Comprehensive Integrated Master Plan for Chennai- Bengaluru Industrial Corridor Region August 2015 Presentation by JICA Study Team
Chennai-Bengaluru Industrial Corridor (CBIC) Overview 1 Background 2 Overview of CBIC Region & Growth Potential 3 Masterplan for Selected Nodes 4 Regional Infrastructure Projects 5 Institutional Structure 6 Way Forward
Section 1 Background PwC August 2015 1
Industrial Corridors are being planned as the drivers of industrial growth and employment creation to achieve target set in National Manufacturing Plan. Delhi-Mumbai Industrial Corridor Amritsar- Kolkata Industrial Corridor DMIC and CBIC are being supported by GoI and GoJ. National Manufacturing Plan Targets Bengaluru- Mumbai Economic Corridor Chennai- Bengaluru Industrial Corridor Proposed Coastal Economic Regions under Sagarmala ~15% y-o-y growth in manufacturing sector to achieve 25% contribution to GDP by 2022 100 million jobs by 2022 Skill development for inclusive growth Improved technology orientation & value addition Global Competitiveness Environmental sustainability
Key milestones 1 December 2011 Joint Statement between Government of Japan(GOJ) and Government of India (GOI) 3 October 2013 Appointment of JICA Study Team ( PwC & Nippon Koei ) for preparation of regional perspective plan and master plan for select identified nodes in CBIC 5 September 2014 Submission of Development Plan for selected Nodes in CBIC 2011 2012 2013 2014 2015 2 July to October 2012 Preliminary study on the CBIC region from covering identification of critical bottlenecks in transportation and energy sectors. key priority projects were identified for fast tracking and regular monitoring at the PMO level. 4 6 March 2014 Submission of Regional perspective plan March 2015 Draft Final Reports covering Master plan for 3 selected Nodes in CBIC have been submitted.
Section 2 Overview of CBIC Region & Growth Potential PwC August 2015 4
Section 2 Overview of CBIC Region & Growth Potential CBIC Region is anchored by two biggest urban clusters in India. Region boasts of fast growing industrial and manufacturing ecosystem around Chennai and Bangalore Draft Urbanisation Population Area 90,059 sq km 2.9% of India 47.5 million 3.73% of India 51% vs. 31% all India Tumakuru Node Krishnapatnam Industrial Node Ponneri Node Literacy Workers ratio PwC 78% vs. 73% all India 50.8% vs. 46% all India * Chittoor, Anathapur and Nellore are part of CBIC region High population density, greater urbanization & literacy rate Higher propensity of Japanese companies to locate along the corridor: 1,229 Japanese entities are located in Tamil Nadu(577), Karnataka(395) and Andhra Pradesh(257). ( in 2014) CBIC region currently accounts for 6 % of National GDP August 2015 5
CBIC vision envisages disruptive interventions in hard and soft infrastructure to achieve 15% p.a growth in manufacturing to meet NMP targets Draft Global Manufacturing Centre Be known as a global leading manufacturing centre towing world economic growth and generating national employment opportunities. Leading Innovation Hub Be known as the leading innovation hub and knowledge capital of India through presenting innovative progress in industrial sector. Top Investment Destination Be one of the top three preferred investment destinations in Asia and the most preferred in India with high efficiency and competitiveness. Model of Inclusive Growth Exhibit a model of inclusive growth pattern and ensure high level of environmental standards. Objectives Goals Key sectors Thrust to economic growth Global competitiveness Employment creation Prioritizing sustainable development Thrust to manufacturing and MSME PwC 12-15% corridor GDP growth for next 2o years Boost exports and value addition in key sectors Skill development & 22 million manufacturing job creation Environmental sustainability and reduced emissions 25% contribution from manufacturing sector to GDP Computer, electronics and optical products Automobiles Machinery and Electrical Machinery Pharmaceuticals Food Processing Textiles and Apparels August 2015
