EXECUTIVE SUMMARY Comprehensive Development Plan of Economic Corridor

Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment) CONTENTS

1. ECONOMIC CORRIDOR ...... 1 1.1. INTRODUCTION ...... 1 1.2. PROJECT CORRIDOR AREA- EXISTING SITUATION ASSESSMENT ...... 1 1.3. DEMAND ASSESSMENT ...... 4 1.4. COMPREHENSIVE DEVELOPMENT PLAN ...... 5 1.4.1. DISPOSITION OF ACTIVITIES ...... 6 1.4.2. TRANSPORTATION INFRASTRUCTURE AND ROAD DESIGN ...... 9 1.4.3. INFRASTRUCTURE REQUIREMENTS ...... 12 WASTE WATER TREATMENT ...... 13 SOLID WASTE MANAGEMENT ...... 13 POWER DEMAND ESTIMATION AND SOURCE IDENTIFICATION ...... 13 1.5. PROJECT COST AND FINANCIAL VIABILITY ASSESSMENT ...... 13 1.5.1. PROJECT COSTING ...... 13 1.5.2. PHASING STRATEGIES ...... 14 1.5.3. FINANCIAL VIABILITY ...... 15 1.6. PROJECT IMPLEMENTATION FRAMEWORK ...... 17 1.6.1. OPTIONS FOR INSTITUTIONAL ARRANGEMENT ...... 17 OPTION 2: EXTENSION OF JURISDICTION OF AKVN INDORE OR OTHER EXISTING CORPORATION IN THE STATE ...... 17 OPTION 3: NEW DEVELOPMENT AUTHORITY MODEL ...... 17 OPTION 4: EXTENSION OF JURISDICTION OF INDORE DEVELOPMENT AUTHORITY (IDA): ...... 17 1.6.2. LAND PROCUREMENT ...... 17 1.6.3. PPP OPTION ...... 18 1.7. WAY FORWARD ...... 19

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1.1. INTRODUCTION 1. Economic Corridor is one of the four Early Bird Projects proposed as part of development of Pithampur- Dhar-Mhow Investment Region in the Madhya Pradesh Sub-Region of Delhi Mumbai Industrial Corridor (DMIC). 2. The proposed Economic Corridor, from Indore Airport to Pithampur Industrial Area (PIA), is anticipated as an economic growth axis and a transport link connecting the influence area of city of Indore and Industrial Area of Pithampur. Due to increasing industrial and business activities in this region, there is a need to tap potential of the region to promote planned development for non-polluting industries, business, skill development and knowledge centres, residential, recreational and social infrastructure. 3. The proposed economic corridor is approximately 20.3 km (as per the chosen final alignment) in length and it is proposed that 300m area on either side of the corridor would be developed as part of the project. Figure 1 presents the selected alignment of Economic Corridor.

Figure 1 : Selected Alignment of the Economic Corridor

1.2. PROJECT CORRIDOR AREA- EXISTING SITUATION ASSESSMENT 4. Economic Corridor traverses through predominately flat terrain except the presence of small hillocks rising about 20-25 meters from normal ground level. Main natural feature in the immediate Influence area is River Gambhir which runs south to north. Project area thus has a network of smaller natural drains running east to west at regular interval. 5. The proposed economic corridor traverses through Indore, Mhow & Depalpur Tehsils of Indore District and Dhar Tehsil of Dhar District. The corridor would have a direct impact on 17 villages, which fall in Indore (11), Depalpur (2), Mhow (3) and Dhar (1) tehsils respectively.

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6. Three sections of the corridor show distinct land use characteristics. Section I, from Airport to NH-59, is dotted with big institutional properties, like Bijasan Temple, Hinkar Giri Tirth Temple and College, Shri Jain Shwetamber Professional Academy. The section also contains a few up-coming housing complexes being developed by Emmar MGF Township, Vajpayee Group Housing etc. Within this section, the project corridor runs through Village Kordia Barda and takes a left turn near the Police Post. The stretch between the Police Post and the NH-59 is flanked by agricultural fields on both the sides. Section II of the Corridor, from NH-59 to Rau-Pithampur road again passes through predominately agricultural land. Two villages falling in this stretch are Sindoda and Shri Ram Talawali. Intersection of this section at Rau-Pithampur road is marked by STI and one educational institute, namely Lord Krishna College of Technology. Section III, along Rau-Pithampur Road, has only one village settlement of Bheslay. This section also crosses river Gambhir and ends at the GAIL sub-station at the start of Pithampur Industrial Area. 7. In terms of existing land use, about 76% of the land, within the 300 meters belt, is under agriculture followed by 6.3% under manufacturing. Small village settlements constitute about 4.6% land area. 8. In terms of regional connectivity, corridor is envisioned to be an important link between three existing roads • Depalpur road connects inner city of Indore to Tehsil Head quarter of Depalpur and the entry to Indore Airport is also situated along it. • NH-59 connects Indore city with district head quarter of Dhar. • Rau-Pithampur road forms an important link between NH-3 and Pithampur industrial area and joins Mhow-Dhar highway near Pithampur Sector 1. 9. As part of the traffic surveys, Traffic Volume Counts (TVCs) are conducted for 3 days and 24 hours at the Indore Airport end and1 day at ICD Dhannad. Apart from this, TVCs and Road Side ODs are also conducted at 6 locations on the Outer Cordon and One location in Inner Cordon of Pithampur Industrial Area (PIA). From the traffic data analysis it is observed that 2,649 vehicles per day are moving between Pithampur and Indore through the existing airport road. Similarly, 12,266 vehicles per day are moving between Pithampur and Indore through the existing Rau road. OD analysis shows that on an average 53,979 passenger trips are moving between Pithampur and Indore, 1,395 trips are moving between Pithampur and Ujjain, 51,427 trips are moving between Dhar and Indore and 3,674 trips are moving between Dhar and Ujjain. 10. About 10% of land falling within 300 meter development zone of Economic Corridor belongs to Government. Detail analysis of villages with regard to type of government land shows that only grazing land is available for the purpose of development and it is about 60 ha. 11. About 910 ha of land is available for development within the 300 m belt of Economic Corridor. Refer Table 1 and Figure 2 for availability of total developable land along the corridor. In assessing the total land availability following land uses and activities has been eliminated owing to certain special characteristics and implications. • Existing Village settlement • Regional Drainage Network • Existing Roads. • Proposed projects like Airport Expansion, NH-59 widening and ongoing residential developments have also been expelled from the total area calculations. • As per the AAI guidelines, areas falling in the conical 3-dimensional surface measured with regard to air-strip have also been excluded from the area assessments. Table 1: Potential Areas for Development

