India's 12 New Greenfield Industrial Cities See Rapid Progress in Development

The Ministry of Commerce & Industry confirmed that Special Purpose Vehicles (SPVs) have been formed for all 12 projects, and Engineering, Procurement, and Construction (EPC) contractors have already been appointed for nine of them.

According to the Ministry, "The present status of 12 new greenfield industrial cities/nodes approved in the year 2024" shows that the government has completed the incorporation of SPVs for every project. These cities include the Integrated Manufacturing Clusters (IMC) at Khurpia, Rajpura-Patiala, Hisar, Agra, Prayagraj, and Gaya, as well as industrial areas in Dighi Port, Palakkad, Jodhpur Pali Marwar, Orvakal, Kopparthy, and Zaheerabad.

Significant progress has been made in securing the necessary permissions and leadership for these hubs. Environment clearances have been secured for 11 out of the 12 projects, and programme managers have been onboarded for nine projects to monitor execution and coordinate between stakeholders. The release stated that "EPC contractors have been appointed for 9 projects, and for 1 project, evaluation has been completed and the contractor has been finalised."

The development of these cities involves a two-tier infrastructure approach. The internal trunk infrastructure, such as roads, water supply, and power distribution, is being built as part of the industrial city itself. Meanwhile, external connectivity like bulk power and telecom is being mapped through the PM GatiShakti National Master Plan. The release noted that "As of January 2026, a total of 08 cities were successfully awarded EPC contracts for the construction of internal trunk infrastructure works," with two more projects reaching similar stages shortly after.

The government highlighted the success of existing industrial cities like Dholera and Greater Noida to show the potential of these new projects. These completed areas have already attracted 434 domestic and global companies, including major names like Tata Chemicals, Amul, and South Korea's Hyosung. However, the Ministry clarified that for the 12 new cities, "Commitments from investors for these greenfield industrial cities are not yet sought" as they are still in various stages of development.

A key feature of these new cities is the focus on the "walk-to-work" concept. The plans include not just factories, but also schools, hospitals, and housing. The release noted that "Industrial Townships under the NICDP are planned with adequate housing and social infrastructure such as schools, healthcare etc. to ensure that workers employed in industrial areas have convenient access to nearby residences."

To support this integrated lifestyle, a significant portion of the land is being reserved for non-industrial purposes. The Ministry stated that "Under this framework, 20% to 30% of the total project area is earmarked for non-industrial uses, including residential, commercial, institutional, and green spaces." This strategy aims to minimise commuting challenges and provide workers with essential civic amenities within the township.

- ANI