Business Induced Scenario aims to achieve the NMP plan targets in CBIC Draft 40 Corridor GDP in Rs. '000 Bn Rs. 38,000 Bn 35 30 25 20 15 10 5 - Short term Medium term Long term 4 4 4 5 5 6 6 7 7 8 8 9 10 10 11 12 13 14 21 16 17 B I S + Rs. 17,000 Bn B A U Growth Indicators Land demand* Corridor GDP growth rate Manufacturing sector contribution to GDP Employment - Manufacturing Sector Business As Usual (BAU) 37,172 acres Business Induced Scenario (BIS) 166,274 acres 8-9% 12-13% 16% 25% 3 mn 18 mn 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 PwC August 2015 7
Potential sectors based on Competitive Advantages, Factors of Production and Location Benefits identified for each node Draft Krishnapatnam Node Chitradurga: Metallurgy Anantapur Anantapur: Metallurgy Machinery Pharma Resource-driven Industries Hub Food Processing Metallurgy Electrical equipment Chemicals & Petrochemical Nellore Chitradurga Chittoor: Ponneri Node Tumakuru Node Tumakuru Bangalore Rural Chikkaballapur Kolar Food Processing M & EM Auto Chittoor Engineering Hub Auto and Auto Components Machinery Chemicals & Petrochemical Computer, Electronic and Optical Components Thiruvallur High-tech Manufacturing Hub PwC Bangalore Urban Auto and Auto Components Ramanagara Computer, Electronics and Optical Products Machine Tools Aerospace IT Krishnagiri Dharmapuri Krishnagiri: Medical Equipment M & EM Vellore Tiruvannamalai Chennai Kancheepuram Kancheepuram: Pharma CEO Textiles M & EM Auto Chennai: Pharma CEO Chem & Petrochem M & EM Auto August 2015 8
Section 3 Masterplan for Selected Nodes PwC August 2015 9
Eight Nodes have been identified based on land availability and growth potential. Three Nodes have been selected for prioritised implementation Krishnapatnam Industrial Area (12,274 Acres) 3 2 Hindupur Tumkur NMIZ (13,293 Acres) Bidadi Hosur Mulbagal Kalikiri Ponneri Industrial Area (21,966 Acre) 1 Hosur Industrial Area (2,700ha) 1210
Holistic Infrastructure Development vision set up to create sustainable economic growth through improved industrial competitiveness
Industrial Development is aligned with Node s traditional strengths and Unique Selling Propositions. Ponneri Tumakuru Krishnapatnam USPs Engineering Hub for Auto & Machinery Advanced Technology centric industrial hub north of Bengaluru Industrial Hub for Resourcedriven Industries Traditional sectors Traditional sectors Traditional sectors Existing Growth Sectors Automobiles and auto components Chemicals & Petrochemical Machinery Computer, Electronic and Optical Components Auto components Computer, Electronic and Optical Components Textiles and Apparels Pharma Food processing Food processing Metallurgy Electrical equipment Chemicals & Petrochemical Textiles and Apparels Pharma Sunrise Sectors Potential sectors Metallurgy Electrical machinery Textiles and Apparels Pharmaceuticals Medical equipment Potential sectors Electrical Machinery Machinery Chemicals and petrochemical Metallurgy Aerospace Potential sectors Automobiles Machinery Computer, Electronic and Optical Components Medical equipment
1 Ponneri Node, Tiruvallur District, Tamil Nadu Krishnapatnam, AP Tumakuru, Karnataka 3 2 1 Ponneri, Tamil Nadu
Ponneri node is ideally located near Katupalli and Kamarajar Ports to serve both domestic and international markets Ponneri Node Kattupalli & Kamarajar Ports Chennai City Centre Chennai Airport Location Connectivity & Accessibility Located in Tiruvallur District 36 km from city center of Chennai Adjacent to Kattupalli port and Kamarajar Port 10 km from SH 56 30 km from NH 5 Nearest Rail head is at Minjur-5 Km 50 Km from Chennai Airport 16
