Dfc ppt

MEGA DC IN THE
PERSPECTIVE OF
DELHI-MUMBAI
INDUSTRIAL
CORRIDOR (DMIC)
Presented By
-Shubham Shukla
-Priyank Dubey

CONTENT
Comparison between India and World in Logistics
Western dedicated freight corridor
Benefits of a dedicated freight corridor
Delhi- Mumbai Industrial Corridor (DMIC)
Mega Distribution Centre(DC)
Land Banking

Average Surface Freight Cost among countries
COMPARISON BETWEEN INDIA AND WORLD IN
LOGISTICS

Share of different modes in Freight Transport across Counties

Break-up of Bulk Freight Traffic in India as per distance travelled

WHERE IS WESTERN DEDICATED FREIGHT CORRIDOR?
WESTERN DEDICATED FREIGHT CORRIDOR
Route:
Dadri - Rewari – Narnaul – Ringas –
Phulera - Marwar – Sabarmati –
Vadodara – Vasai Road – JNPT
The Western Dedicated Freight Corridor or Western DFC is a broad gauge 1483 km freight
corridor under construction in India by Indian railways. It will connect India's capital, Delhi, and Mum
bai.
Western DFC
States Kms
Haryana 177
Rajasthan 567
Gujarat 565
Maharashtra 177
Uttar Pradesh 18
Total 1504

97% completed
Under construction
Western DFC
Section Distance Route Status
Dadri – Rewari 141 Dadri-Rewari
Rewari - Iqbalgarh (near
Palanpur)
626
Rewari-Phulera (near Jaipur)-
Ajmer-Marwar-Iqbalgarh
Under construction
Iqbalgarh (near Palanpur) –
Vadodara
306
Iqbalgarh-Palanpur-Mehsana-
Amli Road (near
Ahmadabad)-Vadodara
Under construction
Vadodara - Sachin (near
Surat)
164 Vadodara- Sachin
Under construction
Sachin (near Surat) -
Jawaharlal Nehru Port
266
Road-Sachin-Valsad-Vasai J
awaharlal Nehru Port
Total 1504

BENEFITS OF DEDICATED FREIGHT CORRIDOR
Would likely to make Indian freight transport cheapest in the world due to transportation by
permitting higher volumes of relatively light weight and high value cargo in each rake.
Facilitate economy of scale as they run on a broad gauge with double stack using electric locomotives
These are well suited for moving voluminous and high value cargo such as cars, automobiles parts,
electronics, electrical components, ready made garments.
It is proposed to set up Logistics Parks at Mumbai area, in Navi Mumbai, Vapi and Ahmedabad area ,
Gandhidham and Kutch region of Gujarat, Jaipur area in Rajasthan, NCR of Delhi. As these locations
have a good concentration of diverse industries and constitute major production/consumption centres.
These are also well connected by rail and road systems for convenient movement in different
directions.
High development rate as these parks are proposed to be developed on Public Private Partnership
mode.

COMPARISON BETWEEN EXISTING AND NEW SYSTEM

TRAFFIC PROJECTIONS ON WESTERN DFC
(IN MILLION TONS/YEAR)

DELHI – MUMBAI INDUSTRIAL CORRIDOR

Project Objective
Industrial Infrastructure
Developing new industrial clusters.
Developing modern integrated agro processing zone with allied infrastructures.
Development of IT hub and other allied infrastructure.
Providing efficient logistics chain and multi modal logistic hub.
Physical Infrastructures
Development of knowledge hub with integrated approach.
Feeder road / rail connectivity to ports , hinterlands and markets.
Development of existing port infrastructure and green field ports.
Upgradation and modernization of airports.
Setting up power generation plant and transmission facilities.
Ensuring effective environment protection mechanism .
Development of integrated township.

