India Bets Big on Newly Sanctioned Public Infrastructure Projects, Smart Industrial Cities

India has approved 12 new industrial smart cities and other infrastructure projects aimed at boosting India’s manufacturing ecosystem. The smart city projects under the National Industrial Corridor Development Programme (NICDP) will entail an investment of INR 286.02 billion (US$3.41 billion), while three railway projects across four states will seek to optimize logistics networks. Finally, a new hydro-power initiative seeks to upgrade power infrastructure in the Northeast region of the country.

On August 28, 2024, India’s Cabinet Committee on Economic Affairs (CCEA), led by Prime Minister Narendra Modi, approved 12 new smart city projects under the National Industrial Corridor Development Programme (NICDP) with an investment of INR 286.02 billion (US$3.41 billion). These projects are expected to attract INR 1.52 trillion (US$18.12 billion) in investments from large industries and MSMEs, creating 1 million direct and 3 million indirect jobs.

Industrial hubs in 12 new smart cities: What we know

The new industrial smart cities aim to strengthen India’s domestic manufacturing ecosystem, attract foreign investments, and boost job creation. They are part of the country’s wider strategy to drive economic growth and enhance the country’s global competitiveness.

Eleven of the 12 projects will be developed in the below locations:

• 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

One location remains undisclosed due to the Model Code of Conduct in election-bound states like Haryana, Maharashtra, Jharkhand, Delhi, and Jammu & Kashmir.

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These cities will be built as smart industrial hubs under the NICDP, with modern infrastructure based on sustainable concepts such as ‘plug-and-play’ and ‘walk-to-work’. The NICDP will support both large industries and MSMEs, facilitating India’s goal of achieving US$2 trillion in exports by 2030. The hubs will focus on industries such as technical textiles, electric vehicles, aero logistics, food processing, and tourism, and are expected to be completed within three years.

India’s Commerce and Industry Minister Piyush Goyal described the plan as a “necklace of industrial cities” connected by the Golden Quadrilateral national highway network. Some of these cities could also be developed in partnership with countries like Switzerland and Singapore.

Meanwhile, Rajat Saini, CEO of the National Industrial Corridor Development Corporation (NICDC), noted that Hyundai has already committed to establishing an automobile hub on 450 acres in Zaheerabad, Telangana, prior to Cabinet approval.

These projects are aligned with the PM GatiShakti National Master Plan, aiming for seamless multi-modal connectivity to improve the movement of goods, services, and people. On July 23, 2024, Union Finance Minister Nirmala Sitharaman announced plans to create “plug-and-play” industrial parks near 100 cities under NICDP.

New railway projects

The CCEA has approved INR 64.56 billion (US$769.9 million) for three railway projects aimed at improving logistics. These projects will extend across four states—Odisha, Jharkhand, West Bengal, and Chhattisgarh—marking a significant expansion of the Indian Railways network. The approved initiatives consist of two new railway lines and a multi-tracking project, collectively adding around 300 km to the network and impacting seven districts within these states.

These are essential routes for transportation of commodities such as agriculture products, fertilizer, coal, iron ore, steel, cement, limestone, etc.

Source: Press Information Bureau

Hydro-power projects

The Union Cabinet has approved equity support of INR 41.36 billion (US$493.2 million) to India’s northeastern states for developing hydro-power projects totaling 15,000 MW in capacity over the next eight years.

These initiatives are expected to generate substantial employment, drive economic growth, and promote environmentally sustainable practices.

(US$1 = INR 83.85)

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