India is stepping into the future with the approval of 12 industrial smart city projects, aiming to revolutionise urban industrial landscapes. Union Commerce and Industry Minister Piyush Goyal disclosed the development in a written statement to the Rajya Sabha, highlighting a massive ₹28,602-crore investment, inclusive of land costs, dedicated to developing trunk infrastructure.
These smart cities are part of the National Industrial Corridor Development Program (NICDP), designed to foster state-of-the-art industrial ecosystems. As per the institutional framework, state governments will provide the required land, while the National Industrial Corridor Development and Implementation Trust (NICDIT) will supply equity for constructing essential infrastructure components. Each city under the program will be managed by a Special Purpose Vehicle (SPV), potentially involving private sector participation, depending on the respective state government’s approach. The SPVs have been authorised to leverage innovative funding mechanisms, including Public-Private Partnerships (PPP), user fee-based models, and bilateral or multilateral funding avenues.
Construction timelines for the trunk infrastructure are set between 36 to 48 months from the appointment of an Engineering, Procurement, and Construction (EPC) contractor. This strategic timeline aligns with the government’s vision to expedite infrastructure readiness while maintaining high-quality standards. The government has identified focus sectors tailored to the unique potential of each city, derived from comprehensive market demand assessments. These sectors include Heavy Engineering, Automotive and Ancillaries, IT & ITES, Pharmaceuticals, Biotechnology, Aerospace, and Nanotechnology, among others. These industries aim to provide a significant boost to India’s manufacturing capabilities, export potential, and job creation.
With sustainability at the core, these industrial hubs will integrate innovative urban planning and efficient resource management. The aim is not just economic growth but fostering vibrant communities around industrial clusters, ensuring a balanced approach to development. The initiative underlines India’s ambition to create a global industrial footprint by leveraging advanced technologies and infrastructure. As urbanisation accelerates, these industrial smart cities represent a crucial step toward making India a global manufacturing and innovation hub. Citizens and industries alike stand to benefit as these developments promise economic opportunities and modern amenities. This move is set to redefine India’s industrial ecosystem while positioning the country firmly on the path of sustainable growth.
