Rs 28,602 Crore Industrial Smart City Projects Approved by Union
The Union Government has given its approval for greenfield industrial smart city projects worth Rs 28,602 crore. These projects are planned to be located in 12 different locations across states in India. The combined potential of these projects is to attract over Rs 1.52 lakh crore in investments, which will create approximately 4 million direct and indirect jobs within the next three years. The decision was made in a recent cabinet meeting, and two ministers provided the details of these projects.
Strategically Located Industrial Areas Along Major Corridors
These industrial areas, with their environment-friendly “plug-and-play” infrastructure, are aimed at accelerating the shift towards sustainable development. The projects have been strategically planned along six major corridors. The states involved in these projects include Uttarakhand, Punjab, Maharashtra, Kerala, Uttar Pradesh, Bihar, Telangana, Andhra Pradesh, and Rajasthan. Uttar Pradesh is the host of projects in two locations.
Progress and Implementation Status
Out of the 12 planned industrial cities, eight are already in different stages of implementation, bringing the total number to 20. The advantage of these projects is that the lands required for them have already been acquired, which should enable them to start functioning within the next three years. However, the actual timeline might vary depending on the efforts made by the respective states involved. For example, Maharashtra is striving to complete its industrial city project even before the three-year period.
The four already-implemented projects, which have seen the creation of trunk infrastructure, are Dholera in Gujarat, Auric in Maharashtra, Vikram Udyogpuri in Madhya Pradesh, and Krishnapatnam in Andhra Pradesh. In addition to these, there are four other projects currently under implementation – namely Tumakuru in Karnataka, Krishnapatnam in Andhra Pradesh, Nangal Chaudhary in Haryana, and Dadri-Greater Noida in Uttar Pradesh. The Commerce and Industry Minister, Piyush Goyal, revealed that the Tumakuru project faced initial delays due to “inhibitions” from the Karnataka government, but eventually, all states cooperated.
Equity and Funding
Officials have stated that both the states and the Central Government will have equity stakes in all the projects, with a proportion of 51:49 to each party. The equity component of the respective state is represented by the land value in the special purpose vehicle (SPV). On the other hand, the Central Government provides equity contributions by creating the necessary infrastructure. Apart from the equity component, the Central Government also offers long-term loans to cover any shortfall, which will then be repaid by the respective SPV within 10 years.
Greenfield Smart Cities and Advanced Infrastructure
Each industrial city is required to have a minimum contiguous area of 1,000 acres, with a few exceptions. They are all built to follow the global standards of greenfield smart cities. These cities are equipped with advanced infrastructure that supports sustainable and efficient industrial operations. The infrastructure is designed to provide multi-modal connectivity, ensuring seamless movement of people, goods, and services within the cities.
These industrial smart cities are a major development in India’s infrastructure sector. With their focus on sustainability and advanced infrastructure, they are expected to attract substantial investments and generate significant employment opportunities. The implementation of these projects will not only promote inclusive growth but also contribute to the overall economic development of the country.