Competitive advantage for Auto & Auto components, Chemicals & Petrochemicals and Machinery sector to be located in Ponneri Auto and Auto components Existing of automobile clusters located in Tamil Nadu. Presence of strong manufacturing base provide the entire value chain. Tamil Nadu has a share of around 21.2% in the total automobile exports from India. Tamil Nadu is also the 2nd highest state in terms of the number of vehicles registered in India with a CAGR of 12% in last decade. Chennai and Ennore ports which are the major automobile export terminals. Government formulated Tamil Nadu Automobile and Auto Components Policy 2014 to promote competitiveness Chemical and Petrochemical Manali in Tiruvallur district is hub for petrochemical industry. Tamil Nadu has catered 257 sq.km of land for upcoming PCPIR(Petroleum, Chemicals and Petrochemicals and Petrochemicals Investment Region) Presence of value-chain several internationally and nationally renowned manufacturers, like DCW, CPCL, BASF, SANMAR, ASAHI, etc. Chemical and petrochemical industry is linked to the growth of auto and textile sector Machinery Over the past decade, investment to the tune of Rs. 8,582 crore has taken place in Tamil Nadu. Existing industry base concentrated in North-eastern part of the state-giving way for an established supply chain. Tamil Nadu is one of the leading states in terms of availability of skilled workforce and hosts large number of famous engineering colleges and institutions
Ponneri Node Node masterplan includes trunk and civic infrastructure Waste Treatment Facility Chennai Phase Phase 1 & 2 Logistics hub to NH-5 Phase 3 Total to Chennai Area Status 4,448 Acres Land Available with Government Agencies 2,718 Acres Existing Port Area 5,667 Acres Land with existing development/crz 9,133 acres Land to be Acquired 21,966 Acres Projected Demographics (~2025) Working population: 888,074 Residential Population: 400,000 18
External Connectivity is being planned for swift movement of workers and goods to Nellore 6 lanes 4 lanes Northern Port Access Road Ponneri Node SH2 Chennai City Centre Name of the Project Chennai Outer Ring Road 9 (Phase I and Phase II) Peripheral Road from Mamallapuram 10 to Ennore Widening of NH-5 and Northern Port Access Road to 6-lanes is proposed Connectivity to the north and south will be enhanced by improving SH-104 and SH-2, the greenfield ORR and the proposed PRR. 1 -Project Conceptualized 2 - Feasibility / DPR under progress State Cost Status Tamil Nadu Rs.2,156 cr 5 Tamil Nadu Rs.9,057 cr 3 1 2 Nemmeli WTP II (Seawater Desalination) Tamil Nadu Rs.1,372 cr 3 Perur WTP (Seawater Desalination) Tamil Nadu Rs.4,070 cr 3 5 New 4 lane elevated road connecting Chennai Port and Maduravoyal Tamil Nadu - 5 3 - Feasibility / DPR Complete 4- Under procurement/ Implementation Status 5 - Under construction
Capacity augmentation of Kamarajar (Ennore) Port is under implementation Projects in Ennore Port Ennore Port Name of the Project Chennai Port 1 -Project Conceptualized PwC 2 - Feasibility / DPR under progress Cost Status Development of Container Terminal 1 at Ennore Port Rs. 1,270 crore 5 Additional Multi-Cargo Terminal Development at Ennore Port Rs. 140 crore 5 3 - Feasibility / DPR Complete 4- Under procurement/ Implementation Status 5 - Under construction
Roads and railway connectivity projects are under implementation Road Projects Name of the Project C State A A A B B B D Northern Port Access Road for connectivity to Ennore Port Tamil Nadu Development of Coastal Road to the east of Container Terminal II at Tamil Chennai Port Nadu (Strengthening of existing revetment at eastern seashore of Chennai Port) Estimated Status Cost Rs. 400 crore 3 Rs. 50 crore 5 Railway Projects Name of the Project State Estimated Status Cost C C Rail link to Ennore Port from the Tamil North of Minjur Railway station on Nadu the Chennai Gudur line Rs. 170 crore 2 D D Rail link from Avadi to Tamil Guduvancherry via Sriperumbudur Nadu and Oragadam Rs. 1295.81 crore 2 Note: Alignments shown are for illustrative purposes only Railway line Road PwC 1 -Project Conceptualized 2 - Feasibility / DPR under progress 3 - Feasibility / DPR Complete 4- Under procurement/ Implementation Status Slide 21 5 - Under construction
