CCEA Approves ₹28,602 Crore Investment for 12 Industrial Smart Cities.

The government has given the green light to the development of 12 industrial smart cities across 10 states, with an estimated investment of ₹28,602 crore. These smart cities are expected to be completed by 2027, creating around 10 lakh direct jobs and at least 30 lakh indirect jobs, according to the government's projections.

Commerce & Industry Minister Piyush Goyal announced that all 12 projects have received basic environmental clearances, and land acquisition is complete. These cities are anticipated to attract further investments totaling at least ₹1.5 lakh crore. Following the Cabinet Committee on Economic Affairs (CCEA) approval, Goyal emphasized that these industrial smart cities would be strategically positioned across the country, forming a "golden quadrilateral" of development. He also mentioned plans to collaborate with state governments to establish multi-modal hubs, likening the network of smart cities to "beads on a necklace."

The 12 industrial zones, developed under the National Industrial Corridor Development Programme (NICDP), will be spread along six major corridors. These zones will be located 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.

Goyal also noted that these new developments will add to the existing eight industrial smart cities already in various stages of implementation, including those in Dholera (Gujarat), Auric (Maharashtra), Vikram Udyogpuri (Madhya Pradesh), and Krishnapatnam (Andhra Pradesh), where key infrastructure is already in place.

The Minister underscored the significance of these industrial nodes in achieving the government’s target of $2 trillion in exports by 2030, aligning with the vision of a self-reliant and globally competitive India. These industrial townships will be developed as greenfield smart cities built to global standards and designed on the 'plug-n-play' and 'walk-to-work' models, ensuring they are equipped with advanced infrastructure for sustainable industrial operations.

The projects will be funded through a 50:50 partnership between the Centre and the states. The Centre will contribute an estimated ₹12,000 crore in equity, while the states will provide land valued at approximately ₹11,000 crore. If the infrastructure costs exceed estimates, states can borrow from the Centre, with the estimated debt component around ₹2,000 crore. The remaining funds will come from internal accruals of the special purpose vehicles tasked with implementing the projects, according to an official source.

HBL