Lok Sabha Question No. 471 (UNSTARRED), answered on 2021-12-01
Subject: Impact of Lockdown on Production
Ministry: COMMERCE AND INDUSTRY
Asked by: Sumalatha Ambareesh, D.K. Suresh, Nalin Kumar Kateel

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY

## DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 471.

TO BE ANSWERED ON WEDNESDAY, THE 1 ST  DECEMBER, 2021.

## IMPACT OF LOCKDOWN ON PRODUCTION

471.   SHRIMATI SUMALATHA AMBAREESH: SHRI D.K.SURESH: SHRI NALIN KUMAR KATEEL:

## Will the Minister of COMMERCE AND INDUSTRY be pleased to state: वाणिज्य  एवं उद्योग मंत्री

- (a) whether  the  Government  has  conducted  any  study  on  performance  of production  of  major  commodity  groups  to  assess  the  impact  of  COVID-19 lockdown on these sectors;
- (b) if so, the details thereof;
- (c) whether  the  Government  has  also  conducted  any  study  on  the  impact  of COVID-19 on exports of the country;
- (d) if so, the details thereof; and
- (e) the  details  of  the  measures  taken  by  the  Government  to  improve  the productivity of major commodity groups in the coming days?

## ANSWER

## वाणिज्य  एवं उद्योग मंत्रालय में राज्य मंत्री (श्री सोम प्रकाश) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI SOM PARKASH)

- (a) & (b): The Government has been assessing the performance of production of major  commodity  groups  by  monthly  indicators,  such  as,  Index  of Industrial  Production  (IIP)  and  Index  of  Eight  Core  Industries  (ICI). Monthly economic review of Ministries/Departments also plays a vital role  in  providing  policy  inputs  to  assess  the  impact  of  COVID-19. Pandemic  has  impacted  the  world  economy  including  India,  causing lower economic growth and disruption in production activities. Industrial production as measured by IIP has shown strong recovery in the current financial year 2021-22. The performance of major commodity groups and use-based category groups based on Index of Industrial Production for the latest 12 months is provided at Annex I & II respectively .

| (c) & (d):   | Department of Commerce has been providing details on India's foreign trade which assesses the trend of exports and imports. Exports from India were impacted due to COVID-19 pandemic during 2020-21. However, after the concerted effort of the government India's overall exports (Merchandise and Services combined) in October 2021 are estimated to be USD 56.51Billion, exhibiting a positive growth of 35.16 per cent over the same period last year and a positive growth of 29.13 per cent over October 2019. India's overall exports (Merchandise and Services combined) in April-October 2021 are estimated to be USD 369.39 Billion, exhibiting a positive growth of 39.83 per cent over the same period last year and a positive growth of 19.97 per cent over April-October 2019. Atmanirbhar Bharat mission for economic growth is a vision based on net exports and making India competitive. Government's focus on new and existing markets and products and simplification of procedures will greatly enhance the competitiveness of Indian exports. In order to leverage India's full export potential, government is promoting districts                                                                                                                                                                                                                                |
|--------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (e):         | Government has taken a number of measures to revive economic growth such as special economic and comprehensive package of Rs. 29.87 lakh crore, 34.5 percent increase in capital expenditure in Union Budget 2021-22 and relief package of Rs. 6.29 lakh crore in June 2021. Some of the key recent steps taken by DPIIT to boost GDP growth and manufacturing sector are: Production-Linked Incentive (PLI) Scheme with an outlay of Rs 1.97 lakh crore for 13 key sectors, launch of the PM Gati Shaki - a National Master Plan for multi-modal connectivity, reducing compliance burden on citizen and business to simplify, decriminalize & remove redundant laws, a liberal and transparent policy for attracting Foreign Direct Investment (FDI), launch of the National Single Window System (NSWS) as a one-stop for taking all the regulatory approvals and services in the country, building a strong eco-system for nurturing innovation and Startups in the country with the help of schemes such as Fund of Funds for Startups Scheme (FFS), and Startup India Seed Fund Scheme (SISFS) schemes, achieving integration of India Industrial National Land Bank (GIS Land Bank) in states and New Central Sector Scheme for industrial development of Jammu and Kashmir'. Details of measures taken by DPIIT to boost Industrial activities in country is provided at Annex-III. |

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## ANNEXURE- I

## ANNEXURE  REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE LOK SABHA UUSTARRED QUESTION  NO.  471 FOR ANSWER ON 01.12.2021.

