India to build 12 Smart Industrial Cities under NICDP

NEW DELHI: Prime Minister of India, Narendra Modi has approved the establishment of 12 industrial smart cities under the National Industrial Corridor Development Programme (NICDP) with an estimated investment of ₹28,602 crore.

The Cabinet Committee on Economic Affairs, led by the Prime Minister, announced that these smart cities will be developed across 10 states, strategically positioned along six major industrial corridors. These corridors include Amritsar-Kolkata, Delhi-Mumbai, Vizag-Chennai, Hyderabad-Bengaluru, Hyderabad-Nagpur, and Chennai-Bengaluru.

According to a government statement, the industrial smart cities 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), and Jodhpur-Pali (Rajasthan).

Ashwini Vaishnaw, Minister of Electronics and Information Technology, Government of India, emphasised that the initiative is expected to create an investment potential of approximately ₹ 1.52 lakh crore. The Cabinet has highlighted that these cities will be developed as greenfield smart cities of global standards, based on ‘plug-n-play’ and ‘walk-to-work’ concepts. This approach aims to build cities with advanced infrastructure that ensures sustainable and efficient industrial operations, meeting future demand in advance.

“This initiative is set to revolutionise India’s industrial landscape, creating a robust network of industrial nodes and cities that will significantly boost economic growth and global competitiveness,” Vaishnaw stated. He further added that these projects align with the vision of ‘Viksit Bharat’—a developed India—and will enhance India’s role in global value chains by offering readily available land for investors.

The NICDP aims to position India as a key player in global value chains by providing developed land parcels ready for immediate allotment. This will facilitate the setup of manufacturing units by domestic and international investors, aligning with the broader goal of creating an ‘Atmanirbhar Bharat’ or self-reliant India. The initiative is expected to drive economic growth through increased industrial output and employment opportunities.

In addition to these developments, the cabinet approved three major railway infrastructure projects totaling 296 kilometers in length, with an estimated cost of ₹6,456 crore. These projects aim to enhance rail connectivity and are expected to stimulate regional development, particularly in districts like Odisha’s Nuapada and Jharkhand’s East Singhbhum.

The cabinet also announced the expansion of the Agri Infrastructure Fund, which was initially launched in 2020 with a budget of ₹ one lakh crore. This fund focuses on post-harvest agricultural infrastructure, such as pack houses, cold storage, refrigerated vehicles, and primary processing units. The expansion will now include integrated secondary processing and the coverage of Component A of the PM-Kusum scheme, which provides credit guarantees for these projects. This initiative aims to help farmers add value to their products and establish agri-based industries.

Further, the government has approved equity support of ₹4,136 crore for the development of hydro-electric projects in the North Eastern states, which have the potential to generate 62 GW of hydro-electricity. This clean energy initiative is expected to significantly contribute to the nation’s climate goals while fostering development in the North Eastern region.

The projects under the NICDP are designed with a strong focus on sustainability, incorporating ICT-enabled utilities and green technologies to minimize environmental impact. By providing reliable and sustainable infrastructure, the government aims to create industrial cities that are not only economic hubs but also models of environmental stewardship.