Section Developable Land available within 300 m (Ha)

Section I 321.2 Section II 394.1 Section III 194.4

Total 909.7

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Figure 2: Potential Land Parcels for Development 12. Apart from the site related aspects, other regional development and upcoming projects have bearing on the development of Economic Corridor as discussed below: • Indore BRTS Network: Indore BRTS plan is under implementation and a Terminal is proposed near the Airport. Extension of BRTS from the Proposed Terminal at the end of Super Corridor to Pithampur along Economic Corridor is an important aspect for connecting Indore and Pithampur by a public transport link. • Indore Master Plan 2021: Some portion of the Economic Corridor is part of Indore Master Plan 2021 and use of applicable development regulations of Indore Master Plan for activities proposed along Economic Corridor is a logical option. • Integration of Super Corridor: Higher order city level commercial and institutional facilities along Economic Corridor are required for functional integration of Economic Corridor with Super Corridor and positioning the Corridor as a regional artery. • Investment Region and Green-Field Township: Economic Corridor has the potential of becoming a Flagship Project for the proposed Green-field Township with nodal development at the intersection of major Investment Region roads.

Figure 3: Economic Corridor and Important External Projects/Schemes

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1.3. DEMAND ASSESSMENT 13. The Market Potential and Demand Assessment for Economic Corridor have been carried out under five broad aspects. The indicators for establishing the market potential are comprehensively chosen to place role of Economic Corridor in the context of it being a link between Pithampur Industrial Area and Indore City, a flagship project for Pithampur-Dhar-Mhow Investment Region, and a potential Economic and Industrial Infrastructure resource center for the immediate influence area of the IR. The parameters for Market Potential and Demand Assessment are as follows • Development and Growth Trends in Influence Region • Investment Climate • Market Potential Surveys and Target Group Consultation • Benchmarking Studies • Site Assessment Led Potential 14. Based on the study of above aspects, SWOT analysis for Economic Corridor has been carried out as presented in Table 2. Table 2: SWOT ANALYSIS Strengths Opportunities • Green-field Site, hence very high possibility of imageable • Proposed road projects connecting the area with larger region in development the Development Plan • Presence of Airport and Pithampur Industrial Area in vicinity • Investor-friendly Industrial and IT policy • Presence of important road links like NH-59, Rau-Pithampur • Upcoming mega projects in the influence zone Road and Mhow-Pithampur Road, which provide crucial • Interdependency between Indore and Pithampur and gradually connectivity with other areas increasing demands of the large commuter population between • Strong Business and Industrial base in Influence Region and the Pithampur and Indore emerging urban belt along Rau-Pithampur road • Potential Location of MMLH and Investment Region • Availability of potentially developable land parcels • Growing demand for Services and established history of trade • Extension of Upcoming Super Corridor and commerce of Indore • Potential Integration with Urban Nodes in the Region like Rau, Dewas and Ujjain • Central Location of Indore-Pithampur in India for Logistics Infrastructure Development • DMIC as a mean to leverage support infrastructure for industrial growth in the region • Emergence of Knowledge Hub in the form of Indore-Ujjain region for ample human resource availability and hence requirement for creation of job opportunities. • Inadequate availability of water can foster development of less- water consuming industries like IT/ ITes, Service sector etc. Weakness Threats • Lack of existing support and infrastructure facilities • Resistance for Land acquisition • Located in under-developed western part of Indore city • Inadequate Water and Power Supply • Presence of existing villages within the corridor • Competition from other parts of the city- NH3-Bypass and Super • Lack of direct connectivity with the main city of Indore Corridor • Absence of large parcel under government holding • Competition from other Investment nodes in DMIC 15. Based on the demand assessment, some the primary activities that have been identified for the Economic Corridor are summarized below • Service Sector-IT/ITeS, • Integrated Residential Townships, • Business and Leisure Tourism activities, • Logistics and Warehouse • Non-polluting engineering industries. 16. Apart from the above listed activities, certain support activities that clearly emerge as a result of the comprehensive analysis are: • Commercial activities- shopping malls, multiplex, Hotels etc

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• Support business facilities to industries and Hotels. • Social facilities like Medical Hub and Education Cluster • Recreational and Entertainment spaces. 17. For assessing the demand of facilities for Economic Corridor, two level analyses have been undertaken. One, the existing deficiencies of urban sectors in Indore and two, future demand of facilities in Indore and its region in light of natural growth of Indore and Investment Region proposals. Table 3 summarizes the phase-wise additional demand of various functions in the Indore Region and Immediate Influence Area Table 3:Phase-wise Additional Demand in Indore Region and Immediate Influence Area of Economic Corridor (in Ha) 2011 2021 2031 Land Use Indore Region Influence Area Indore Region Influence Area Indore Region Influence Area

Residential 6275 5531 9706 4490 13960 8643 Commercial 1320 805 1105 504 2511 1229 Public Semi-Public 213 754 1411 691 2080 1371 Industrial 307 513 2027 844 3712 1307 Transport 2235 1593 2200 976 4618 2411 Recreational 1375 937 2012 1037 4212 1881

1.4. COMPREHENSIVE DEVELOPMENT PLAN 18. The primary intent of the Economic Corridor is to attract economic activities and growth which will spur regional economic development, especially in the light of Madhya Pradesh Sub-region of DMIC. It is envisaged to create an Economic Corridor which is a major generator of employment, multi product in its economic base, infrastructure led development, and which can help in re-visioning the associated region. The corridor can carry the seed of promoting Indore and Pithampur region from being branded as Tier III city to Tier II city in the country having an international image. Figure 4 provides significant strategies for development of the Economic Corridor. Figure 4: Strategies for Development of Economic Corridor

• Economic Corridor as a generator of Employment, • Economic Corridor as a quality public transport link and corridor, • To reduce economic divide between east and Strategies for west parts of the Indore city, Development of • Act as a flagship project for the Investment Region, Economic Corridor • As a connector between city of Indore and future Investment region, • Play a diverse economic and infrastructure role to become a resource for future in the region.

