Industrial smart cities

Union Cabinet Greenlights 12 Industrial Smart Cities with ₹28,602 Crore Budget—A Game-Changer for Manufacturing

In a significant move to bolster domestic manufacturing and enhance India’s role in global value chains, the Union Cabinet has approved the establishment of 12 new industrial smart cities across various states. With a budget of Rs 28,602 crore, these cities are designed to create employment opportunities, attract investments, and offer robust infrastructure with ready-to-allot land for investors.

Key Highlights of the Cabinet Approval

Union Minister Ashwini Vaishnaw, during a media briefing on Wednesday, announced the approval of the 12 new industrial smart cities. This initiative aligns with the government’s broader vision of “Viksit Bharat” and aims to transform India’s industrial landscape by leveraging the strategic locations along the Golden Quadrilateral.

Distribution of Industrial Smart Cities

Andhra Pradesh: 2 cities
Bihar: 1 city
Other States: 9 cities

These industrial cities are part of a grand plan to develop ‘plug-and-play’ industrial parks in or near 100 cities, a commitment made by the government in the Budget. The initiative involves collaboration between the central government, state governments, and the private sector to boost manufacturing across the country.

Vision and Objectives

The development of these industrial smart cities is driven by the following objectives:

Infrastructure Development: The cities will feature robust and sustainable infrastructure to drive investments and support balanced regional development.
Employment Generation: The project has the potential to create 10 lakh direct jobs and up to 30 lakh indirect jobs, significantly contributing to India’s employment landscape.
Investment Potential: The total investment potential of these cities is estimated at Rs 1.5 lakh crore.
Global Value Chains: By providing ready-to-allot land and modern facilities, these cities will cement India’s role in global value chains.

Built on PM GatiShakti Principles

These industrial smart cities will incorporate the principles of PM GatiShakti, emphasizing the ‘plug-and-play’ and ‘walk-to-work’ concepts. This approach ensures planned urbanization and efficient connectivity, making it easier for industries to operate and for workers to access their workplaces conveniently.

Existing and New Projects

The Department for Promotion of Industry and Internal Trade (DPIIT) Secretary, Rajesh Kumar Singh, highlighted that eight such industrial cities are already in various stages of development:

Dholera, Gujarat
Auric, Maharashtra
Vikram Udyogpuri, Madhya Pradesh
Krishnapatnam, Andhra Pradesh

In these cities, trunk infrastructure—such as road connectivity, water, and power supply—has been created, and land allotment for industries is underway. The special purpose vehicles (SPVs) in the remaining four cities are currently constructing basic infrastructure.

With the addition of the 12 new cities announced in the Budget, the total number of industrial smart cities in the country will reach 20.

Conclusion

The approval of these 12 new industrial smart cities is a crucial step towards increasing the share of manufacturing in India’s GDP and generating millions of jobs. By providing world-class infrastructure and fostering a conducive environment for industries, these cities are set to become hubs of economic activity, driving India’s growth in the coming years.

FAQs:

1.What is the budget allocated for the development of these industrial smart cities?

A. The Union Cabinet has allocated Rs 28,602 crore for the development of 12 new industrial smart cities.

2.How many direct and indirect jobs are expected to be created?

A. The project has the potential to create 10 lakh direct jobs and up to 30 lakh indirect jobs.

3.Which states will have the new industrial smart cities?

A. The new cities will be established across various states, including Andhra Pradesh (2 cities) and Bihar (1 city), among others.

4.What are the principles guiding the development of these cities?

A. The cities are being developed based on PM GatiShakti principles, emphasizing ‘plug-and-play’ and ‘walk-to-work’ concepts.

5.How will these cities contribute to India’s manufacturing sector?

A. By providing robust infrastructure and ready-to-allot land, these cities will attract investments, boost domestic manufacturing, and increase the sector’s contribution to GDP.

6.What is the investment potential of these industrial smart cities?

A. The total investment potential is estimated at Rs 1.5 lakh crore.

7.How does this initiative align with the government’s vision?

A. The initiative aligns with the “Viksit Bharat” vision, aiming to create a network of industrial cities that contribute to balanced regional development and global value chains.

8.What is the significance of the Golden Quadrilateral in this project?

A. The industrial smart cities are strategically located along the Golden Quadrilateral, enhancing connectivity and accessibility for industries.

9.Which cities are already under development?

A. Cities like Dholera (Gujarat), Auric (Maharashtra), Vikram Udyogpuri (Madhya Pradesh), and Krishnapatnam (Andhra Pradesh) are already under various stages of development.