Integrated Corridor Development
The development strategy for the DMIC is based on the competitiveness of
each of the DMIC states.
Holistic approach adopted to identify High Impact/Market Driven Nodes
along the DMIC.
Each Node will be self-sustained regions with world class infrastructure and
enhanced connectivity to DFC, Ports, and Hinterlands.
Market Driven Nodes are proposed to be in two categories.
Investment Region - Approx. 200 sq km Area (Minimum)
Industrial areas - Approx. 100 sq km Area (Minimum)

INTEGRATED CORRIDOR DEVELOPMENT
To take advantage of inherent strengths of specific location like..
 Resources
 Agriculture
 Industrial development
 Skilled man-power
To spread the benefits of the corridor the project will also seek to link
Under-developed regions along the Corridor to Well Developed Regions
Criteria for Selection of Investment Region
Each DMIC State to have at least one node to spread economic
Benefit Proximity to major urban agglomerations.
Potential for Developing Greenfield Ports (or) Augmentation
Availability of land parcels and established industrial base.
Criteria for Selection of Industrial Area

DMIC INFLUENCE REGION IN RAJASTHAN
Jaipur , Alwar , Jodhpur , Kota , Bhilwara industrial belt
Kushkhera – Bhiwadi – Neemrana investment region
Ajmer – Kishangarh investment region
Jaipur – Dausa industrial area
Pali- marwar industrial area
Rajsamand – Bhilwara industrial area

Almost 66% of area of the state comes into DMIC influence zone
•Manesar –Bawal investment region
•Gurgaon- Sonipat - Kundli- Faridabad investment region
•Rewari – Hisar industrial area
•Faridabad – Palwal industrial area
DMIC INFLUENCE REGION IN HARYANA

LIST OF LARGE & MEDIUM INDUSTRIES OF
GURGAON
1. ASK Automotive (Italy) Gurgaon (Brake Shoes)
2. Aksh Optic Fibre Limited (Manesar)
3. Amtek (UK, Japan) Delhi , Manesar (Connecting Rods)
4. Ample Auto, Gurgaon
5. Anand Motors Products (USA) Delhi And Gurgaon (Compones)
6. Anand Nishikawa (Japan) Delhi, Gurgaon Udyog Vihar Phase 1 (Rubber Parts)
7. Arvin Industries Gurgaon (Filter)
8. Bharat Seats (Japan) Haryana (Seats)
9. BMW (Gurgaon, Only HQ)
10. Bosch Chassis Manesar
11. Bosch (Germany) Gurgaon (Pumps)
12. Caparo Maruti (UK) Gurgaon (Sheet Metal)
13. Climax Overseas Manesar
14. Continental, Gurgaon

GURGAON
15. D.I. Filter Systems (USA, Donaldson Company) Gurgaon (Air Filters)
16. Deadong Gurgaon (Cables)
17. Delphi Automotives (USA) Gurgaon (Steering Systems, Wiring Harness)
18. Donaldson Company Gurgaon (Air Filters)
19. Echlin India (USA) Haryana (Brakes)
20. Eicher Faridabad
21. FCC Rico (Japan) Gurgaon (Clutch Assembly)
22. Ferodo (UK) Gurgaon (Brakes)
23. Gabriel India Ltd. Gurgaon
24. Henkel Teroson (Germany) Gurgaon (Anti-freezing Coolant)

GURGAON
25. Highway Cycles Industries (Japan, Honda) Gurgaon (piston for engines)
26. Hilton Roulunds (Denmark) Haryana (automotive belts)
27. Haryana Sheet Glass LTD (UK, Pilikington) Haryana (automotive glass)
28. Haryana DD Autos (Germany) Haryana (shafts)
29. Haryana Deepey Autos (UK, Woodhead) Gurgaon (shock absorbers)
30. Jay Bharat Maruti (Japan) Gurgaon (pipes)
31. JBM Sung Hoo (South Korea) Delhi (components) JBM Group Gurgaon
32. JMA Industries (Germany, Hella) Faridabad (lamps)
33. Jay-Yusin (Japan) Gurgaon (door latch)
34. Jay Industries (South Korea, Boramtek) Delhi (components)
35. Johnson Matthey (UK) Gurgaon (catalysts)
36. Johnson Matthey Manesar
37. JNS Instruments (Japan) Gurgaon (instruments)
38. Krishna Maruti (Japan) Gurgaon (seats)