Ponneri Node has a total equity funding requirement of Rs. 12,249 crores. Further node development will be funded through loans and accruals Item Phase I Upto FY 19 Phase II Phase III FY 20-24 FY 25 onwards Capital Structure (Rs. Crore)) Total %age Land acquisition 9,351 4,158 0 13,509 41% Land devpmt. 1,735 2,066 1,833 5,633 17% Roads 1,234 232 1,340 2,806 9% 96 1 19 116 0% Railway Water and Effluent Treatment Solid Waste 432 458 5,285 6,175 19% Equity, 12592, 38% Debt, 9814, 30% Cumulative Land Offtake (Acres) 12000 10000 3 51 335 389 1% 8000 6000 4000 Power infrastructure 68 391 2,475 2,933 9% Contingency 178 160 564 903 3% Interest During Construction 217 31 0 249 1% 13,31 4 7,547 11,851 32,713 100% Total PwC Internal Accruals, 10307, 32% 2000 0 Land absorption to take between 13-19 years
2 Tumakuru Node, Tumakuru District, Karnataka Krishnapatnam, AP Tumakuru, Karnataka 3 2 1 Ponneri, Tamil Nadu
Ideally located close to Bengaluru economic hub and well connected with nearby Industrial Clusters, Node will derive agglomeration benefits from regional economic activity Tumakuru Node Tumakuru City to Mangalore Bengaluru Airport Bengaluru City Centre Location of Tumakuru Node Located in Tumakuru district 80 km from city centre of Bengaluru 20 km from Tumakuru city 170 km from Mysore city 93 km from Bengaluru Airport Connectivity and Accessibility 350 km west of Krishnapatnam port and 360 km west of Ennore port 250 km east of Mangalore port but with constrained connectivity 105 km from Bengaluru Inland Container Terminal 24
Tumakuru Node has the potential to become globally competitive in Electronics, Auto components, Food Processing sectors Computer Electronics & Optical Product 80km from Bengaluru, which houses more than 2000 IT companies and approximately 750 MNCs Bengaluru has best institutions and research centers dedicated to Electronics (IISC, ISRO) Millennium Policy for Electronics System Design & Manufacturing Tumakuru identified as part of Electronics Manufacturing cluster in under M-SIP(Modified Special Incentive Package) scheme which provide financial incentive Auto and Auto Components Presence of major OEM players, Tier I, Tier II suppliers forming the entire value chain of the industry in proximity of the node at Hoskote, Bidadi and Dharwad. Access to 3 ports both Mangalore (west) and Chennai, Ennore and Krishnapatnam Ports (east) Tumakuru is strategically located at the centre of fast growing domestic car markets in Gujarat, Maharashtra and Tamil Nadu. Proximity to R&D base in Bengaluru Food Processing Tumakuru is major production center of commercial crops- groundnut, areca nuts and other major crops such as Paddy, Ragi, Maize, Cereals & minor millets and pulses. Vasanthanarsapura Mega Food Park already established in the Node GoK formulated Integrated Agribusiness Development Policy 2011.
Node development plans includes civic and social infrastructure and linkages to brownfield development Direct connectivity between existing industrial area and newly development area is enhanced by interchange Sira Phase C Vasantha Narsapura Industrial Area (Brown field) Tumakuru Node (Green field) Tumakuru Node Tumakuru Phase A Phase B Phase Area(acres) Vasantha Narsapura Industrial Area Phase 1,2,3 3,666 Tumakuru Node Phase 4, 5,6 9,627 Total 13,293 Status Land Acquired and allotment is in progress Acquisition in progress. Phase 4 land acquisition process for 1722 acres complete Projected Population (2025~) Working population: 498,365 Residential Population: 280,000
External Road and Rail Connectivity enhancement are being planned to supplement existing NH4 and with Satellite Towns around Bengaluru 8 lanes 6 lanes 4 lanes NH-4: Existing 8 lanes highway SH-84: Upgraded to 4 6 lanes Peripheral Ring Road Satellite Town Ring Road (STRR) Individual Town Ring Road (ITRR) 4 laning project of DobbespetHoskote Section of NH-207 BMRDA Connection to East: Upgraded 4 lanes SH NH-48 (to Hassan) BDA SH-85 (to Magadi) BBMP Name of the Project PwC Estimated Cost Status Peripheral Ring Road (Bengaluru) Rs. 9,620 3 Satellite Town Ring Road (STRR) Individual Town Ring Road (ITRR) STRR: Rs. 3,060 crore ITRR: Rs. 2,440 crore 3 4 laning project of Dobbespet-Hoskote Section of NH-207 ( part of STRR) August 2015 Rs.720.69 25 5 Crore
