CEPT University School of Planning Smart Cities 2014
THE COMPROMISE
THE CORRIDOR
THE CONDITIONS
2
THE CONDITIONS
1 2 3 4 5 6 7
1. 2. 3. 4. 5. 6. 7.
Delhi Haryana Rajasthan Gujarat Maharashtra Uttar Pradesh Madhya Pradesh
HIGHLIGHTED is the contribution of these seven states to GDP, Industrial Output, etc. Src : Muhleck (2013);Authors
3
THE CORRIDOR
4
5
Corridor and Impact Area Src : Authors
The Delhi-Mumbai Industrial Corridor Project is a State-Sponsored Industrial Development Project of the Government of India. It is a $100 billion ambitious project aimed at developing Industrial zones spanning across six states in India which would spur economic development in the region and develop industries. It would be the biggest infrastructure project India has ever attempted in its history. The project will see major expansion of Infrastructure and Industry – including smart cities, industrial clusters along with rail, road, port, and air connectivity – in the states along the route of the Corridor. Many smart cities would be developed alongside, such as the Dholera SIR in Gujarat, which is envisaged to be 6 times the size of Shanghai and 2 times the size of Delhi. The backbone of the project would be the Dedicated Freight Cor-
6
Nodes, Impact Area and National Context Src : ( Ministry of Statistics & Programme Implementation, ASI, Labour Bureau, 2013)
ridor that would cut the logistical costs of manufactured goods to make it the lowest in the world. India needs to employ over 100 million people within the next decade and so this project is of vital importance to develop manufacturing centres that could employ millions. The ambitious Delhi Mumbai Industrial Corridor (DMIC) has received major boost with India and Japan inking an agreement to set up a project development fund. The initial size of the Fund will be 10 billion. Both the Japanese and Indian governments contribute equally. The corridor would include six mega investment regions of 200 square kilometres each and will run through six states Delhi, Western Uttar Pradesh, Southern Haryana, Eastern Rajasthan, Eastern
Gujarat, and Western Maharashtra. The corridor, spread across 2,700 km with an additional 5,000 km of feeder lines connecting Mumbai to West Bengal. Distribution of DFC in six States Uttar Pradesh 22 km (1.5%) NCR of Delhi 115 km (1.5%) Haryana 130 km (10%) Rajasthan 553 km (39%) Gujarat 565 km (38%) Maharashtra 150 km (10%).
AIM
The developmental planning for DMIC aims to achieve certain end results with implementation that would ensure realization of envisaged vision for the project and lead to economic development.
Principal Agglomerations in Impact Area Src : ( Ministry of Statistics & Programme Implementation, ASI, Labour Bureau, 2013)
Dadri – Noida Ghaziabad IR, UP Manesar – Bawal IR, Haryana Neemrana – Khushkhera – Bhiwadi IR, Rajasthan Pithampur- Dhar - Mhow IR, MP Ahmedabad – Dholera IR, Gujarat Shendra - Bidkin Industrial Park, Maharashtra Dighi Port IA, Maharashtra
DMIC Nodes Phase 1 Src : ( Ministry of Statistics & Programme Implementation, ASI, Labour Bureau, 2013)
Accordingly the project goals for DMIC are: • Double employment potential in five years • Triple industrial output in five years • Quadruple exports from the region in five years The total employment to be generated from the project is 3 million, the bulk of which will be in the manufacturing/processing sectors. The ambitious project will be funded through privatepublic partnership and foreign investment. Japan will be a major investor for this project. It will include a 4000 MW power plant, three seaports and six airports in addition to connectivity with the existing ports. The industrial corridor project will be implemented by the Delhi-Mumbai Industrial Corridor Development Corporation, an autonomous body composed of government and the private sector. India is urbanizing rapidly with 40.76% of Indians, expected to be living in Urban areas by 2030 from 31.16% in 2011. This ongoing process of urbanization would create huge stress in the current existing cities which are already unable to support the rapid growth under poor infrastructure support. In the current scenario, this would prove to be an impediment to India’s continuing economic growth. One of the main goals of this mega project would be the development of numerous new cities to create new centres of economic activity in the country. These new globally benchmarked cities aim would be superior to the existing cities in terms of infrastructure, planning, city management and services. Some of the big notable cities are already in various stages of development such as Gujarat International Finance TecCity, Dholera SIR and a Knowledge city near Ujjain.
VISION FOR DMIC
The vision for DMIC is 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 to be conceived as a Model Industrial Corridor of international standards with emphasis on expanding the manufacturing and services base and develop DMIC as the ‘Global Manufacturing and Trading Hub’.
7
8
Implementation Strategy Src : (Department of Industrial Policy & Promotion , 2007)
9
INSTITUTIONAL FRAMEWORK
Master plans are ready for seven brand new cities spanning six states in what will be the biggest urban development project .Their key features are compact, vertical developments, an efficient public transportation system, the use of digital technology to create smart grids for better management of civic infrastructure, recycling of sewage water for industrial use, green spaces, cycle tracks and easy accessibility to goods, services and activities designed to foster a sense of community. This Industrial Corridor includes developments of all means of transport including renewing or establishment of airports and seaports in the corridor cities, building and expansion of roadways and rail networks. Later 17 more cities are planned to be developed on a similar pattern. A total of 24 such new generation cities are being planned for phased development across UP, Haryana, Rajasthan, Madhya Pradesh, Gujarat and Maharashtra.
