area across seven States of Punjab, Haryana, Uttar Pradesh, Uttarakhand, Bihar, Jharkhand and West Bengal.

East Coast Economic Corridor with phase-1 as Vizag- Chennai Industrial Corridor (VCIC):

East Coast Economic Corridor linking Kolkata- Chennai — Tuticorin has been envisaged with VCIC as phase-1 of the project. VCIC region encompasses one of the largest concentrations of industrial, mineral and urban nodes supplemented by strong local factor advantages which inter alia include good connection with its hinterland and major ports in the proximity of East Asian economies (around 80% of Andhra Pradesh).
Further, Odisha Economic Corridor is also being developed as part of East Coast Economic Corridor.

Bengaluru Mumbai Industrial Corridor (BMIC)

The Government of India is also developing Bengaluru Mumbai Industrial corridor between Bengaluru and Mumbai, which would have an Influence Area spread across the states of Karnataka and Maharashtra.
The Bengaluru Mumbai Industrial Corridor is intended to facilitate development of a well- planned and resource-efficient industrial base served by world-class sustainable connectivity infrastructure, bringing significant benefits in terms of innovation, manufacturing, job creation and resource security to the two states. The availability of world class infrastructure along the Corridor shall also enable increased investments in manufacturing and industrial activityinthetwostates.Attractingmore companies, inparticularmanufacturing companies, will be effective in strengthening global competitiveness of local manufacturers, which may result in accelerated regional development.

Hyderabad Warangal and Hyderabad Nagpur Industrial Corridor:

The Government of India is also considering Hyderabad Warangal and Hyderabad Nagpur Industrial Corridors, which would have an Influence Area spread across the states of Telangana and Maharashtra. These Industrial Corridors will facilitate development of a well- planned and resource-efficient industrial base served by world-class sustainable connectivity infrastructure, bringing significant benefits in terms of innovation, manufacturing, job creation and resource security to the identified areas.

Hyderabad Bengaluru Industrial Corridor (HBIC):

The Government of India has recently received a request for developing Hyderabad Bengaluru Industrial Corridor, which would have an Influence Area spread across the states of Telangana, Andhra Pradesh and Karnataka. This corridor will act as an extension of Hyderabad Nagpur Industrial Corridor thereby connecting the central parts of the country with southern parts.

Detailed Write-up :

Scheme Objectives: To enhance India’s competitiveness in manufacturing through the creation of world class infrastructure and reduced logistics costs.
Coverage & Eligibility:

DMIC project covers six different States i.e. Uttar Pradesh, Haryana, Gujarat, Rajasthan, Madhya Pradesh and Maharashtra.
AKIC Project covers seven different states i.e. Punjab, Haryana, Uttarakhand, Uttar Pradesh, Bihar, Jharkhand and West Bengal.
CBIC with extension to Kochi via Coimbatore includes 4 states, i.e. Karnataka, Tamil Nadu, Andhra Pradesh and Kerala.
ECEC with 1st phase of VCIC includes the state of Andhra Pradesh.
BMIC Project includes the states of Maharashtra and Karnataka.

3. Budget Availability / Utilization- “National Industrial Corridor Programme” as an overarching scheme withan overallsanctioned corpus of Rs. 20,084 crore out of which Rs. 6,115 crore has been utilized till date.

4. Physical Progress against milestones: The detailed status of various Industrial Corridor Projects is enclosed at “Annexure-I”

5. Salient Features: In case of DMIC project, the construction related activities were initiated and are nearing completion at the following four locations:

Activation area for Dholera Special Investment Region in Gujarat admeasuring 22.5 sq. kms;
Phase-1 of Shendra Bidkin Industrial Area in Maharashtra admeasuring 18.55 sq. kms;
Integrated Industrial Township project at Greater Noida, Uttar Pradesh admeasuring 747.5 acres;
Integrated Industrial Township project at Ujjain, Madhya Pradesh admeasuring approx. 1100 acres.
Land allotment policies have also been finalized at all the above highlighted locations and a total of 67 plots have been allotted with a committed investment of Rs. 10,060 crore.
Apart from the above highlighted projects, project developmental activities are also being taken forward for the following projects:
Integrated Multi Modal Logistics Hub (IMLH) Project, Nangal Chaudhary at Haryana;
Greenfield International Airport Project at Dholera in Gujarat;
Multi Modal Logistics Hub (MMLH) and Multi Modal Transport Hub (MMTH) at Dadri, Uttar Pradesh;
Multi Modal Logistics Park at Sanand in Gujarat;
Aerotropolis Project at Rajasthan;
Mass Rapid Transit System (MRTS) Project from Gurgaon to Bawal in Haryana and Ahmedabad to Dholera in Gujarat;

