Land allocation in DMIC gathers pace as big anchor investors arrive
19 Mar 2018
Micromax and South Korea’s Hyosung among firms setting up in greenfield smart cities
The Delhi-Mumbai Industrial Corridor (DMIC) project has now shifted into high gear as land allocations begin in smart cities that are taking shape on the ground, promising massive investments and job opportunities, and driving the Make in India mission.
Across DMIC projects where trunk infrastructure layout is progressing at a rapid pace, 37 companies have been allotted land, totalLing approximately 130 acre, with the Shendra-Bidkin node, dubbed Aurangabad Industrial City (AURIC), in Maharashtra taking the lead.
The 100-acre parcel for South Korean conglomerate Hyosung Corporation to set up a Rs 3,000 crore manufacturing facility in Shendra marks the biggest land allocation to date in any DMIC project, signalling the arrival of major anchor investors who will drive the growth of these cities.
Hyosung, the world’s leading manufacturer of spandex, is expanding its production in India which the company sees as a key market. In the first phase, which Hyosung plans to initiate by April 2018 with production to start by May 2019, the company expects to generate around 1,000 jobs.
Besides this, AURIC, which covers an approximate area of 4,500 acre in Phase-1 and offers the added advantage of being in proximity to a thriving industrial area, has allocated a total of 20 acre to 35 small and medium enterprises.
DMIC’s upcoming industrial node in Greater Noida, Uttar Pradesh, with a spread of over 747.5 acre and excellent connectivity, has also been attracting investor attention.
Electronics major Micromax is among the early investors in IITGNL, having acquired around 10 acre with planned investments to the tune of Rs 500 crore and employment for nearly 500 people. The site offers many natural advantages to industries such as Hi-tech electronics, IT and ITES, Biotech, Pharma and R&D.
Another rapidly progressing node of DMIC, Dholera in Gujarat, is similarly expected to begin land allocations soon. With a total footprint of over 920 sq km, Dholera is the biggest of the eight industrial smart cities being developed in Phase-I and is currently being implemented over an activation area of 22.5 sq km (roughly 5,600 acre).
Plots in Dholera are available ranging from five hectares to 100 hectares in contiguous land parcels that can be aggregated to up to 750 hectare, eminently suitable for large manufacturers in aviation, defense, electronics, pharmaceuticals, textiles, heavy engineering, etc.
In Vikaram Udyogpuri Industrial Township near Ujjain in Madhya Pradesh, coming up over an area of 1,100 acre, the major industries targeted are automobiles and auto components, Agro food processing, textiles, renewable energy, electronic systems, electrical machinery, IT and ITES and biotechnology.
Alkesh Sharma, CEO & Managing Director, DMICDC, said, “Unlike conventional SEZs and industrial zones, the DMIC cities are inherently designed to offer a ‘live-work-play’ environment with high-quality life for residents. Besides the industrial zones, there are investment opportunities in infrastructure development in the designated commercial, residential zones.”
He added that all special purpose vehicles implementing the city projects have marked ease of doing business as a top priority and have adopted a transparent, accessible, single window e-allotment system, with conveniences including GIS mapping and online applications. Across the DMIC, large, contiguous, litigation-free parcels of land are being offered to set up industries.
Another big advantage for businesses coming to DMIC is world-class “plug-and-play” infrastructure offered at the plot level. All utilities have been laid underground and guaranteed 24 x 7 power and water supply is available at the doorstep. ICT networking of the cities has been done at the right at the planning stage.
Nearly all environment and state clearances for industrial use are already obtained, high-polluting and red category industries have been completely excluded to ensure sustainability, and a host of incentives are on offer for manufacturers.