Monday, December 23, 2024

Why is DPIIT Focusing on 12 New Industrial Cities? Discover the Strategic Goals!

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India is set to see the development of 12 new industrial cities across various states. These cities aim to boost domestic manufacturing and create jobs, similar to the industrial hubs developed in Greater Noida, Uttar Pradesh, and Dholera in Gujarat. This initiative is led by the Department for Promotion of Industry and Internal Trade (DPIIT).

DPIIT Current Developments

According to DPIIT Secretary Rajesh Kumar Singh, eight industrial cities are already in different stages of implementation. Trunk infrastructure, which includes essential facilities like roads, water supply, and power, has been created in four cities: Dholera, Auric (Maharashtra), Vikram Udyogpuri (Madhya Pradesh), and Krishnapatnam (Andhra Pradesh). Land plots are being allotted for industries in these cities.

For the other four cities, the government’s special purpose vehicle (SPV) is in the process of constructing the basic infrastructure. This includes road connectivity, water supply, and power supply to make the cities fully operational.

New Industrial Cities Proposal

The proposal for 12 new industrial cities will be submitted to the Union cabinet for approval. These cities will be located in various states, including two in Andhra Pradesh and one in Bihar. The plans for these cities are already prepared, and the required land is available with the state governments. The next step involves approving the equity for the SPV to start the development.

With eight cities already under development and 12 new ones proposed, the total number of industrial cities in India will reach 20. These cities are termed “industrial smart cities” because they are designed with advanced infrastructure and environmental clearances in place. This ensures that companies can quickly set up their operations with a “plug and play” model.

Manufacturing and Job Creation

The development of these industrial cities is expected to significantly increase the share of manufacturing in India’s GDP. It will also create numerous job opportunities across the country. The availability of high-quality, dependable, eco-friendly, and robust infrastructure will attract investments from various industries.

Expert Opinions

Ashoo Gupta, Partner at Shardul Amarchand Mangaldas & Co, commented on the announcement of these smart cities. He mentioned that this innovative reform, in collaboration with state governments and the private sector, could significantly boost industrial growth and city planning. Gupta added that these projects will become dynamic economic centers that drive development and innovation, creating a lasting impact.

He also highlighted that the government’s approach of constructing essential infrastructure and providing land to industries will attract investments. The provision of high-quality infrastructure will ensure that these industrial cities become attractive destinations for businesses.

DPIIT Industrial Cities Proposal

The DPIIT’s proposal to set up 12 new industrial cities aims to boost domestic manufacturing and create jobs. With the development of these cities, India is poised to enhance its industrial capabilities and attract significant investments. The collaboration between the government, states, and the private sector will ensure the success of these smart cities, driving economic growth and innovation in the country.

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