6. Implementing Agency: DNational Industrial Corridor Development Corporation Limited (NICDC) [erstwhile Delhi Mumbai Industrial Corridor Development Corporation Limited (DMICDC)] is the implementing agency which an acts as a knowledge partner to NICDIT in respect of all the Industrial Corridor projects for undertaking various project development activities.

7. Monitoring and Review Mechanism:

National Industrial Corridor Development and Implementation Trust (NICDIT).
For coordinated and unified development of all the industrial corridors projects including DMIC, GoI on December 7, 2016 approved the expansion of the scope of existing DMIC-Project Implementation Trust Fund (PITF) and re-designated it as National Industrial Corridor Development and Implementation Trust (NICDIT). Accordingly, NICDIT is under the administrative control of DPIIT for coordinated and unified development of all the industrial corridors which are at various stages of development and implementation. Secretary, DPIIT is the chairman of NICDIT with CEO, NITI Aayog and other Secretaries to Govt. of India as its members.
All the corridors namely Delhi — Mumbai Industrial Corridor, Amritsar — Kolkata Industrial Corridor, Bengaluru — Mumbai Industrial Corridor, Chennai-Bengaluru Industrial Corridor, Vizag Chennai Industrial Corridor and other corridors in future will function under the administrative control of NICDIT.
An Apex Monitoring Authority under the chairmanship of the Finance Minister has been set up to periodically review the activities of NICDIT and progress of the projects. It consists of Minister-in-charge of Ministry of Commerce & Industry, Minister of Railways, Minister of Road Transport and Highways, Minister of Shipping, Vice-Chairman of NITI Aayog and Chief Ministers of State concerned as Members.
Each industrial city /node in the Industrial Corridors is envisaged to be implemented by a Special Purpose Vehicle (SPV) in the form of a company set up under the Companies Act, as a joint venture between Govt. of India represented through NICDIT, and the respective State Government, in the manner approved for NICDIT (earlier DMIC Trust). The Board of the respective SPV’s is chaired by Principal Secretary (Industries)/Additional Chief Secretary (Industries Dept.) of the respective State Govt.(s).
Progress of the Industrial Corridor projects is being monitored by DPIIT on a regular basis and the project is also being reviewed as part of the Project Monitoring Group (PMG), within DPIIT on a regular basis.

Why in News

Government has approved the development of the five industrial corridor projects which will be implemented through National Industrial Corridor Development and Implementation Trust (NICDIT).

NICDIT is an apex body under the administrative control of the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry for coordinated and unified development of the 5 Industrial Corridors in India.
In 2017, Delhi Mumbai Industrial Corridor Project Implementation Trust Fund (DMIC-PITF) was re-designated as National Industrial Corridor Development and Implementation Trust (NICDIT).
NICDIT supports project development activities and appraisal, approval and sanction of projects. It also coordinates and monitors all central efforts for the development of Industrial Corridor projects.