19. In principle, the main components of the economic base of the corridor are IT/ITES industries, Business Infrastructure, Institutions and R&D Centres, Tourism and Recreational facilities, Residential, and Non-polluting Industries. A brief highlight of the proposed economic base of the project is given below. • The multi products/ activitys which can form part of the corridor to determine its economic base are IT/ITes, Tourism and Recreational Industry as gateway to the region, Fashion Industry for value addition to Textile Industry, Health Infrastructure, and other Non-Polluting Manufacturing Industries for value addition to the industrial profile of the region. • Education and R&D infrastructure would be developed for supporting the above mentioned clusters or economic activities.

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• Development of essential support residential and social infrastructure in order to create a sense of secure environment even during the late hours of the day. • Provision of business and commercial infrastructure that would promote and market industries and other value addition industries. • Laying of quality public transport and road infrastructure for providing connectivity to the corridor which would be instrumental in achieving economic success of the corridor. • Provision of sustainable water, power and energy, waste management infrastructure to support the main economic base. • It is also imagined that the economic corridor can become an economic base for the region as a whole, if it is well connected, and not just promoted as a link between Indore Airport and Pithampur Industrial Area.

IT and ITES and Business and Tourism and Residential & Institutions related Commercial Recreational Support Social and Health institutions Infrastructure Facilities Infrastructure Infrastructure

Multi Product/Activity Led Economic Base

R&D, Vocational Quality Public Non‐Polluting Industry & Trade Training Transport Link, Industries Promotion Infrastructure Indore, PIA, IR Infrastructure

Figure 5: Main Components of Economic Base of the Corridor which is likely to act as a regional economic infrastructure resource.

1.4.1. Disposition of Activities The market studies, stakeholder consultations and benchmarking studies conducted for the project, have duly ascertained that a multi-product or cluster based approach for the corridor would be more viable. Thus, the urban form and structure of the Corridor have been defined by cluster or nodal developments that impart a distinct image to the three sections of the Corridor. As part of Comprehensive Master Plan, disposition of these activities has been carried out in the form of 9 broad activity clusters, as illustrated in Figure 6 . Section I: From Airport to NH-59 Intersection This particular section of Economic Corridor lies close to Airport and rest of Indore city. NH-59 also provides a good connectivity to this area. Further the Development Plan-2021 also proposes termination of Super Corridor near the Airport. Four activity clusters are proposed in this section of the Economic Corridor: a. Terminal Cluster: This activity cluster is planned keeping into consideration the BRTS Terminal proposed near the Airport. As per Indore BRTS Plan, two bus corridors, Ujjain Road to Airport and Airport Road to River Corridor, are terminating at this terminal. As part of the Comprehensive Development Plan, it is envisage that BRT system can be extended from this terminal to Pithampur and proposed Investment Region along Economic Corridor, thus making this cluster as an inter-change point between the three BRT routes. Keeping the inter- change benefit of this location, it is proposed to develop this cluster as an integrated terminal station with Support facilities, Offices and Commercial spaces. b. IT/ITeS Cluster: This cluster is planned along the section starting from BRT terminal upto the Airport Approach Funnel. Main considerations for the location of this cluster are: • Proximity to Indore City and availability of potential skilled human resource

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21DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED EXECUTIVE SUMMARY OF COMPREHENSIVE Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment) DEVELOPMENT PLAN OF ECONOMIC CORRIDOR

Figure 6: Cluster Disposition along Economic Corridor

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EXECUTIVE SUMMARY OF 21DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED COMPREHENSIVE DEVELOPMENT Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment) PLAN OF ECONOMIC CORRIDOR

• Proximity to BRT Terminal for convenience of potential work-force • Proximity to Indore Airport which is under expansion and thus likely to connect with other cities in India with more aircraft movement • Provision in the IT Policy for promoting IT industry near airports of the State and possibility of drawing the resultant benefits • Nodal Development at the intersection of Super Corridor and Economic Corridor and future employment areas for Western region of Indore • As part of this cluster, IT/ITeS related space and other support commercial and residential spaces have been proposed. c. Recreational Cluster: This cluster has been proposed in the influence zone of the airport approach funnel, primarily owing to the restrictions in the building height. The location selected for the cluster also takes cognizance of the Indore Master Plan-2021, wherein similar land use has been proposed. Further, this cluster has been proposed to cater to IT/ITeS cluster in north and Tourism cluster in south with complimentary functions like Clubs, entertainment parks, Golf Courses etc. d. Tourism Cluster: Tourism cluster has been conceived near the intersection of Economic Corridor with NH-59. Major considerations for this location are: • Proximity to NH-59 connecting tourism destinations like Mandu towards west and Maheswar, Omkareshwar towards South via NH-3. • Accessibility to Ujjain via Super Corridor • Proximity to Indore Airport • Proximity to IT/ITeS cluster having potential of generating Business Tourism facilities. • Indore as a leisure and business tourism centre, identified in the Tourism Policy of the State and resultant benefits As Indore lies in the centre of Heritage-Religious triangle comprising of places like Ujjain, Maheswar, Mandu and Omkareshwar, improved accessibility with the development of road infrastructure (Super Corridor, Economic Corridor, Nh-3 bypass and NH-59) provides an opportunity to integrate tourism facilities in the immediate vicinity of airport at this location. The tourism cluster is thus conceived as an integrated node comprising of Star Hotels, Budget Hotels, tourism centres, shopping etc. Section II: NH-59 to Rau-Pithampur Road This section of Economic Corridor connects NH-59 with Rau-Pithampur Road and runs through the Green-field Township proposed as part of Concept Plan of Investment Region. The section is envisaged as a major urban corridor for the proposed Township, with creation of commercial nodes at important road intersections and institutional/ residential conurbations between these nodes, thus resulting in three mixed use clusters. a. Mixed Use Cluster 1: This cluster is planned from the intersection of NH-59 to village Sindoda. At the intersection of NH-59 a commercial node has been proposed to consolidate tourism cluster. Land parcels fronting the Economic Corridor are proposed as an institutional belt along with Public functions. A second layer of residential has been proposed behind institutional belt in order to integrate the development along Economic Corridor with residential township sectors. Along the natural lines green belts are proposed to segregate incompatible uses. b. Mixed Use Cluster 2: This cluster is proposed at the intersection of IR-Central Artery with Economic Corridor. This intersection has been proposed as a main city level commercial node for Green Field Township and along either side of this node institutional and residential linear development is proposed. c. Mixed Use Cluster 3: This cluster is proposed near the intersection of Rau-Pithampur road. Treatment of this cluster is quite similar to the mixed use cluster 2, wherein a linear institutional and residential treatment has been proposed for the developable land along Economic Corridor. Section III: Along Rau-Pithampur Road This section is characterized by existing industries, educational institutions and warehouses. Existing urban development is being consolidated in the form of two clusters along this section of Economic Corridor.