Draft Equity funding requirement of Rs.4,862 Crores out of total Investment plan of Rs. 13,700 crores is being met by State Government and DIPP Phase I Phase II Phase III Upto FY 19 FY 20-24 FY 25 onwards 4,862 0 0 52 163 Roads 864 Railway Item Land acquisition Land Development Water and Effluent Treatment Solid Waste Capital Structure (Rs. Crore) Total %age 4,862 35% 478 693 5% 290 614 1,768 13% 68 9 63 140 1% 806 608 1,586 3,000 22% Internal cash generation, 3049, 23% Equity, 4862, 37% Debt, 5394, 40% Cumulative Land offtake (acres) 10000 56 189 927 1,172 9% 8000 6000 Power infrastructure 118 258 584 959 7% Contingency 197 152 425 773 6% Interest During Construction Total PwC 4000 2000 0 2015 138 90 119 7,162 1,759 4,795 347 13,716 3% 100% 2020 2025 2030 Land absorption to take between 15-21 years August 2015 27 2035
3 Krishnapatnam Node, Nellore District, Andhra Pradesh Krishnapatnam, AP Tumakuru, Karnataka 3 2 1 Ponneri, Tamil Nadu
Node will leverage it proximity to rapidly developing Krishnapatnam Port and other proximate Industrial Parks at Sricity and Naidupeta Nellore City Krishnapatnam Port Krishnapatnam Node Naidupeta Tirupati airport Location Nellore district 40 km from Nellore city 170 km from city center of Chennai Sri City Connectivity 10 km from Krishnapatnam Port 90 km from Tirupati airport
Growth Drivers for Key Sectors have been identified for Krishnapatnam Node to be a Industrial Hub for Resource-driven Industries Food Processing Nellore district is primary sector intensive., providing high inputs base of raw material such as principal food crops, ground nut, chillies etc. Primary sector contributes 29% to GDDP (2010-11) Well established food processing sector, contributing the largest manufacturing output; 58%. Food processing has been announced as one of the thrust sectors for Andhra Pradesh under Industrial Development Policy 2015-20 Proximity to KPT port -Favourable location for exports Metallurgy A rich mineral base and industrial setup for metallurgy products Rapidly growing sector CAGR 41% (2005-2011) KPT Node is favorably located in immediate vicinity to the Krishnapatnam port. Electrical Machinery Engineering MSME units are the second largest MSME group present in Nellore district (12% in terms of number and 17% in terms of investment), serving as ancillary base KPT Industrial Node is favourably located in immediate vicinity to the Krishnapatnam port (imports of raw material) and perspective exports
Port Krishnapatnam Node is planned to leverage urban centre in nearby Nellore District Krishnapatnam * Additional land in the north (Thamminapatnam village) is planned to be included as future expansion area Naidupeta Projected Population (2025~) Working population: 582,706 Residential Population: 200,000 Phase Area Phase I 5,501 Acres Phase II 8,470 Acres Additional Land* 1,697 Acres Total Status Land available with KPIL and APIIC 8% acquired, 92% under acquisition 50% acquired, 50% under acquisition 13,971 Acres Total Land
External Connectivity for the Node will be augmented through four new road projects connectivity it to NH5 at multiple locations Nellore Port access road A B C Naidupeta D Krishnapatnam Node New road Adequate access for road traffic in all directions. Reduce travel time to Chennai via new 8 lane road through Naidupeta LRT from/to Krishnapatnam Node is proposed for commuters from surrounding areas (esp. Nellore City). A: B: C: D: PROPOSED ROADS Tamminipattinam to Muthukur Road Tamminipattinam to Krishnapatnam Port Road via Varagali Vellapalayam to Chillakur/Gudur Siddhavaram to Naidupeta 8 lanes 6 lanes to Chennai 4 lanes PwC 33