Why Industrial Corridors

Industrial corridors offer effective integration between industry and infrastructure, leading to overall economic and social development. Industrial corridors constitute:
High-speed transportation network — rail and road
Ports with state-of-the-art cargo handling equipment
Modern airports
Special economic regions/industrial areas
Logistic parks/transhipment hubs
Knowledge parks focused on catering to industrial needs
Complementary infrastructure such as townships/real estate
Other urban infrastructure along with enabling policy framework
The 11industrial corridors are spread across India, with a strategic focus on inclusive development to boost industrialization and planned urbanization.
Manufacturing is a key economic driver in each of these projects. Industrial Corridors are expected to play a critical role in raising the share of contribution of the manufacturing sector from approximately 16% to 25% by 2025.
Smart cities are being developed along these corridors. These cities, with state-of-the-art infrastructure, will house the new workforce that is required to power manufacturing, in turn leading to planned urbanization.
11 industrial corridors being developed in the country and would comprise 30 projects that would come up in four phases till 2024–25.
Of these, five projects- Dholera Special Investment Region, Shendra Bidkin Industrial Area, Integrated Industrial Township Greater Noida, Integrated Industrial Township Vikram Udyogpuri and integrated Multi Modal Logistics Hub at Nangal Chaudhary- have already been taken up ..

Boosting Growth: India’s PCPIRs — Make In IndiaBoosting Growth: India’s PCPIRs

3 Years ago India’s Petroleum, Chemicals and Petrochemicals Investment Regions are engines of growth for Make in India.
India’s Petroleum, Chemicals and Petrochemicals industry is well established and has grown steadily over the years. The industry is crucial for the development of manufacturing sector in India as it provides building blocks for various downstream sectors such as pharmaceuticals, agriculture, textiles etc.
In FY 2016–17, the country produced 6,740 thousand Metric Tonnes (MT) of major chemical products (till November 2016), registering an annual growth of 3.2%. Petrochemicals sector registered an annual growth of 7.2% by producing 10,423 thousand MT of basic petrochemicals in FY 2016–17. 1

India’s chemical sector is expected to become a USD 226 Billion industry by 2020, growing from a USD 147 Billion industry in 2015.
Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) were conceptualised to sustain the growth of the sector by providing quality infrastructure, competitive business environment and Viability Gap Funding (VGF). The PCPIRs would bring together manufacturing facilities, logistic and other services, required infrastructure, residential and administrative areas etc. They are envisaged to generate better efficiency on account of using common infrastructure and support facilities.

Currently, four coastal states host PCPIRs in the country. 4Each PCPIR will have one refinery or petrochemical company as an anchor tenant along with other manufacturing units. It can also include already existing industrial parks. Special Economic Zones (SEZs) and export units.

Since the announcement, the states of Tamil Nadu, Gujarat, Andhra Pradesh and Odisha have created PCPIRs which are at the different stages of implementation. All projects have created combined employment of around 273,000 in these regions. 7 Each PCPIR has an investment region of about 250 sq. km with at least 40% of the area dedicated to the processing activities. Till September 2016, all four PCPIRs have attracted investments worth USD 26 Billion from various oil and gas sector giants. With these investments, significant infrastructure is expected to be created at PCPIRs.
Prominent companies in oil and gas sector such as Oil and Natural Gas Corporation (ONGC), Hindustan Petroleum Corporation Limited (HPCL), Indian Oil Corporation Limited (IOC) and Nagarjuna Oil Corporation Limited (NOCL) have joined PCPIRs as anchor tenants by investing heavily in the infrastructure of the region. The respective state governments have also taken an initiative to boost infrastructure at PCPIRs through various nodal agencies.
Strategically positioned to the east of Delhi-Mumbai Industrial Corridor (DMIC), the PCPIR at Dahej, Gujarat has received infrastructure investment of USD 2.42 Billion from Gujarat Infrastructure Development Corporation (GIDC). The anchor tenant ONGC has invested USD 4.07 Billion in the project which is expected to create total employment of 90,000 once completed.
At Paradeep, PCPIR in Odisha, USD 1.47 Billion has been invested in basic infrastructure while IOCL has already commissioned a 15 Million Metric Tonnes Per Annum (MMTPA). 12PCPIR at Andhra Pradesh covers six Special Economic Zones (SEZs). These units have already made investments of approximately USD 5.38 Billion. Further, around USD 284 Million has been invested in the infrastructural development of the PCPIR.
India’s long coastline and large refining capacity will further complement the growth of the PCPIRs. The current infrastructure and facilities in the PCPIRs are being marketed through various exhibitions, road shows and interactions in order to attract investments from foreign as well as domestic players. Upon its completion, the four PCPIRs in India are expected to attract investments worth USD 117 Billion and create 3.4 million jobs. 14
The 2019 PCPIR Rejuvenation Study, orgnized by FICCI and their knowledge partner Mott MacDonald, highlights the continuous development of Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR), its current scenario and government’s roadmap for policy interventions to rejuvenate investment in PCPIRs. It has stated that India is the sixth largest producer of chemicals in the world and contributes 3.4% to the global chemical industry. The chemicals market in India has grown at 3% over the last decade. The industry comprises of 13.38% of manufacturing GVA and 2.39% of National GVA which employs about 2 million people.
The Government of India adopted a policy in 2007 to set up Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR). Currently there are four identified regions — Dahej (Gujarat), Vishakhapatnam (Andhra Pradesh), Paradip (Odisha) and Cuddalore (Tamil Nadu). However, due to a wide range of issues (ranging from overall infrastructure development to project financing), attracting investment to Vizag, Paradip and Cuddalore has been relatively challenging in comparison to Dahej. Considering the overall scenario, the government has now planned for policy interventions to rejuvenate investment in PCPIRs.
The Indian Chemical & Petrochemical Industry is currently witnessing a rapid expansion. The untapped potential of this industry needs to be addressed which holds the power to bring a revolution in the country. The industry is expected to grow at a CAGR of 9.3% from USD 163 billion to USD 304 billion market by 2025, which not only emphasizes the important role it can play in the growth of Indian economy but to become the global leaders in petrochemicals and emerge itself as world’s next manufacturing hub.
The PCPIR Rejuvenation Study connotes the chemicals market in India has grown at 3% over the last decade, current development and policy interventions to rejuvenate investment in PCPIRs.
The government’s initiative towards successful implementation of Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR), shoring up existing infrastructure to world class level is truly commendable.