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EXECUTIVE SUMMARY OF DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED COMPREHENSIVE DEVELOPMENT Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment) PLAN OF ECONOMIC CORRIDOR a. R&D and Industrial Cluster: This cluster is located between the STI intersection and River Gambhir. Along the Rau Pithampur Road, lot of new colleges have recently come up after the establishment of IIM Indore and as part of Comprehensive Plan, it is proposed to consolidate the R&D functions till village Bhesley. Remaining part of the section is proposed as non-polluting industrial belt in the context of Pithampur Industrial Area. b. Industrial and Expo Cluster: This cluster is closest to Pithampur Industrial Area and already exhibits some industrial activity. Non-polluting industrial activity is proposed in this cluster. An Exhibition and Trade Promotion Centre is also proposed to mark the entry of Pithampur Industrial Area. The Centre is being conceived to house exhibition spaces, business support functions and hotels, which would give an impetus to the industrial growth of the region. 20. Table 4 provides land use distribution of Economic Corridor and Figure 8 shows the proposed land use. Table 4: Proposed Land Use Break-up of Economic Corridor LAND AREA Land Area Built Up Area LANDUSE (in Hectares) (% age) (in million sqm) Commercial(City Centre, Sub-City Centre) 96.16 8.3 1.41 Residential 93.26 8.0 1.25 IT And ITeS 152.55 13.1 1.56 IT- Residential 16.95 1.5 0.29 Tourism (Hotels, Amusement Parks, Theme Parks Etc) 52.72 4.5 0.50 Institutional (State Govt Offices, Training Institutes Etc) 91.09 7.8 0.89 R&D 54.24 4.7 0.53 Non Polluting Industries 159.2 13.7 0.84 Exhibition And Trade 38.3 3.3 0.38 Public Facilities (Educational, Health, Utilities) 16.07 1.4 0.11 Terminal Facilities (BRT Terminal+ Commercial) 31.9 2.7 0.50 Greens (Entertainment, Regional Park, Golf Course Etc.) 222.02 19.1 0.16 Roads 138.82 11.9 0.00 TOTAL 1164.2 100.0 8.41

1.4.2. Transportation Infrastructure and Road Design 21. The total traffic demand assessment of the Economic Corridor has been carried out with regard to the activities proposed along the Corridor and surrounding land uses. Based on the traffic projections and existing situation analysis, road design has been proposed. The Figure 7 shows that the peak hour traffic flow in PCUs. From the analysis it is observed that the peak hour traffic flow in PCUs 1894 at EC C1, 7389 at EC C5, 12,226 at EC C1, 12091 at EC C6 and 10545 at EC C6 for the years 2011,2016,2021,2026 &2031 respectively.

Figure 7:Peak hour traffic flow on 9 clusters in PCUs

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DELHI MUMBAI INDUSTRIAL CORRIDOR DEVELOPMENT CORPORATION LIMITED EXECUTIVE SUMMARY OF COMPREHENSIVE Consultancy Services for Preparation of Development Plan for Pithampur-Dhar-Mhow Investment Region of Madhya Pradesh sub-region of DMIC (Category-2 Assignment) DEVELOPMENT PLAN OF ECONOMIC CORRIDOR

Figure 8: Proposed Land Use Distribution

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22. Table 5 shows the number of traffic lanes required for economic corridor for the period from 2011 to 2031. Table 5: Traffic Lane Requirement for Economic Corridor Section 1 and 2 2011 2016 2021 2026 2031 Service Road 0 0 2X2 2X2 2X2 Main Carriageway 4 4 4 6 6 Public Transport 0 0 2 2 2 Section 3 2011 2016 2021 2026 2031 Main Carriageway 4 4 6 6 6 23. After Engineering surveys and road investigations, following strategies and design features have been adopted for the road design of the Economic Corridor: • Cross-Sectional Elements: The proposed right of way is 60 m from start of Section I and end of Section II. Existing right of way along Section III is 30 m and is adopted full. The carriageway width for mixed traffic adopted as 7 m with 0.25m kerb shyness. The carriageway width of service roads adopted is 6.25m on both sides all along the section I and II. Central width of 7.5 m has been provided for dedicated bus lane. The width of paved shoulder is 1.5m and adopted separator width is 2 m on 60 m RoW cross section and 2 m median is provided on 30m RoW cross-section. The typical cross-section adopted for 30m and 60 m RoW is presented in Figure 9. • Alignment Design: A digital terrain model for the alignment has been generated and designed centre line is followed to widen the existing road concentrically to four lane along with dedicated bus lanes in the centre and service roads on either sides for first two sections and six lane divided road with central median of 2m for third section. Minor changes have been made in order to straighten the alignment as far as possible. The corridor has few curves which are designed for 50-60 kmph speed. The vertical levels for existing sections of the corridor are maintained same as existing and the levels of the green-field alignment is raised on an average to 1m above the ground level. • Design of Junctions: The geometric design of junctions have been done taking into account the site conditions, turning movement characteristics, level of services, overall economy and operational safety. There are 5 major and 9 minor junctions across the project road.

