Budget 2024: Government Announces 'Plug and Play' Industrial Parks in 100 Cities.

The government will develop "plug and play" industrial parks in 100 cities across the country, partnering with states and private companies, announced Finance Minister Nirmala Sitharaman in her Budget speech on Tuesday. She also revealed that 12 industrial parks will be sanctioned under the National Industrial Corridor Development Programme.

"Our government will facilitate the development of investment-ready 'plug and play' industrial parks with complete infrastructure in or near 100 cities, in partnership with the states and private sector, by better using town planning schemes," Sitharaman said.

Rajesh Jaggi, vice-chairman of real estate at Everstone Group, which backs Indospace, an industrial and logistics park developer, highlighted the transformative potential of this initiative. "Together with states and the private sector, this pioneering step has the potential to transform both industrial development and urban planning in a big way. These projects are going to serve as vibrant economic centres that drive development and innovation, poised to create a lasting impact," he said.

Manoj Purohit, partner and leader at BDO India, emphasized the benefits for the manufacturing sector. "The announcement for setting up 12 new industrial parks will boost the manufacturing sector and encourage new entrants to get easy entry into the space with much-needed financial support. It will also enhance employment opportunities and enable the banking sector to participate while financing the working capital needs," he stated.

Shashi Kiran Shetty, chairman and founder of Allcargo Group, added, "By providing comprehensive infrastructure and fostering collaboration between states and the private sector, this plan will attract investments, create jobs, and spur economic activity. Additionally, the sanctioning of twelve industrial parks under the National Industrial Corridor Development Programme will enhance our manufacturing capabilities and export potential."

Large conglomerates are already active in the industrial park segment. Reliance Industries is setting up such parks in Haryana and near Mumbai, with plans to develop an integrated industrial hub in Navi Mumbai. Mahindra and Mahindra runs an industrial park near Chennai called Mahindra World City.

BS