New Industrial Smart Cities Set to Launch by December 2025, Completion Expected in Three Years

Key Takeaways

Infrastructure work for 11 of the 12 planned industrial smart cities will start by late 2025 and finish within three years.
The project, with an investment of Rs 28,602 crore, aims to create 10 lakh direct and 30 lakh indirect jobs.
Eight industrial parks will begin construction by November 30, with strong investor interest across multiple sectors.

Industrial Smart Cities Development Initiative

Infrastructure development for 11 planned industrial smart cities in India is set to begin by the end of 2025, targeting completion within three years, as reported by Financial Express. Rajat Kumar Saini, managing director and CEO of the National Industrial Corridor Development Corporation (NICDC), revealed that contracts for four industrial parks have already been awarded, with EPC (Engineering Procurement and Construction) contractors in place. Additional contracts for four more parks are expected to be awarded within the next 10 to 15 days.

Construction is scheduled to commence on eight parks by November 30 and, subsequently, on all 11 by December 31 of this year. This move follows the Central government’s approval in August 2024 for the development of 12 industrial smart cities spanning 10 states, involving a substantial investment of Rs 28,602 crore and covering a total land area of 26,000 acres.

Saini noted that swift project progress is attributed to effective preparation, inter-state cooperation, and insights gleaned from past initiatives. Notably, land acquisition for all 12 cities was completed prior to gaining Union Cabinet approval. Each industrial park will feature its own land allotment policy, a designated managing director, and a special purpose vehicle (SPV).

The smart industrial parks are projected to attract investments totaling Rs 1.5 lakh crore, generating approximately 10 lakh direct jobs and 30 lakh indirect jobs. Saini indicated strong interest from various sectors, and the allocation process is currently underway. Once core infrastructure is developed by EPC contractors, the allotted industrial units can start establishing their facilities.

These parks will be constructed with a sector-specific focus, with exclusive zones for foreign investors. For instance, in Tumakuru, Karnataka, 300 acres are specifically reserved for Japanese firms. The new cities will complement four existing smart industrial hubs in Dholera (Gujarat), Shendra-Bidkin (Maharashtra), Greater Noida (Uttar Pradesh), and Vikram Udyogpuri (Madhya Pradesh), along with four others that are under construction, bringing the total to 20.

The new industrial smart cities will be located in Khurpia (Uttarakhand), Rajpura (Punjab), Agra and Prayagraj (Uttar Pradesh), Gaya (Bihar), Dighi Port (Maharashtra), Jodhpur-Pali-Marwar (Rajasthan), Kopparthy and Orvakal (Andhra Pradesh), Zaheerabad (Telangana), and Palakkad (Kerala). These developments will span key industrial corridors, including Amritsar-Kolkata, Delhi-Mumbai, Vizag-Chennai, Hyderabad-Bengaluru, Hyderabad-Nagpur, and Chennai-Bengaluru.

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