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Figure 9:Cross Section of the Economic Corridor

• Pavement Design: It is evident from visual inspection and pavement surveys that pavement has deteriorated extensively and roughness of the pavement is also high. It is proposed to dismantle the existing pavement completely and provide a new pavement with concentric widening in Section I. In section III, the pavement is considerable better but approximately central half of the pavement will be required to construct the central verge. On both sides of the proposed median about 2m wide strip of pavement will be available which can become part of the proposed carriageway but from technical consideration it is not advisable to make use of such narrow strip. Thus, it is proposed to dismantle the existing pavement and provide new pavement on both sides of the median. For pavement composition, flexible pavement design has been proposed as shown in Table 6. Table 6: Flexible Pavement Design for 150 MSA Chainage (km) Pavement Thickness (mm) Design CBR of Granular Traffic Subgrade Binder Granular Total From To Wearing Course (mm) Sub-base (MSA) (%) Course (mm) Base (mm) (mm) (mm) 00 6.95 150 5 50 150 250 300 750 6.95 14.022 150 5 50 150 250 300 750 14.022 20.300 150 5 50 150 250 300 750 • Ground Improvement: The soil all the along the corridor is predominately black cotton soil with highly clay and silt content. It is recommended that a ground improvement is essentially carried out for entire corridor. The ground improvement is proposed at this stage with replacement of 200mm existing soil below 500mm sub-grade. Bottom of 200mm ground improvement layer is provided with geo-grid reinforcement on well compacted base. Above such geo-grid reinforcement, the 200mm compacted layer has been proposed with granular fill/sand on ground improvement layer to receive 500mm select earth-grade. 24. The total cost of road improvement component is about 2411 Million INR.

1.4.3. Infrastructure Requirements Water Demand and Source 25. The demand would increase gradually through the phases and peak at about 17 MLD in 2031, for all the three sections put together. The water supply infrastructure would have to grow in phases as determined by the growth in demand. But, if 30% of daily demand is met through recycling, then the freshwater demand can come down to 11.9 MLD from 17 MLD. The reliable sources for the area have already been identified as Mahi Dam and Narmada River. The water supply for the Corridor, being rather small in comparison to that of Indore or proposed Investment ` 12

Region, cannot be regarded in isolation of these larger entities to which corridor is attached. The total cost of water supply infrastructure is about 684 million INR.

Waste Water Treatment 26. Total estimated demand for waste water treatment is about 14 MLD. It is proposed to install modular decentralized STPs catering to Section I and II where the generation of wastewater is mainly from residential, commercial and institutional sectors. For Section III, STPs are provided for non-industrial uses whereas the industrial units would install their own ETPs if so warranted. Total cost of waste water treatment infrastructure is about 234 million INR.

Solid Waste Management 27. The cumulative total for which arrangements have to be made is 156 tons/day. Of this: • Organic waste amounts to 45% or 70 TPD • Inert material amounts to 45% or 70 TPD • Recyclable material amounts to 10% or 15 TPD 28. A site of 3 ha would be provided for organic waste composting purposes. The industrial waste, where recyclable, would be so disposed. Hazardous materials would be handled by specialist agencies at common site with Pithampur Industrial Area. Inert wastes, where recyclable would be so disposed and balance would be buried in scientifically prepared landfill site of 2 ha area. The total cost estimate for the solid waste management infrastructure is about 200 Million INR

Power Demand Estimation and Source Identification 29. The power demand for the proposed Economic Corridor has been assessed for all the clusters put together as approx. 250 MVA. The norms have been adopted on the basis of discussions carried out with the State Electricity Board officials and current scenario of power demands of the existing consumers of respective categories at Indore and Bhopal.After evaluating the present set-up, the entire network needs to be designed and developed. Total cost of the trunk infrastructure for power distribution is about 980 million INR.

1.5. PROJECT COST AND FINANCIAL VIABILITY ASSESSMENT

1.5.1. Project Costing 30. At this stage, costing has been carried out for the total land area under the development, including the government land. The costing is based on the latest recorded land values available with the Indore and Dhar Revenue Departments, Govt. of Madhya Pradesh. 31. The idea behind separating infrastructure costs for various components is to strategize their viability based on the priority of each component for the success of the project. Cost incurred in ensuring the environmental components like wastewater recycling, green areas, ground water recharge and vegetation etc. are also included in the infrastructure costing for the project. Overall project cost of the Economic Corridor is Rs. 1,12,142 Million INR. The common infrastructure cost is about 5772 Million INR and remaining cost is incurred on development of various clusters located within the 300m belt on either side of the corridor. Table 7: Cost Summary of the Economic Corridor Cost in Million INR Phase I Phase II Phase III Phase IV(2026- Components Total (2011-2016) (2016-2021) (2021-2026) 2031) Cluster Level Costs Land Acquisition 1921 1921 Land Development 105 327 124 68 624 Built-Up Area 17004 49480 22175 11601 100259 Internal Roads 430 1109 430 279 2248 Cluster Level Green 97 710 255 63 1124 Plot-Level Access Road and Parking 14 61 34 18 126 Plot-Level Horticulture 8 26 16 10 60