Smart Cities

• The Government of India has launched the Smart Cities Mission on 25 June 2015.

• The objective is to promote sustainable and inclusive cities that provide core infrastructure and give a decent quality of life to its citizens, a clean and sustainable environment and application of ‘Smart’ Solutions.

• The focus is on sustainable and inclusive development and the idea is to look at compact areas, create a replicable model which will act like a lighthouse to other aspiring cities. The Smart Cities Mission is meant to set examples that can be replicated both within and outside the Smart City, catalysing the creation of similar Smart Cities in various regions and parts of the country.

• Some of the core infrastructure elements in a Smart City would include adequate water supply, assured electricity supply, sanitation, including solid waste management, efficient urban mobility and public transport, affordable housing, especially for the poor, robust IT connectivity and digitalization, good governance, especially e-Governance and citizen participation, sustainable environment, safety and security of citizens, particularly women, children and the elderly and health and education.

• The strategic components of the Smart Cities Mission are city improvement (retrofitting), city renewal (redevelopment) and city extension (Greenfield development) plus a Pan-city initiative in which Smart Solutions are applied covering larger parts of the city.

• Area-based development will transform existing areas (retrofit and redevelop), including slums, into better planned human settlements, thereby, improving liveability of the whole cities. Development of well-planned and fully serviced new areas (greenfield) will be encouraged around cities in order to accommodate the rapidly expanding population in urban areas. Application of Smart Solutions will enable cities to use technology to improve infrastructure and services.

• Comprehensive development in this way will improve quality of life, create employment and enhance incomes for all, especially the poor and the disadvantaged, leading to inclusive cities.