GURGAON
39.Krishna Toyo (Japan) Gurgaon (rear mirrors)
40.Lumax GSHP (USA) Gurgaon (transmission)
41.Laser Lamp (South Korea, Il Lee corp.) Delhi/Haryana (halogene lamps)
42.Machino Polymers (Montell int.) Gurgaon (compound cables)
43. Machino TSK Nippon Cables (Japan) Gurgaon (cables)
44.Machino Basell (Netherlands) Gurgaon (polypropylene)
45.Madhusudan Nippon (Japan, Korea, Deadong) Gurgaon (cables)
46.Manu Auto, Manesar
47.Mark Auto Industries (Italy, Germany, FBN Italy, Roth
Abgastechnologie) Gurgaon (exhust systems)
48.Metro Tyers Gurgaon
49.Mindarika (Japan) Gurgaon (switches)
50.M and M Auto Industries Gurgaon (springs)

GURGAON
51. Montell int. Gurgaon (compound cables)
52. Munjal Showa (Japan) Gurgaon (shock absorbers)
53. Nagata (Japan) Gurgaon (tools, dies)
54. Napino Auto and Electronics Manesar
55. Nelson Industries (USA) Delhi (engine parts)
56. Nikko Auto (Japan) Gurgaon (horns)
57. Nippon Paint Gurgaon (paint)
58. Pilikington (UK) Gurgaon
59. Purolator (USA, Arvin Industries) Gurgaon (filter)
60. Quiton Hazell Gurgaon (rods, joints, steering assembly)
61. Rasandik Engineering (Japan, Yachiyo) Gurgaon (fuel tanks)
62. Roloform Manesar
63. Roth Abgastechnologie Gurgaon (exhaust systems)
64. Sandhar Gurgaon

GURGAON
65. Sauer Danfoss, Gurgaon
66. Siemens Intron Gurgaon
67. Sono Koyo (Japan) Gurgaon (steering)
68. Sona Okegawa (Japan) Gurgaon (gears)
69. Sona Somic Lemforder (Japan/Germany) Gurgaon (ball point)
70. Sunbeam Auto (Japan, Honda) Gurgaon (pistons)
71. Sun Steering Wheels (Japan, TS Tech) Gurgaon (steering wheels)
72. Sun Petri (Germany) Gurgaon (steering wheels)
73. Suzuki (Japan) Motor-Bikes
74. Talbros (UK, Quiton Hazell) Gurgaon (rods, joints, steering assembly)
75. Woodhead Gurgaon (shock absorbers)
76. WSCP Manesar

DMIC INFLUENCE REGION IN U.P.
Dadari – Ghaziabad - Noida / Greater Noida investment region.
Meerut – Muzaffarpur Industrial area.
Known for general manufacturing

DADRI – GHAZIABAD - NOIDA / GREATER NOID
A INVESTMENT REGION (DGIN)
Ghaziabad, the hub of light engineering and electronics industries; and Greater
Noida, the city with well developed road network, state of the art physical and
social infrastructure with quality residential commercial, recreational and
institutional areas. Moreover, a 3500MW power plant is being developed close to
Dadri through private sector participation.
Proposed Components:
. Export-oriented Industrial Units/ SEZ: North Western Uttar Pradesh i.e. the
Dadri-Noida-Ghaziabad belt is proficient at manufacture of engineering,
electronics, and leather and textile goods. A large industrial park would give a
boost to the production and export of these items.
 Agro/Food Processing Zone: Considering the large agricultural output from the
Western Uttar Pradesh, an integrated agro/food processing zone is proposed in this
region.

DADRI – GHAZIABAD - NOIDA / GREATER NOID
A INVESTMENT REGION (DGIN)
Proposed Components:
Augmentation of Existing Industrial Estates: With a focus on expansion of ind
ustrial activities, creation of supporting infrastructure and facilitate further invest
ments in the sector to develop a mega industrial zone. It is proposed to augment
two industrial estates in Ghaziabad