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Cost in Million INR Phase I Phase II Phase III Phase IV(2026- Components Total (2011-2016) (2016-2021) (2021-2026) 2031) Sub-Total 19577 51713 23034 12039 106363 Corridor Level Cost Land Cost 343 343 Infrastructure Costs 4370 747 5116 Environmental Enhancement Costs 154 51 115 320 Sub-Total 4713 901 51 115 5779 TOTAL 24290 52614 23085 12153 112142 Table 8 : Cost Summary of the Physical Infrastructure Cost in Million INR Phase I Phase II Phase III Phase IV(2026- Infrastructure Component Total (2011-2016) (2016-2021) (2021-2026) 2031) Road Infrastructure Economic Corridor 2372.8 2372.8 Secondary Road Network 360.0 360.0 Water Supply 646 39 684.3 Sewerage System 473 261 734.0 Power Infrastructure 633 347 980.0 Solid Waste Management 100 100 200.0 City Green Development 0 216 72 161 448.4 Total 4584.4 962.7 71.8 160.6 5779.5

1.5.2. Phasing Strategies 32. Phasing of the development of Economic Corridor is dependent on number of external factors like Airport Expansion, Completion of Super Corridor, BRT expansion to the Airport, Green-field Township and Development of Transport Infrastructure of the Investment Region. Besides these, Internal factors like development of road infrastructure of the Corridor and procurement of land for cluster development are two predominant internal factors determining the phasing of the Economic Corridor. Based on above aspects, Phasing of Economic Corridor is presented in Table 9. Table 9: Phasing Plan of Economic Corridor Phase Major Activities Phase-I (2011-16) Infrastructure • Step 1: Land Consolidation and Utility Shifting Development • Step 2: Road Work Execution of Economic Corridor, Laying of Transmission Main from Pithampur to Economic Corridor, Initiation of Civil Works related to Waste Water Infrastructure, Laying of Power Transmission line from Mother Station, Identification and Development of Land Fill site and Land Consolidation for City Greens. • Step 3: Secondary Road Network Implementation • Step 4: Laying of trunk infrastructure in Section I and III of the Economic Corridor • Step 5: Establishment of 220 KV s/s Land Development • Step 1: Land Consolidation of Nine Clusters • Step 2: Initiation of nodal(commercial) development at major intersections of NH-59, Airport and Rau-Pithampur Road • Step 3: IT/ITeS Cluster, Tourism Cluster, Mixed Cluster(V) and Industrial Cluster development Phase-II (2016-21) Infrastructure • Step 1: Water Supply and Waste water trunk infrastructure in Section II of the Economic Corridor Development • Step 2: Power Infrastructure – Additional 220 KV s/s and 33 KV s/s for Section II • Step 3: Initiation of development of City Greens • Step 4: BRT Operations along Economic Corridor Land Development • Step 1: Initiation of land development of Clusters located in Section II of the Economic Corridor (Cluster VI and VII) • Step 2: Initiation of Cluster 1 (terminal) and Cluster 3 (Recreational) in Section I of the Economic Corridor • Step 3: Consolidation of IT/IteS Cluster • Step 4: Completion of Tourism Cluster and Industrial Clusters. Phase III (2021-26) Infrastructure • Step 1: O&M Development Land Development • Step 1: Completion of IT/ITeS Cluster(II) and Recreational Cluster (III) • Step 2: Consolidation of Mixed Use Clusters(V,VI and VII) along Section II of the Economic Corridor Phase IV (2026-31) Infrastructure • Step 1: O&M Development Land Development • Step 1: In-fill Development of Mix Use Clusters(V,VI and VII) along Section II of the Economic Corridor

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1.5.3. Financial Viability 33. Financial analysis of Economic Corridor has been undertaken to understand the extent of commercial attractiveness and viability of the project. The analysis has been conducted for each of the nine clusters proposed in the plan, as well as for the Economic Corridor as a whole. 34. In order to assess the revenue streams following parameters have been incorporated: • Proposed land use and development of proposed Activity Mix along the corridor; • Tariff Rates: Prevailing property rent and sale rates in and around the project influence area; • Nature of revenue – Sale1 or rent; • Phasing of revenue realization; • Maintenance Charges 35. The proposed land use along the economic corridor has been divided into two categories, revenue generating and non-revenue generating. Thereafter, within each of the clusters, the revenue generating land-uses have been classified for revenue estimation as: • Residential • Commercial • Recreational • Institutional • Industrial Table 10: Cost of Project and Means of Finance – Totaled over four phases (21 years)

Item/Parameter

IT & Ites Tourism Terminal Mixed Use Mixed Use Mixed Use Recreational City Infra Industrial/ R&D Industrial/ Convention Total Cluster Level Overall Corridor levelOverall Cluster Number -Æ> 1 2 3 4 5 6 7 8 9 Cost of Project- Land acquisition cost (2009-10 prices) 64 365 235 105 264 229 201 219 238 1,921 343 2,264 Cost of Construction (2009-10 prices) 10,405 42,158 3,374 6,643 11,639 21,738 6,712 4,054 8,164 1,14,886 5,980 1,20,866 IDC (current prices) 301 738 73 36 502 117 158 313 84 2,321 524 2,844 Total Costs 10,770 43,260 3,681 6,784 12,405 22,085 7,071 4,586 8,486 1,19,128 6,847 1,25,975 Mean of Finance Equity 3,486 13,750 1,320 2,134 4,258 6,868 2,372 1,748 2,771 38,707 2,661 41,368 Subsidy/Grant 0 0 0 0 0 0 0 0 0 0 0 0 Loans 7,283 29,510 2,361 4,650 8,147 15,217 4,698 2,838 5,715 80,420 4,186 84,606 Total Means 10,770 43,260 3,681 6,784 12,405 22,085 7,071 4,586 8,486 1,19,128 6,847 1,25,975

36. Financial results are derived on the parameters like Project IRR, Equity IRR, Equity NPV, Payback Period and Profitability ratio as given in

1 Sale can be considered as the long term lease, for say 99 years also, which is paid upfront. ` 15

Table 11 or the base case analysis.