Selection Process

The selection process of Smart Cities is based on the idea of Competitive and Co-operative Federalism and follows a Challenge process to select cities in two stages.
In January 2016, based on the All India Competition, 20 smart cities were selected in Round 1 (Annexure-I). 13 more Smart Cities were selected in May 2016 in fast track round (Annexure-II).
In Round 2, 63 potential smart cities participated of which, 27 Smart Cities have been selected in September 2016 (Annexure-III).
In Round 3, 45 potential smart cities participated of which, 30 Smart Cities have been selected in June 2017 (Annexure-IV).
In Round 4, 15 potential smart cities participated of which, 9 Smart Cities have been selected in January 2018 (Annexure-V).
A total investment of Rs.2,01,981 crore has been proposed by the 99 cities under their smart city plans. Projects focusing on revamping an identified area (Area Based Projects) are estimated to cost Rs. 1,63,138 crore. Smart initiatives across the city (Pan City Initiatives) account for the remaining Rs. 38,841 crore of investments.
The implementation of the Smart Cities Mission is done by a Special Purpose Vehicle (SPV) to be set up at city level in the form of a limited company under the Companies Act, 2013 and will be promoted by the State/UT and the Urban Local Body (ULB) jointly both having 50:50 equity shareholding. After selection, each selected Smart Cities have to set up SPVs and start implementation of their Smart City Proposal, preparation of Detailed Project Reports (DPRs), tenders etc.
The SPV will convert the Smart City Proposal into projects through Project Management Consultants (PMCs) and implementation thereafter.
Smart Cities India is all set to become the most-populous country in the world by 2030, making it the home to the biggest and the most under-penetrated market for global manufacturers and service providers. Unlike its preceding generations, this growing population is also shifting to top tier cities of the country giving rise to new megacities estimated to generate 80% of economic growth, with potential to apply modern technologies and infrastructure, promoting better use of scarce resources.
As per estimates, about 25–30 people will migrate every minute to major Indian cities from rural areas in search of better livelihood and better lifestyles. With this momentum, about 843 million people are expected to live in urban areas by 2050. To accommodate this massive urbanization, India needs to find smarter ways to manage complexities, reduce expenses, increase efficiency and improve the quality of life.
With this context, Prime Minister Narendra Modi’s vision “Digital India,” has set an ambitious plan to build 100 smart cities across the country. Modi in his speech quoted, “Cities in the past were built on riverbanks. They are now built along highways. But in the future, they will be built based on availability of optical fiber networks and next-generation infrastructure.”
The Government of India allocated INR70.6 billion (US$1.2 billion) for Smart Cities in Budget 2014–15. Given the sheet scale of the development plan, the public resources would largely be insufficient and the government is working on envisaging new financing routes to boost the program.
The government machinery is working on putting together the standards for executing this mega plan, and identifying the cities to be developed in consultation with states. A few smart cities are already coming up across the country, including Kochi Smart City, Gujarat International Finance Tec-City (GIFT) in Ahmedabad, Naya Raipur in Chhattisgarh, Lavasa in Maharashtra and Wave Infratech’s 4,500-acre smart city near New Delhi.
India has also been inviting foreign partnership in developing the smart cities and has signed deals to build eight cities — three with Germany, three with the US, and one each with Spain and Singapore.
India’s Smart City plan is part of a larger agenda of creating Industrial Corridors between India’s big metropolitan cities in India. These include the Delhi-Mumbai Industrial Corridor, the Chennai-Bangalore Industrial Corridor and the Bangalore-Mumbai Economic Corridor. It is hoped that many industrial and commercial centres will be recreated as “Smart Cities” along these corridors. The Delhi-Mumbai Industrial Corridor (DMIC), which is spread across six states, seeks to create seven new smart cities as the nodes of the corridor in its first phase.
Interestingly, these corridors are developed by the Indian Government in collaboration with foreign governments who are keen to find their domestic private enterprises new avenues of investment. Japan is helping India develop its smart cities by investing US$4.5 billion in the first phase of the DMIC project through lending from the Japan International Cooperation Agency (JICA). JICA has also taken up master planning for three “Smart Cities” — Ponneri in Tamil Nadu, Krishnapatnam in Andhra Pradesh and Tumkur in Karnataka — in the Chennai-Bangalore Industrial Corridor. The UK is collaborating with India for developing the Bangalore-Mumbai Economic Corridor project with the help of private companies from Britain.