Krishnaptanam Node and Port will be connected to the Chennai Bengaluru corridor through upgradation of National Highway corridor Krishnapatnam Node C D B A Name of the Project State Estimated cost Status A Four laning of NH-4 stretch from Mulbagal to Andhra Pradesh border Karnataka Rs. 141.11 crore 5 B Four laning of NH-4 from Andhra Pradesh border to Chittoor Andhra Pradesh Rs. 500 crore 1 C Four laining of NH-18 A from Chittoor to Renigunta Andhra Pradesh Four laining of SH-6(NH-71) from Renigunta to Naidupeta Andhra Pradesh D 1 -Project Conceptualized 2 - Feasibility / DPR under progress 3 - Feasibility / DPR Complete Rs. 600 crore 4- Under procurement/ Implementation Status 1 1 5 - Under construction
Total expected investment requirement is Rs.18,548 Crores. Part of the equity requirement could be fulfilled through private sector participation 886 669 1,290 2845 15% Railway 80 5 27 112 1% Water and Effluent Treatment 837 843 3,080 4,760 26% Solid Waste 28 39 220 288 2% Power infrastructure 137 412 767 1,316 7% Contingency 103 107 296 506 3% Interest During Construction 78 81 120 279 2% 9,887 2,321 6,340 18,548 100% Roads Total Debt, 7976, 43% Land Offtake (Acres) 9000 8000 7000 6000 5000 4000 3000 2000 1000 0 Land absorption to take between 17-23 years 2033 4% 2031 795 2032 540 2030 165 2029 90 Land devpmt. Equity, 7648, 41% 2028 41% 2027 7,648 2025 0 2026 0 2023 7,648 Internal Accrual s, 2924, 16% 2024 %age 2021 Total 2022 FY 25 onwards 2020 FY 16-19 FY 20-24 Capital Structure (Rs. Crore) 2019 Land acquisition Phase III 2018 Item Phase II 2017 Phase I
Total equity investment requirement of Rs. 26,019 crore for land acquisition, rest funded through debt & internal accruals Item Total Node Krishnapatnam Development Costs (crores) Ponneri Tumakuru 13,509 4,862 7,648 26,019 Land development cost 5633 693 795 7,121 Roads 2,806 1,768 2845 7,419 116 140 112 368 Water and Effluent Treatment Facilities 6,175 3,000 4,760 13,935 Solid Waste Management 389 1,172 288 1,849 Power infrastructure cost 2933 959 1,316 5,208 Contingency 903 773 506 2,182 Interest During Construction 249 347 279 875 32,713 13,716 18,548 64,977 Land acquisition cost Railway Total
Section 4 Regional Infrastructure Projects PwC August 2015 35
Priority Infrastructure Projects in CBIC Region Draft Chennai Bengaluru Industrial Corridor 21st August 2015 PwC August 2015 36
Corridor Connectivity Projects in CBIC region include Chennai Bengaluru expressway and High Speed Rail. Dedicated Freight Corridor may have a long term potential. Tumakuru Node will be connect to the main Line Krishnapatnam Node Ponneri Node Tumakuru Node Key Name of the Project Estimated cost Status TBC 2 Rs. 517 crore 5 Chennai Bengaluru Express Way Rs. 6,783 crore 2 Tumakuru Davanagere New Line Rs. 1,837 crore 3 Chennai Bengaluru High Speed Railway Link Line upgradation of some sections along Chennai Bengaluru route PwC
Investments of approximately USD 181bn required over 20 year period for the CBIC region Investments by Sector (USD mn) Transport Short Term (up to 2018) Medium Term (2018-23) Long Term (2023-33) Total (USD mn) 6,423 11,231 9,236 26,890 Airports 287 3,236 777 4,299 Ports 1,126 2,525 3,830 7,481 Railway 2,130 804 2,574 5,508 Roads 2,774 2,087 1,843 6,704 Logistics Urban Transport 196-196 106 2,383 213 2,702 25,051 17,270 66,968 109,289 5,574 3,861 3,603 13,038 Solid Waste Management 120 26 60 206 Water 5,454 3,835 3,542 12,831 6,326 3,652 22,392 32,370 43,374 36,014 102,199 181,587 Energy Utilities Industrial infrastructure Grand Total Notes: 1. Investments are based on the time of actual project need and hence may be required earlier 2. The investments over the long term reflect BIS outcome expectations and would require calibration based regional economic development patterns PwC
Section 5 Institutional Structure