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Table 11: Results of the Financial Analysis- Base case

Parameter

Number R&D Tourism Terminal Unit Industrial/ Industrial/ IT & ITEs Mixed Use Mixed Use Mixed Use Mixed Use of Year Convention Recreational Recreational Corridor Economic Clusters >> 1 2 3 4 5 6 7 8 9

Project Returns FIRR 21 yrs % 2.50% 12.70% 17.30% 45.80% 31.80% 37.50% 45.70% 36.80% 17.00% 16.30% 21 yrs % 9.30% 13.90% 15.20% 18.90% 20.60% 39.30% 21.00% 20.80% 15.30% 15.50% 16 yrs % 3.70% 10.50% 11.30% 19.70% 21.70% 42.90% 23.30% 22.00% 13.50% 13.60% Modified FIRR 11 yrs % NPR 3.30% -6.10% 21.90% 22.10% 56.20% 26.50% 23.80% 7.10% 8.70%

NPV ( at disc.Rate of .. ).. 13.07% Rs.Mn -2088 -291 367 1732 5290 3004 3351 4006 302 5957 Project Payback Years ( for only first spell of investments in CL. 4,6 & 9 ) Yrs 20 14 14 9 7 11 9 7 4 11 Profitability Ratio 0.88 1 1.06 1.16 1.26 1.06 1.24 1.68 1.02 1.03

Equity Returns Corridor Economic Unitt Tourism Terminal Industrial/ Industrial/ IT & ITEs Mixed Use Mixed Use Mixed Use Mixed Use Number Convention Recreational Recreational Clusters >> of Year R&D Industrial/ FIRR 21 yrs % NPR 22.3% 22.0% 87.6% 64.2% 49.9% 51.5% 69.9% 94.4% 31.4%

Modified FIRR 21 yrs % 10.1% 22.1% 22.0% 26.7% 29.8% 26.3% 30.0% 31.5% 24.8% 25.0% 16 yrs % NPR 21.6% 18.0% 28.2% 32.5% 29.3% 33.6% 24.5% 24.5% 24.2% 11 yrs % NPR 22.2% 9.7% 41.6% 36.6% 38.6% 38.9% 33.5% 33.5% 25.0% NPV (at discount rate of . Rs.M %) 22% n -1,086 35 -1 955 2,485 1,192 1,347 1,969 313 4,469 Equity Payback years ( for only first spell of investment in CL.. 6 & 9) ) Yrs 22 10 11 9 5 9 9 5 4 10 Profitability Ratio 0.80 1.00 1.00 1.29 1.39 1.08 1.30 1.99 1.08 1.07

37. It is observed that in some of the clusters the MFIRRs at the end of second phase i.e. 11th year are better than those at the end of third and fourth phases. This happens especially in those clusters where the revenues from sale of Developed land / properties are substantial. 38. Payback periods for some of the clusters are calculated for the initial spell of investments only. This is because these clusters have non-conventional flows. 39. The above results indicate the overall Project level financial viability. Only ‘Terminal’ cluster has a lower financial attractiveness because it does not have much of commercial development of land. IT&ITES has a moderate project level FIRR but generates good return for equity investors. The other clusters are attractive for the private sector. 40. Sensitivity analysis has been further carried out for the Project with factors of cost overruns, non-realization of expected revenues and change in O&M costs and following points are highlighted by the sensitivity analysis. • It is observed that revenue generation and cost of project are almost equally sensitive. O&M variation does not have substantial impact.

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• A very important observation that emerges out of the scenario analysis is that even for the most pessimistic combination of variables the return for the equity investors is not reduced very substantially. • The expected rate of return by Equity Investors i.e. 22% is very close to the Modified FIRRs generated by cluster no 2 and 3. A slight increase in the required rates will turn the Net Present Value of these clusters into negative values.

1.6. PROJECT IMPLEMENTATION FRAMEWORK

1.6.1. Options for Institutional Arrangement 41. The Economic Corridor involves a total development area of 1385 ha, which primarily falls in three main jurisdictions- Indore Planning Area, Mhow Tehsil and Dhar Tehsil. The potential options for institutional arrangement for implementing the project have been briefly illustrated here. Option 1: Creation of a new public corporation In order to achieve a holistic development approach, it is important that the Govt. of Madhya Pradesh initiates the formation of a dynamic new corporation, under the Companies Act, 1956. Examples can be drawn from corporations that have been created under a similar process, like CIDCO (City and Industrial Development Corporation) which is primarily targeted towards development and implementation of Navi Mumbai)

Option 2: Extension of jurisdiction of AKVN Indore or other existing corporation in the state The jurisdiction/ mandate of AKVN Indore or any other suitable existing state owned corporation can be extended for the development of the Economic Corridor as well. This option can work similar to above option other than having some drawbacks in availability of qualified human resource and in implementing primarily an urban development project. The AKVN Indore has also been created under the Companies Act, 1956.

Option 3: New Development authority model A new development authority can be created which has a special mandate to plan and develop land. This proposed authority would be a govt. body, so the control of the project still remains with the Govt. of M.P. This can be a single window agency which can not only plan and develop infrastructure but also give necessary approvals to industries and projects to promote quality private investments. For example, Greater Noida Industrial Development Authority (GNIDA) also acts as development agency which is responsible for planning, regulating and development of land.

Option 4: Extension of jurisdiction of Indore Development Authority (IDA): In this option, jurisdiction of IDA can be extended for incorporating development of the Economic Corridor. The jurisdiction of IDA would be required to be extended to include Economic Corridor into Indore Planning Area. It would require creation of new specialized cell with requisite human and other resources to plan and implement the project within the IDA.

1.6.2. Land Procurement 42. With respect to main project components proposed for Economic Corridor the land requirements are as follows. This information is useful in order to make strategic decisions for land acquisition/procurement. Table 12 : Main Project Components and Land Area Requirement for Economic Corridor S. No. Project Components Govt. Owned Land Privately Owned Land Total Land Area 1 Road Link 60 m RoW 31.5 Ha 71.4 Ha 102.9 Ha 2 Proposed Green Areas 9.9 Ha 54.2 Ha 64.1 Ha 3 Developed Land 31.2 Ha 189.7 Ha 221.0 4 Developable Land 71.1 Ha 926.1 Ha 997.2 Ha 5 Total Land of EC 143.8 Ha 1241.3 Ha 1385 Ha Method 1: 43. Under this method land procurement can be carried out with respect to project components either by private developer/s or by the government agency/ies or by combinations of the two. Under this method land acquisition/ procurement options are recommended based on the main project components/products.