Eight critical pillars of India’s Smart City Program are:

1. Smart Governance: Investments of about US$1.2 trillion will be required over the next 20 years across areas such as transportation, energy and public security to build smart cities in India. Highlights:

US$1.2 billion allocated for smart cities and FDI norms relaxed
US$83 million allocated for Digital India Initiative
PPP Model to be used to upgrade infrastructure in 500 urban areas
Smart City projects to create 10–15% rise in employment
Ministry of Urban Development has plans to develop 2 smart cities in each of India’s 29 states
Delhi Mumbai Industrial Corridor Development Corporation Ltd (DMICDC) plans seven “smart cities” along the 1,500 km industrial corridor across six states with a total investment of US$100 billion

2. Smart Energy: Three crucial dimensions of smart energy systems are: Smart Grid

Electrification of all households with power available for at least 8 hours per day by 2017
Establish smart grid test bed by 2014 and smart grid knowledge centre by 2015
Implementation of 8 smart grid pilot projects in India with an investment of US$10 million

Energy Storage

Addition of 88,000 MW of power generation capacity in the twelfth five year plan (2012–17)
India needs to add at least 250–400 GW of new power generation capacity by 2030
The Power Grid Corporation of India has planned to invest US$26 billion in the next five years
Smart Meters
India to install 130 million smart meters by 2021

3. Smart Environment: Three crucial dimensions of ensuring sustainable development are: Renewable Energy

Ministry of New and Renewable Energy has plans to add capacity of 30,000 MW in the 12th Five Year Plan (2012–17)
Water and Waste Water Management
The Indian Ministry of Water Resources plans to invest US$50 billion in the water sector in the coming years
The Yamuna Action Plan Phase III project for Delhi is approved at an estimated cost of US$276 million
Sanitation
About 67% of the rural population continues to defecate in the open, and India accounts for about 50% of the world’s open defecation
The Government of India and the World Bank have signed a US$500 million credit for the Rural Water Supply and Sanitation (RWSS) project in the Indian states of Assam, Bihar, Jharkhand and Uttar Pradesh

4. Smart Transportation: The Government of India has set ambitious targets of developing public transportation system to support the ever growing urban populace. Green Transport

The Government of India has approved a US$4.13 billion plan to spur electric and hybrid vehicle production by setting an ambitious target of 6 million vehicles by 2020
Electric vehicle charging stations in all urban areas and along all state and national highways by 2027 Railways
Metro: Ministry of Urban Development plans to invest more than US$20 billion on the metro rail projects in coming years
High Speed Rail: The proposed 534 km Mumbai-Ahmedabad high speed rail project will have an investment of around US$10.5 billion
Monorail: India’s first monorail project at Mumbai will cost around US$500 million, of which US$183 million has been spent on phase I

5. Smart IT & Communications: Information and Communications Technology

Cloud computing will evolve into a US$4.5 billion market in India by 2016
Broadband connections to 175 million users by 2017

Security and Surveillance

Under the flagship “Safe City” project, the Union Ministry proposes US$333 million to make seven big cities (Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Bangalore and Hyderabad) to focus on technological advancement rather than manpower Disaster Management
The Government of India and World Bank signed US$236 million agreement for reducing disaster risks in coastal villages of Tamil Nadu and Puducherry

6. Smart Buildings:

India is expected to emerge as the world’s 3rd largest construction market by 2020, by adding 11.5 million homes every year
The Intelligent Building Management Systems market is around US$621 million and is expected to reach US$1,891 million by 2016
Smart Buildings will save up to 30% of water usage, 40% of energy usage and reduction of building maintenance costs by 10 to 30%

7. Smart Health Hospitals

Health budget up by 27% in FY 2014–15 to US$5.26 billion, with special focus on improving affordable healthcare for all
To establish six new AIIMS like institutes and 12 government medical colleges in the country
Accessible, affordable and effective healthcare system for 1.2+ billion citizens

Insurance

FDI limit in the insurance sector increased to 49% from 26%
Insurance industry has potential to reach US$1 trillion by 2020

Medical Devices

Indian medical devices market to reach US$11 billion by 2023
100% FDI allowed in the medical devices sector under the automatic route
Wellness
Indian wellness industry is expected to reach around US$16.65 billion by 2015

8. Smart Education: The Government of India has allocated US$13.95 billion in the Union Budget 2014–15 for the education sector, up by 12.3% from the previous year.

Budget has allocated US$78.5 million to set-up five new IITs and five new IIMs
The Ministry of Human Resource Development plans to have 1,000 private universities for producing trained manpower to meet services and industry requirements
100% FDI allowed in the education sector
India’s online education market size expected to be US$40 billion by 2017