MEDIUM SCALE ENTERPRISES IN NOIDA
S. No. Company Product
1. Asian Paints Ltd. Paints
2. Delphi Automotive Systems
3. Denso India Ltd. Auto Parts
4. Devyani Beverages Ltd. Soft Drinks
5. Escorts Yamaha Ltd. Motor Cycle
6. Hind Polymers Ltd. Plastic Granules
7. Hindustan Adhesive Ltd. Adhesive Tapes
8. Honda Power Products Power Products
9. Honda Siel Cars India Ltd. Passenger Cars
10. Hotline Appliances Electronic Goods
11. HPCL Ltd. LPG Bottling Plant
12. Jay Containers Ship Containers
13. J.K. Magnetics Ltd. Audio/Video Tapes
14. Korin India Ltd. Motor Parts
15. L.G. Electronics Electronic Goods
16. Majestic Auto Two Wheelers
17. New Holland Tractors Tractors
18. Nicco Batteries Ltd. Auto Batteries
19. Punjab Fibres Ltd. Cotton Yarn
20. Pushpsons Fibrol Ltd. Industrial Oil
21. Pushpsons Industries Ltd. Cotton Fabrics
22. Reinz Talbros Ltd. Auto Parts
23. Sakura Seimitsu Ltd. Clocks & Watches

24. Samtel Color Ltd. Color Picture Tubes
25. Vectra Ltd. Truck Manufacturer
26. Hindustan Times Printing Press
27. Priya Foods Biscuits
28. G S C Toughend Glass Toughend Glass
29. T-series Audio & Video Cassettes
30. Sheela Foams Mattresses
31. Videocon Electronic Goods
32. Hongo India Automotive Components
33. Moser Baer Data Storage Devices
LARGE SCALE ENTERPRISES IN NOIDA
1. HCL Group Computers / Software
2. Panasonic Electronics
3. Amit Agro (Uncle Chips) Food Product
4. Fedders Lloyd Air Condition
5. HCL - HP Computers / Pereripheral
6. Flex Industries Packaging Equipment / Material
7. Indo Copp Industrial Equipment
8. BPL Sanyo Household Electronic Products
9. Samsung Electronics

1. HCL Group Computers / Software
2. Panasonic Electronics
3. Amit Agro (Uncle Chips) Food Product
4. Fedders Lloyd Air Conditioner
5. HCL - HP Computers / Pereripheral
6. Flex Industries Packaging Equipment / Material
7. Indo Copp Industrial Equipment
8. BPL Sanyo Household Electronic Products
9. Samsung Electronics

10. Phoenix Lamps Lamps
11. SGS Thompson Electrical Equipment
12. Tata Unisys Electrical Equipment
13. TCS Software Software
14. Eveready Torch
15. Haldiram Namkeen & Sweets
16. D.S.Group Pan Masala,Spices
17. National Fertilizer Ltd, Furtilizers
18. Food Corpotion of India Storage of Food Grains
19 HUDCO, , Construction
20. BHEL Electricity Gen.
21. PDIL, Petrochemicals
22. IOC Oil Products
23. NTPC Electricity Gen.
24. BSNL Telecommunication
25. MTNL Telecommunication

MICRO &MEDIUM SIZE INDUSTRIES IN
GHAZIABAD
NIC CODE
NO
TYPE OF INDUSTRY NO. OF UNITS INVESTMENT IN
LAKH RS.
EMPLOYMENT
20 Agro based 24 100.90 176
22 Soda water 02 500.00 100
23 Cotton textile 13 407.00 96
24. Woolen & silk based textile 03 110.00 1462
25. Jute & jute based -- -- --
26 Ready made garments 85 -- --
27. Wood/wooden based furniture 23 58.70 218
28. Paper & Paper products 26 141.10 171
29. Leather based -- -- --
31. Chemical/Chemical based -- -- --
30. Rubber, Plastic & petro based 21 50.30 155
32. Mineral based 38 153.50 505
33. Metal based (Steel Fab.) 19 46.90 139
35. Engineering units 22 55.30 135
36. Electrical machinery 123 637.40 1517
97. Repairing & servicing 45 105.10 781
01. Others 437 1339.70 1872

