Parliament Updates on 12 Industrial Smart City Projects’ Status
The Indian government has recently approved 12 new industrial smart city projects, aiming to boost the country’s industrial development through state-of-the-art infrastructure and innovative sector-focused initiatives. Union Minister of Commerce and Industry, Piyush Goyal, informed the Rajya Sabha that these projects, which have a total estimated cost of Rs 28,602 crore (including land costs), are poised to play a pivotal role in the country’s growth trajectory.
The approval for these projects came in August, under the National Industrial Corridor Development and Implementation Trust (NICDIT). The government is committed to providing financial and institutional frameworks to ensure the successful development of internal trunk infrastructure in these cities. The state governments will be responsible for providing land, while the Government of India, through NICDIT, will provide equity funding for the development of these essential infrastructure components. The timelines for the construction of these trunk infrastructure packages are estimated to span 36 to 48 months from the date of appointment of the EPC (Engineering, Procurement, and Construction) contractor, with the goal of transforming these cities into industrial hubs that attract investments and foster innovation.
Each of these industrial cities or nodes will be managed by a Special Purpose Vehicle (SPV), which may include private sector participation, depending on the state government’s decision. The SPVs are designed to leverage innovative infrastructure funding and delivery mechanisms, such as user fee funding, pricing innovations, and public-private partnerships (PPP). In some cases, bilateral or multilateral funding may also be sought to finance these ambitious projects. The focus of these industrial smart cities varies based on market demand assessments, with sectors such as heavy engineering, auto manufacturing and its ancillary industries, pharmaceuticals, electronics, IT and IT-enabled services, aerospace, food processing, biotechnology, and nanotechnology being prioritized. The emphasis on these sectors is expected to make the cities attractive to both domestic and international investors, creating jobs and spurring economic growth. Through these smart city initiatives, the government is not only looking to upgrade industrial infrastructure but also to create sustainable, high-tech environments that foster innovation, improve manufacturing productivity, and position India as a global leader in industrial and technological advancement.