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44. This method may be desirable as it is not necessary to acquire all the land connected with project at one given time. Land can be acquired by govt. and private agencies for various project components as per the project requirements and market needs. 45. Under this method if land connected with the main road link of 60 m RoW and other trunk services can be acquired and/ or consolidated by govt. agencies it can provide major advantage towards successful implementation of project.

Method 2: 46. This method proposes to carryout comprehensive land procurement for the project area as a whole. In other words, all the undeveloped and privately owned in Economic Corridor is to be consolidated and developed through PPP. The potential options for consolidating total land for the corridor are as follows. 47. Acquiring land through Compulsory Land Acquisition Act, 1894, is not considered as a suitable idea, because, apart from laying heavy pressure on the government finance it can also lead to delays in consolidation of the land as the process itself is very time consuming and there are possibilities that it can go through litigations. Hence it is not a desirable method for acquiring land for project area as a whole and may not be carried out. 48. Consolidating land through similar methods as land pooling or similar to that of Super Corridor in Indore may be highly desirable as it is likely to benefit all involved parties viz. land owners, government, and private developers/ investors. 49. Land consolidation through licensing private investors/ developers may be possible through negotiated land purchase deals for the project as a whole but there can be problems from individual owners who may not want to sell their land under such an arrangement. This can lead to delays and ineffectiveness of implementing the project as a whole.

1.6.3. PPP Option 50. Considering the nature of the project, which is largely real estate oriented, it is suggested that project is implemented on PPP format with recourse to the Government funding limited to land consolidation and development costs of corridor / city level infrastructure. PPP Model 1 - Land Consolidation and entire development / financing by the Private Sector Developer In this option, private sector may be invited to design and develop the project from the initial stages. Other than the usual risks associated with PPP projects, Developer will be asked to take the land acquisition risks. However such projects have largely failed to take off from the grounds. Hence this PPP model is not being deliberated further. PPP Model 2- Multiple-Developer Approach with Government financing LA and City Infrastructure It is suggested that project implementation is unbundled in two components: • Component 1 – Land acquisition and development of City Infrastructure i.e. Road, power and water. • Component 2 - Development and Establishment of economic Clusters with private sector participation with multiple developers PPP Model 3 -Single Developer Model Under this alternative, after consolidation of the land and completing common infrastructure provision as needed for initial phase, Government will assign the complete development rights to a single developer for the entire project. It is unlikely that market will respond well to this approach, because demand is building up gradually and developer will be required to do the project in prolonged phases. Single consortium / Developer will not be able to take risks associated with the entire project. 51. PPP model 2 i.e. Multiple developer implementation strategy appears to be better suited for the project and hence is recommended as preferred implementation option. The reasons preferring this option are as follows: • Government can phase out the land consolidation costs and seek private sector participation for clusters as per the land consolidation. • Off-site infrastructure is developed as demand builds up and demand risk is mitigated by phased implementation. • Government can consolidate the land by joining hands with the private land owners. Developed land can be provided to the private land owners in lieu of land taken for the project. This also is recommended as phased activity. • The non-viable clusters can be clubbed with the viable clusters and bid out together.

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52. Following activities need to be taken up by the Government before bidding out the project: • Land consolidation and land disposal strategy needs to be evolved for the project. • Bidding strategy clubbed with contractual documentation is also needed to ensure a successful PPP project. • Marketing of the project enhancing the visibility and evoking good response from the real estate developers.

1.7. WAY FORWARD 53. In order to move forward for implementation of the project, following key steps are being recommended. Step 1: Reserve the land designated for development of Economic Corridor: it is essential and important that to avoid any speculation, land designated for development of economic corridor as per the Comprehensive Development plan is reserved for the project. Step 2: Institutional Framework: Initiate the process of creating or identifying an agency which will carry forward the project and implement it in its spirit and content through PPP. Step 3: Land Procurement and Consolidation: It is recommended that Government of Madhya Pradesh through its implementation vehicle/agency for the project use one of the land procurement or consolidation mechanisms to start the process for implementation of infrastructure sub-projects. Step 4: Development of Main and Support Infrastructure: Improvement of existing road of Economic Corridor followed by development of Green-field part of the road alignment. Parallel to road development, infrastructure for water supply, power and waste water management needs to be developed in a phased manner and as recommended. Step 5: Economic Corridor as a Regional Connectivity Corridor: It is important to state here that besides pursuing the idea of integrating the Economic Corridor with the on-going project on Super Corridor in Indore, it is important to link Economic Corridor with that of NH-3 Bypass as it will increase chances of its success. This primarily means a road link needs to be extended from Rau-Pithampur Road to NH-3 in reference to alignment of Economic Corridor. Step 6: Potential Synergy between Economic Corridor and Greenfield Integrated Township: It is recommended in the Concept Master Plan Report for the Pithampr-Dhar-Mhow Investment Region that location of the Greenfield City be taken up between Betma Hills and Indore Urban Area. This will initiate an opportunity to truly integrate Economic Corridor with the Investment Region; hence propensity of growth resulting out of Economic Corridor can be naturally extended into the development process of the Investment Region. Step 7: Promotion of Economic Corridor through PPP: The financial assessment carried out for the project suggests that project is very viable and most of its parts/sections are private sector investment friendly. It is recommended that implementation of pivotal clusters proposed along the Economic Corridor can be initialized while common infrastructure is being implemented. The agency identified for the implementation of the project takes a view of project feasibility to stream- line the implementation process through PPP. Step 8: Operation and Maintenance: It is highly desirable that agency/agencies are identified to carryout O&M of the proposed common infrastructure for the project. It is desirable and recommended that implementing agency an O&M agency is same. 54. As a whole success of the project is linked to having a single window implementing vehicle/agency, land consolidation, implementation of common infrastructure followed by an efficient public transport link between Pithampur Industrial Area and Indore through Economic Corridor.

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