LARGE SIZE INDUSTRIES IN GHAZIABAD
Sl. No
.
Name and address of the unit Product manufactured Investment
(crores)
Employment
1. M/s Alps Industries Limited 57/2, Sit
e IV, Industrial area, Sahibabad, Gha
ziabad
Yarn, Fabrics, Home Furnishing, A
utomotive Fabrics, Fashion Access
ories & Vista
Home Furnishing
45 50
2. M/S Albert David Ltd.,
B-12,13 Meerut Road Industrial Area, G
haziabad.
Pharmaceuticals 50.00 225
3. M/s Ambica Steel Ltd.,
51/2, Site 4 Sahibabad
Melting, refining &
casting-Steel Ingot
19.45 300
4. M/s Ambica Steel Ltd.,
Plot No.32, Site-2, Loni Road Industri
al Area, Mohan Nagar
Hot rolling & Bright Bars Div
ision
12.50 205
5. M/s Atlas Cycle Ltd.,
Site-4, Sahibabad
Bi-cycle 14 110
6. M/s Bhushan Steel & Stripes
Ltd., 23, Site-4, Sahibabad.
C.R. Strips & steel
ingots
818 1200
7. M/s Bhushan Steel & Strips Ltd.,( St
eel Division) 28/4 &
28/3/1 Sahibabad.
Steel billets, ingots, steel 53.11 95
8. M/s Biomade (P) Ltd.,
C-96, Bulandshahar Road Industrial
area, Ghaziabad.
Typhoid Vaccine 40.00 95

9. M/s Central Electronics Ltd.,
Site-4, Sahibabad,Ghaziabad.
Electronic items 34.95 675
10. M/s Dabur India Ltd.,
5/1-5/13 & 22, Site-4, Sahibabad
Ayurvedic Medicines, syrups &
Hair oils
51.00 150
11. M/s Elin Electronics Ltd.,
C-143, Industrial Area, Site No.1, Bu
landshahar Road. Industrial Estate, G
haziabad
Electronics parts, Tape deck mecha
nism, DC Micro motors, AC
Synchronous Motors
12.22 750
12. M/s Eureka Polygems.
D-10, Bulandshahar Road, Industrial
Area, Ghaziabad- 201001
Polyster buttons 15.00 80
13. M/s Fair Agro Export (P) Ltd.,
20/1, Site-4, Sahibabad
Mutton, Frozen Meat 27.00 70
14. M/s Figrifeeco Allana Ltd,
A-14/1, Site-4, Industrial Area, Sahibab
ad.
Animal fats & Oil, meat processing. 30.00 80
15. M/s Hindustan Coca Cola Bevareges(
P) Ltd.,, Mussoeri
Gulati Road, Ghaziabad
Water, Mineral water, soft Drink
s, Arriated
water
92 200
16. M/s Jindal Pipes (P) Ltd.,
Hapur Road, Jindalnagar, Ghaziab
ad.
Pipes 25 325
17. M/s Kashyap Organics Pvt.Ltd., C-172,
Bulland Shahar Road,
Industrial Indl. Area, Ghaziabad
Butyl Acetate 14.40 87

18. M/S M.K. Overseas (P) Ltd.,
B-63-64, Site-4, Sahibabad
Fresh chilled frozen
meat
20.
00
50
19. M/s Magnam Paper Ltd.,
18/31-18/41, Site-IV, Sahibabad
Particle Boards, M.G.
paper, writing paper & duplex boar
ds
20
0
430
20. M/s Merino Industries Ltd., Village Achheja, PO
- Hapur -245 101 Dist. Ghaziabad (U.P.)
Laminates, Furnitures, Restroom an
d locker systems, Solid Surfaces, Pa
cked food, Non-conventional
energy
53.
98
700
21. M/s Modi Industries Ltd. (Sugar
Mills),Modinagar, Ghaziabad
White Crystal Sugar 80 550
22. M/s Mother Dairy Food
Processing Ltd., Pilkhuwa, Ha
pur
Milk & Milk Products 20 200
23. M/s Pahadpur,3-P( Division of
Paharpur Cooling Towers Ltd.),19, Site-4
,Sahibabad
Flexible packaging,
printing plastic pouch
25.00 100
24. M/s Premium Polyfilms Ltd.,
40/1, Site-4 Sahibabad
PVC Film & sheet 10.45 225
25. M/s Rama Steel Tubes Ltd., B-
21, Sitre-4, Sahibabad
G.I. Steel Tubes & Pipe 11.00 100
26. M/s Rachna Metal Industries
Pvt. Ltd., 18-42-11,
Sitre-4, Sahibabad
Copper Zinc Alloy 16.00 50