Budget Breakdown for First Phase and Financial Partners Src : ( Ministry of Statistics & Programme Implementation, ASI, Labour Bureau, 2013)
The first phase will see seven of them opening their doors by 2018-19. The processes of acquiring land, getting government clearances and generating investment have already started. Plans are also in place to integrate these cities through new airports, new rail links and arteries of ten-lane highways. The creation of a new urban vision was not the original intention, though. The DMIC was an economic and commercial initiative of the government, intended to boost manufacturing through the development of industrial centres along the western leg of the Mumbai-DelhiKolkata dedicated railway freight corridor the estimated cost of building the new cities varies from Rs 300 billion to Rs 750 billion at current prices, depending on their size.
The central and state governments will carry the burden of financing trunk infrastructure while a public private partnership model is being tried out for the first time to build houses, schools, hospitals and other facilities. “The master plans for the cities are unique in that an effort has been made to look at the future by putting in infrastructure ahead of the demand. “We have planned for 2040,� said Kant. Some of the innovative ideas are - For instance, each city will have underground utility corridors for parking, sewage disposal and communication lines to give it a neat look and leave enough space for facilities that are missing in most existing cities, like pavements, parks and cycle tracks. The transportation axis is designed to discourage the use of private vehicles. The emphasis will be on dedicated bus and light rail corridors. The rule that the planners have tried to follow is that some form of public transport should be available within a 10-minute walk from home or office. Eventually, the success of these cities will depend on the way they are managed and promoted. This will require a strong administrator who works like a city-CEO, the way most mayors are in many big and successful cities.
10
Smart
11
THE COMPROMISE
12
13
Funding
The funding for the DMIC is proposed through three channels: Public Private PPP The principal issue with the DMIC funding mechanism is that the loans that are required for the first phase, which has been close to 90 billion US$, will be procured from Japanese banks in the form of YEN loans. These YEN loans will necessitate the use of Japanese Technology. This in itself may not be the best alternative for the projects. It will also limit the possibilities for Indigenous innovation in technology. Such a large reliance on the foreign loans is also improper due to the SCALE of the project. The project has been conceived to cater to over 200,000 sq. km. and therefore the contingencies involved with the project are also very high. The scale also affects multiple states, but the composition of the apex body, which is the DMIC steering committee, is political, with representatives from the centre and the state governments. This will inevitably result in delays in the implementation of the project as the local issues like land acquisition and individual decisions become political propaganda points. A project of such a large scale and time span must be kept free from the threat of political strangleholds. Also the technology intensive nature of the project raises the question of whether the life span of the technology is worth the implementation and maintenance costs of the technology. The requirement of our constitution to have urban bodies to be democratically elected will result in inevitable mismanagement of new cities as they will take time to populate themselves. As these new cities are planned to grow as industrial areas this might create an atmosphere of unhealthy competition in the governance of new cities. The environmental challenges of such rapid industrialization will create a need for strict control and monitoring which in itself is highly susceptible to corruption.
The Applicability of the western Smart Model in an Indian Context
The western model of a smart approach is a principally ICT based model, and this is a system that is applicable irrespective of the context of the city that it is being applied to. But having this approach as a priority for development in India is a false impression of the priorities and an improper allocation of funds as these systems require the citizens to be educated and comfortable with the use of digital ICT. I know of a case where a USB Bluetooth for a computer mouse was assumed to be a USB pen drive and stolen, rendering the mouse useless, and no particular benefit to the
thief himself. You can only imagine the way an uninformed and uneducated public will respond to an ITC intensive city. There are several examples of such technology and systems being spontaneously developed by the people themselves as they need to. It is another false notion to assume that we are incapable of indigenous innovation in ICT. Being Smart in the conceptualization and the implementation of a project needs to involve the public in the development of the projects. New solutions, employment oppurtunities and cheaper, simpler ways of achieving the project objectives may be found if the poorer and weaker sections of the society are involved. Smart policies and projects need to be inclusive, economical and sustainable, both socially and environmentally. This requires a new approach to innovation, one that focuses on what is most important to achieve, keeping in mind that one of the largest resources that we have available is human capital. This new approach will set its own degrees of smartness, its own benchmarks and it will keep in mind the trade-offs that need to be made as it generates spontaneous social and economic development.
BIBLIOGRAPHY
Ministry of Statistics & Programme Implementation, ASI, Labour Bureau. (2013). Delhi Mumbai Industrial Corridor Project. Retrieved 09 02, 2014, from Chambre de commerce du MontrĂŠal mĂŠtropolitain: http://www.ccmm.qc.ca/~/media/Files/EventDocuments/International/2013/13_12_12_3_indeIndustriel.pdf Department of Industrial Policy & Promotion . (2007). Concept Paper - Delhi Mumbai Industrial Corridor. New Delhi: Ministry of Commerce & Industry.
14
15