A dozen industrial smart cities across 10 states that have been approved by the Cabinet Committee on Economic Affairs will be completed by 2027. These smart cities, entailing an initial cost of Rs 28,602 crore, are projected to generate 10 lakh direct jobs and at least 30 lakh indirect jobs, Commerce & Industry Minister Piyush Goyal said on Wednesday.
"We need support from the states for these projects, and if they cooperate, we can complete them within three years," Goyal told the media after a Cabinet meeting.
Land acquisition and environmental clearance have been completed for all 12 projects, which are expected to attract investments to the tune of around Rs 1.52 lakh crore, the minister said.
"These industrial smart cities will cover the country like a golden quadrilateral, forming a grand necklace. We also hope the states that are not covered so far, such as Odisha and West Bengal, also come forward," Goyal said, adding that the Union government had received a proposal from West Bengal Chief Minister Mamata Banerjee, but it was later withdrawn.
The designated locations for these industrial zones include Khurpia in Uttarakhand; Rajpura-Patiala in Punjab; Dighi in Maharashtra; Palakkad in Kerala; Agra and Prayagraj in Uttar Pradesh; Gaya in Bihar; Zaheerabad in Telangana; Orvakal and Kopparthy in Andhra Pradesh; Jodhpur-Pali in Rajasthan; and one unspecified location in Haryana.
Goyal said there would be a total of 20 industrial smart cities in the country, as eight such cities are already in the works.
In Dholera (Gujarat), Auric (Maharashtra), Vikram Udyogpuri (Madhya Pradesh) and Krishnapatnam (Andhra Pradesh), the primary infrastructure has been established, and the allocation of land plots to industries is in progress. So far, about 320 plots across 1,900 acres have been allotted to anchor investors, such as South Korea's Hyosung Corp., Amul, Russia's NLMK Group, Haier India, Tata Chemicals and Piramal Pharma.
Four other projects—Tumakuru in Karnataka, Krishnapatnam in Andhra Pradesh, Nangal Chaudhary in Haryana, and Dadri in Uttar Pradesh—are under construction.
These industrial nodes will act as catalysts for achieving $2 trillion in exports by 2030. It will be developed as greenfield smart cities of global standards, built 'ahead of demand' on the 'plug-n-play' concept.
To be developed under the National Industrial Corridor Development Programme, the investment towards these proposed smart cities will be borne equally by the Centre and states. “State contribution comes in the form of land, and we will give a matching equity or debt depending on the case," Goyal said. "The equity contribution for the project is pegged at about Rs 12,000 crore, while the land cost is estimated to be Rs 11,000 crore."
Additionally, if the infrastructure project costs exceed initial estimates, states can seek financial assistance from the Centre. The debt component for these projects is about Rs 2,000 crore, which will have to be repaid within 10 years.
Goyal said the ministry received interest from countries such as Switzerland and Singapore to form partnerships for developing industrial townships and cities. "We have held talks with the Institute of Technical Education in Singapore about collaborating on skill development," the minister said.
Rajat Saini, managing director of National Industrial Corridor Development Corp., said automaker Hyundai agreed to set up an automobile hub on 450 acres at the Zaheerabad industrial smart city in Telangana before Cabinet approval.
Saini added that so far, NICDC's cities have attracted investments from economies like the United States, Japan, South Korea, the UK, Russia and China. "The upcoming industrial parks are poised to transform India's industrial landscape and significantly boost economic growth," he said.
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