The proposed National Industrial Corridor Development Authority (NICDA) will be an Apex authority for Corridor Development. At the Central Level Monitoring Cell PMO & Embassy of Japan Apex Authority (Proposed National Industrial Corridor Dev. AuthorityNICDA) Industrial Corridor Cell in Depts. Of: NHAI Shipping Railway Board CBIC Corridor Unit DMICDC, BMEC & other Corridor Units Proposed National Industrial Corridor Development Authority (NICDA) to oversee all industrial corridor development in India including DMIC NICDA will act as a project development partner to all SPVs and State Government agencies for implementation of industrial cities/projects in the various industrial corridors CBIC corridor unit to be formed below NICDA Key central agencies such as NHAI, Ministry of Shipping & Railway Board will be represented on the NICDA Board. They may form special cells within each department to facilitate planning, implementing and monitoring of critical external infrastructure projects Monitoring cell comprising of PMO and Japan embassy to form apex level monitoring body PwC
Each State Government will form SPV (Special Purpose Vehicle) for Node development as the local area authority PMO and EoJ as Monitoring Cell Coordination with Ministries and State Governments NICDA / DIPP A project development partner PMU PwC Tamil Nadu State Nodal Agency TIDCO Andhra Pradesh State Nodal Agency APIIDC Karnataka State Nodal Agency KSIIDC Ponneri Node SPV Krishnapatnam Node SPV Tumakuru Node SPV NICDA TIDCO CEO GoTN owned PSU s Chennai, Ennore & Kattupalli Ports Private sector-developer/codevelopers NICDA INCAP/APIIC Private sector - Krishnapatnam Infratech Pvt. Ltd. NICDA KSIIDC Private sectordeveloper Co-developers SPV functions Project Execution on link & internal infrastructure projects Coordination of trunk infrastructure
Section 6 Way Forward PwC August 2015 42
Draft Action Area Objective / Function Key Recommendation / Actions Support planning and implementation of Masterplan Support investment facilitation in the Node Institutionalise collaboration between Japan and India Establish PMU to support planning and implementation of Masterplan to promote Industrial Node through developing marketing material and investor roadshows Quarterly monitoring meeting to review progress of corridor development Priority Project Expedite the priority project Establish Corridor Units in each Line Ministry Set up funding from GoI/State and Japan to actually drive forward the project Investment Environment Improvement Implement Ease of Doing Business Initiatives Programme support for implementing Procedural and Infrastructure solutions for implementing Ease of Doing Business Industry Competitiveness Skill Development, R&D and Technology transfer Encourage private participation in Industrial Node development Concept of Industrial Knowledge Park to be developed Private Sector Participation in Node Development Allow Private Sector to become part of the Node SPVs Derive efficiency benefits Attract anchor tenants Node SPVs to include private sector participation MoU could be signed with International Development agencies or Anchor Tenants Anchor Tenants could participation in Node Development Seminar/Workshop Conduct Seminars /Workshops for dissemination of CBIC Master Plan Seminars are being planned in Tamil Nadu, August 2015 Karnataka, Andhra Pradesh and Japan. CBIC Programme Implementation at Central and State level PwC
Draft Expected timeline Procurement/ Preparation Indicated Programme of Work 2015-2017 Draft Completion 2015 Final Completion/ Commissioning Aug Sep Oct 2016 Nov Dec Jan Feb Mar Apr May Jun 2017 Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July * * Central Activity 1 Formation of NICDA State Activities 2 3 4 a b c 5 a b c d Land acquisition Land allotment Formation of Node SPVs Finalisation of SSA and SHA Institutional Structure Created Node SPV mobilised and resources SPV Activities Environmental Impact Assessment Detail Engineering Study and Design Final evaluation of cost estimates Financial Closure 6 Trunk Infrastructure Construction 7 Marketing Activities a b 8 SPV Marketing Initiatives Roadshow/Seminar Monitoring Committee Meeting PwC * * * * * * August 2015 46 Aug
Thank you This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers Pvt Ltd, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. 2015 PricewaterhouseCoopers Pvt Ltd. All rights reserved. In this document, PwC refers to PricewaterhouseCoopers Pvt Ltd which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.