Govt to set up 12 new industrial cities to boost mfg; outlay Rs 28,602 cr

New Delhi: The government on Wednesday approved 12 new industrial cities in 10 states on the lines of Greater Noida in Uttar Pradesh and Dholera in Gujarat to boost domestic manufacturing with an estimated investment of Rs 28,602 crore.

These industrial areas will be in Khurpia in Uttarakhand, Rajpura-Patiala in Punjab, Dighi in Maharashtra, Palakkad in Kerala, Agra and Prayagraj in UP, Gaya in Bihar, Zaheerabad in Telangana, Orvakal and Kopparthy in AP, and Jodhpur-Pali in Rajasthan, and one in Haryana.

A decision in this regard was taken in a meeting of the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi here.

The Cabinet "has approved 12 new project proposals under the National Industrial Corridor Development Programme (NICDP) with an estimated investment of Rs 28,602 crore", Union Minister Ashwini Vaishnaw said after the meeting.

NICDP is expected to generate significant employment opportunities, with an estimated one million direct and up to three million indirect jobs being created through these planned areas.

These projects will create an investment potential of about Rs 1.52 lakh crore.

The decision followed the announcement by the government in the Budget for the development of 'plug and play' industrial parks in or near 100 cities in partnership with states and the private sector to boost manufacturing.

Eight such cities are already under different stages of implementation. Trunk infrastructure has been created in four cities -- Dholera (Gujarat), Auric (Maharashtra), Vikram Udyogpuri (Madhya Pradesh) and Krishnapatnam (Andhra Pradesh) and allotment of land plots is underway for the industry.

Similarly, in the other four -- Tumakuru in Karnataka, Krishnapatnam in Andhra Pradesh, Nangal Chaudhary in Haryana, and Dadri, Greater Noida in Uttar Pradesh, the government's special purpose vehicle (SPV) is in the process of constructing the basic infrastructure like road connectivity, water and power supply.

With eight already under the development stage and the announcement of 12 new in the Budget, the total count of these cities in the country will reach 20.

Briefing reporters on the decision, Commerce and Industry Minister Piyush Goyal said the projects are expected to complete in the next three years by 2027.

"For these areas, land has been acquired to create world class infrastructure. They will be developed as greenfield smart cities of global standards," Goyal told reporters here.

The cities, he said, will be developed as greenfield smart cities of global standards, built 'ahead of demand' on the 'plug-n-play' and 'walk-to-work' concepts.

This approach ensures that the cities are equipped with advanced infrastructure that supports sustainable and efficient industrial operations.

He said the projects will feature multi-modal connectivity infrastructure, ensuring seamless movement of people, goods, and services.

By positioning India as a strong player in the global value chains (GVC), the NICDP will provide developed land parcels ready for immediate allotment, making it easier for domestic and international investors to set up manufacturing units in India.

"Investors will get land easily in these areas. We already have taken basic environmental clearance. Anchor investors will get discounts," Goyal added.

Hailing the move, Prime Minister Narendra Modi posted on X, "The Cabinet has taken a very important decision of building 12 Industrial nodes/cities under National Industrial Corridor Development Programme. Apart from the significant infrastructure boost, it will enhance growth and create employment for many people."

The ministry said India will soon wear a "grand necklace" of industrial smart cities now.

The Rs 28,602-crore investments include land cost, which is about Rs 11,000 crore.

Goyal added that countries like Singapore and Switzerland, too, have shown interest to collaborate in these townships.

"Switzerland has showed interest and they are keen for a dedicated area for them. Similarly, Singapore has also showed interest," the minister said.

The salient features of these greenfield industrial smart cities include potable and recycled water supply, power, effluent treatment plants, multi-modal connectivity, gas pipeline, e-land management system, online application processing, telecom network and modular sizing of plots.

Over 1,000 acres will be developed in Khurpia in Uttarakhand with an investment of Rs 1,265 crore. The focus sectors for this area will be auto and engineering.

In Rajpura Patiala (Punjab), 1,099 acres will be developed with Rs 1,367 crore. The main sectors that can come up in this city include electronics, food and beverages, machinery, textiles, and pharma.

On this, Goyal said the state has assured him of full cooperation for the project.

Further, on special request of Uttar Pradesh, an industrial area at only 352 acres will be set in Prayagraj with an investment of Rs 658 crore. National Industrial Corridor Development Corporation (NICDC) normally develops these projects on land parcels of 1,000 acres and above.

Dighi Port Industrial Area in Maharashtra with 6,056 acres will be the second largest city after Dholera in Gujarat. This area will be developed with an investment of Rs 5,469 crore and the focus segments will be engineering, pharma, textiles, and chemicals.

Similarly, Zaheerabad in Telangana will be set up on 3,245 acres with an investment of Rs 2,361 crore.

In this area, the minister said Hyundai has decided to take 450 acres for the auto hub.