27. M/s Sage Metals Ltd.,
B-8, Site-4, Sahibabad
Metal Die castings,Auto parts 17.00 150
28. M/s Samtal Electron Devices
Ltd., Meerut Road Industrial Area, Ghaziabad.
Electron-gun and
Cathode tube (PictureTu
be)
14.00 320
29. M/s Sheela Foam (P) Ltd.,
37/2, Site –4, sahibabad
Polyurethin foam, for
home & Industry
12.00 48
30. M/s Shriram Piston & Rings Ltd.,
A-4-7 Meerut Road, Industrial Area, Ghaziabad
Automobile piston &
rings
25.00 1325
31. M/s Simbhaoli Sugars,
Distilleries Division, Simbhaoli, Garh Distt.
Ghaziabad,
Ethyl Alcohol 25 150
32. M/s Simbhaoli Sugars
Brijnathpur Sugar Division Brijnathpur, Hapur,
Distt. Ghaziabad ,
Sugar 85 450
33. M/s Simbhaoli Sugars Simbhaoli
Sugar Division
Simbhaoli, Distt. Ghaziabad,
Sugar 80 700
34. M/s T.T.L. Ltd.,
Plot No. 6, site –4, Sahibabad
Electric meters, switch
gear
14 400
35. M/s Merino Industries Ltd.,
Village Achheja, PO- Hapur -245 101
Dist. Ghaziabad (U.P.)
Laminates, Furnitures,
Restroom and locker systems, Soli
d Surfaces, Packed food, Non-con
ventional energy
53.98 700

DMIC INFLUENCE REGION IN M.P.
Ratlam – nagda investment region
Pitampura – Dhar – Mhow investmen region.
Neemach – Nayagaon industrial area.
Shajapur – Dewas industrial area.

DMIC INFLUENCE REGION IN GUJARAT
Ahmedabad – Dholera investment region.
Dahej – Bharuch investment region.
Vadodara – Ankleshwar industrial area.
Surat – Navsad industrial area.
Valsad – Ambergaon industrial area.
Known for engineering , jems &jewelry , chemicals.

DMIC INFLUENCE REGION IN MAHARASHTRA
Dhule – Nardhana investment region.
Nasik – Sinnar investment region.
Alewadi / Dighi port industrial area.
Pune – khed industrial area.
Known for Automobile , Pharmaceuticals.

LOGISTICS PARK
Logistics Park offers:
 Strategic location with good road, rail and air connectivity. The wide roads of the Logistics Park
are sufficient for free flow of two way traffic all throughout the day.
Space for multiple clients and industries and for future expansion.
Ample truck and office parking space.
Highly secured area with required security arrangements.
Integrated park management taking care of general maintenance, landscaping, security & waste
management.
State-of-the art warehousing & cold storage facilities.
Emergency services (Fire fighting system & Ambulance).
 Public facilities like banking, insurance and other service facilities and office space,
accommodation, catering and other services facilities.
Connectivity with ports & Inland Container Depot (ICD).
So DMIC influence region have the huge potential to have many big logistics parks

Mega DC is attracted to locations that optimize access to multiple regional markets (and
possibly national markets) at the expense of optimizing access to any single market.
However it increase supply chain exposure to the related risks of rising and increasingly
volatile fuel prices.
So cheap freight transportation is very much needed for the success of such mega DC. And for
tunately INDIA is speedily moving ahead the direction of facilitating cheap freight
transportation .
Many global warehouse players like UNILEVER , JEAN COUTU , PEPSICO, COKE ,
WALMART etc. are effectively exploiting the benefits generated due to these mega DCs
MEGA DISTRIBUTION CENTRE

SOME MEGA DCS ACROSS THE WORLD
Unilever’s mega DC Jou Courtu’s mega DC

What is land banking and how does the business of land banking work?
Land banking is the practice of aggregating parcels or blocks of land at current market rates or lower for
future sale or development. A land aggregator aggregates land by tracking the geographical and
topological locations, which are primed for investment, based on social infrastructure and demographic
factors. Generally, the land originates to the aggregator in an unprepared format, wherein, he prepares the
title reports, property boundary, zone regulations, conversions, registration, approvals and sanctions for
the land, after which, the land is primed for sale or development. Land aggregators buy land, wait for the
land value to appreciate and then, sell the same to developers, investors and other interested parties for a
substantial profit.
LAND BANKING

