Centre approves 12 new industrial cities with Rs 28,602 cr investment

New Delhi: In a significant move to bolster domestic manufacturing and attract investments, the Central government on Wednesday approved the establishment of 12 new industrial cities across 10 states. The decision, taken during a meeting of the Cabinet Committee on Economic Affairs chaired by Prime Minister Narendra Modi, is expected to generate an estimated investment of Rs 28,602 crore.

Union Minister Ashwini Vaishnaw announced that these new projects fall under the National Industrial Corridor Development Programme (NICDP). The industrial areas will be developed in Khurpia (Uttarakhand), Rajpura-Patiala (Punjab), Dighi (Maharashtra), Palakkad (Kerala), Agra and Prayagraj (Uttar Pradesh), Gaya (Bihar), Zaheerabad (Telangana), Orvakal and Kopparthy (Andhra Pradesh), Jodhpur-Pali (Rajasthan), and one location in Haryana.

Commerce and Industry Minister Piyush Goyal elaborated on the vision behind these new industrial cities, stating: “These areas will be developed as greenfield smart cities of global standards, built ‘ahead of demand’ on the ‘plug-n-play’ and ‘walk-to-work’ concepts.” He emphasised that the projects are expected to be completed by 2027, creating world-class infrastructure on acquired land.

The NICDP is anticipated to generate substantial employment opportunities, with projections of one million direct jobs and up to three million indirect jobs. Furthermore, these projects are expected to create an investment potential of approximately Rs 1.52 lakh crore.

This initiative aligns with the government’s Budget announcement to develop ‘plug and play’ industrial parks near 100 cities in partnership with states and the private sector.

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 such cities already under various stages of implementation, the addition of these 12 new locations will bring the total count to 20 industrial cities nationwide.

Goyal highlighted the advantages for investors, stating: “Investors will get land easily in these areas. We have already obtained basic environmental clearances, and anchor investors will receive discounts.” The minister also noted that these cities would feature multi-modal connectivity infrastructure, ensuring seamless movement of people, goods, and services.

The NICDP aims to position India as a strong player in global value chains by providing developed land parcels ready for immediate allotment. This approach is expected to make it easier for both domestic and international investors to set up manufacturing units in India.

As the government continues to focus on enhancing India’s manufacturing capabilities and attracting investments, these new industrial cities are poised to play a crucial role in the country’s economic growth and development.