LAND BANKING CONTD..
Organisations that engage in land banking:
1. Federal, state and local governments: Government agencies use land banking to
support long-term civic planning or to support future economic development.
Municipalities gain and hold ownership of land to be used for new roads, metro stat
ions, hospitals, schools, parks or for economic or residential development efforts.
2. Businesses: A city’s master plan, which outlines the infrastructure that is planned
for a region, can serve as a guide to plan the procurement of land. The aggregators
can purchase and hold undeveloped or pre-developed land parcels, which expected
to increase in market value, for long-term business gains
3. Universities and non-profit entities: Universities and non-profit entities purchase
land for future growth and/or expansion in public interest.
4. Individuals: Owning properties, including land, provides a sense of security. Indivi
duals can use land as wealth creation vehicles, either for their retirement plans, to
pay for their children’s education, or to create a family legacy

Land banking models in India :
Buying and selling model: In this model, the land aggregator will buy land from the
primary land owner and sell it to a third party.
Joint development model: This is a popular development model, adopted by most of
the land owners, wherein, the land owner and developer combine their resources and
efforts. Under the joint development model, the land owner contributes his land and
the developer assumes the responsibility of development.
Land leasing model: This model is generally adopted for a long lease of the property,
where land owners offer the land without any development. Mobilizing land through
leasing contracts is less expensive than through the buying and selling model. Here,
the land aggregator works as a middleman between land owners and the third party, to
process lease contracts, provide guarantee to the procedure and to process the
mobilization of land.

Key factors deciding the location of land banking
Land: The land should ideally be stable and usable.
Title: The land should have a clear and marketable title.
Connectivity: The land should be well-connected (present and future) by road, rail, sea
and air.
Social infrastructure: Public infrastructure related to health, education, housing,
transport and civic amenities, should be available in the vicinity.
Availability of amenities: The land should have easy access to general amenities
(present and future) such as water and electricity, among others.
Educational institutes: Existing (or upcoming) schools and universities.
Growth factors: In-line with demographic, geographic, civic and industrial growth.
In addition to the above factors, the surrounding commercial and residential
development around the property, are also major factors in land banking.

Phases of land banking
Under-developed/early phase: Any land that interests aggregators, starts out as
farmland, agricultural land or non-converted land. Land does not see any appreciable
increase in value, until it falls in line with the development path.
Pre-developed/growth phase: The value of the land starts to increase dramatically,
once the land and its surrounding areas start to develop with social infrastructure.
Developed/matured phase: Land is converted to a housing or commercial property and
thereafter, its value increases slowly.
The full potential of land banking can only be realised, if the land is purchased in
the under-developed/early phase. Land banking works on the premise of patience.
Most investors ignore land banking as an investment, due to the long term nature o
f the business.

Benefits for sellers
Above-market rates for the land: Land bankers generally buy lands at rates
above market value and offer no significant return on investment at the
moment of purchase. Hence, the seller gets an above-market rate on his or her
land.
Elimination of risk: The seller is able to eliminate the element of risk
attached to his land, in the event that it offers no significant return on
investment, due to its unsuitability for commercial and/or agricultural
purposes.

Status of land banking in India
According to the Thomson Reuters Foundation, the average size of land holdings in India
is 11,500 sq metres, with more than two-thirds of owners holding fewer than 40,000
sq metres of cultivable land. In rural India, over 56 per cent of the households own no
land. “Even as the size of holdings declined due to indebtedness and inheritance over the
decades, demand for land for Industrial development has increased, as the economy expan
ded. This has led to conflicts between farmers and states, stalling projects worth billions
of dollars,” it added.
With the implementation of demonetisation, the Real Estate (Regulation and
Development) Act (RERA) and the Goods and Services Tax (GST), many small land
bankers sold their inventories to larger players. A shortage of funds and the prolonged
slowdown in the real estate market, have forced many mid and small-sized developers to
partner with large developers, for completion of projects.

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