|       |                                                                                                                              | Index of production of major commodity groups during last one year   | Index of production of major commodity groups during last one year   | Index of production of major commodity groups during last one year   | Index of production of major commodity groups during last one year   | Index of production of major commodity groups during last one year   | Index of production of major commodity groups during last one year   | Index of production of major commodity groups during last one year   | Index of production of major commodity groups during last one year   | Index of production of major commodity groups during last one year   | Index of production of major commodity groups during last one year   | Index of production of major commodity groups during last one year   | Index of production of major commodity groups during last one year   |
|-------|------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|----------------------------------------------------------------------|
| Sl No | Commodity Group                                                                                                              | Oct-20                                                               | Nov- 20                                                              | Dec- 20                                                              | Jan- 21                                                              | Feb- 21                                                              | Mar- 21                                                              | Apr- 21                                                              | May- 21                                                              | Jun- 21                                                              | Jul- 21*                                                             | Aug- 21*                                                             | Sep- 21*                                                             |
| 1     | Manufacture of food products                                                                                                 | 113.9                                                                | 133.9                                                                | 149.1                                                                | 149                                                                  | 136.7                                                                | 138.3                                                                | 127.8                                                                | 111.4                                                                | 111.3                                                                | 116.2                                                                | 116.3                                                                | 110.3                                                                |
| 2     | Manufacture of beverages                                                                                                     | 82.7                                                                 | 86.3                                                                 | 90.1                                                                 | 95.4                                                                 | 94.7                                                                 | 110.7                                                                | 91.5                                                                 | 54.8                                                                 | 82                                                                   | 90.2                                                                 | 86.3                                                                 | 86.3                                                                 |
| 3     | Manufacture of tobacco products                                                                                              | 86.5                                                                 | 92.9                                                                 | 98.1                                                                 | 103.7                                                                | 79.2                                                                 | 114                                                                  | 70                                                                   | 72.4                                                                 | 74                                                                   | 79.5                                                                 | 87                                                                   | 88.8                                                                 |
| 4     | Manufacture of textiles                                                                                                      | 110.7                                                                | 108.9                                                                | 114.9                                                                | 115.3                                                                | 113.5                                                                | 119.6                                                                | 114.6                                                                | 105.3                                                                | 111.3                                                                | 117.5                                                                | 119.7                                                                | 119.4                                                                |
| 5     | Manufacture of wearing apparel                                                                                               | 119.9                                                                | 101.7                                                                | 140                                                                  | 129.4                                                                | 140                                                                  | 143.8                                                                | 83.4                                                                 | 83.8                                                                 | 110                                                                  | 117.1                                                                | 117.6                                                                | 121.1                                                                |
| 6     | Manufacture of leather and related products                                                                                  | 116.4                                                                | 105                                                                  | 121.9                                                                | 124.9                                                                | 121.7                                                                | 123.4                                                                | 101.3                                                                | 67.1                                                                 | 94.1                                                                 | 114.5                                                                | 107.2                                                                | 109.8                                                                |
| 7     | Manufacture of wood and products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials | 111.8                                                                | 108.7                                                                | 126.6                                                                | 112                                                                  | 110.4                                                                | 124.3                                                                | 102                                                                  | 73.4                                                                 | 97.9                                                                 | 102.2                                                                | 111                                                                  | 110.7                                                                |
| 8     | Manufacture of paper and paper products                                                                                      | 71.7                                                                 | 71.6                                                                 | 78.1                                                                 | 80.2                                                                 | 79.3                                                                 | 89.7                                                                 | 88.1                                                                 | 78.7                                                                 | 76.3                                                                 | 85.1                                                                 | 82                                                                   | 76.3                                                                 |
| 9     | Printing and reproduction of recorded media                                                                                  | 69                                                                   | 70.5                                                                 | 83                                                                   | 70                                                                   | 67.6                                                                 | 75.8                                                                 | 64.7                                                                 | 61.9                                                                 | 68.7                                                                 | 68.4                                                                 | 69.1                                                                 | 69.9                                                                 |
| 10    | Manufacture of coke and refined petroleum products                                                                           | 109.3                                                                | 124.8                                                                | 125                                                                  | 129.3                                                                | 113.7                                                                | 130.9                                                                | 118.5                                                                | 113.8                                                                | 110.1                                                                | 117.9                                                                | 112.1                                                                | 108.6                                                                |
| 11    | Manufacture of chemicals and chemical products                                                                               | 128                                                                  | 120.4                                                                | 131.8                                                                | 131.6                                                                | 119                                                                  | 127.9                                                                | 118.1                                                                | 109.1                                                                | 116.3                                                                | 128                                                                  | 124.7                                                                | 123.7                                                                |
| 12    | Manufacture of pharmaceuticals, medicinal chemical and botanical products                                                    | 239.6                                                                | 226                                                                  | 239.9                                                                | 205.4                                                                | 216.8                                                                | 230.7                                                                | 202.3                                                                | 217.1                                                                | 226.9                                                                | 229.9                                                                | 233.8                                                                | 237.6                                                                |
| 13    | Manufacture of rubber and plastics products                                                                                  | 111.5                                                                | 104.7                                                                | 112.8                                                                | 108.5                                                                | 105.7                                                                | 114.8                                                                | 106.5                                                                | 96.7                                                                 | 99.4                                                                 | 108.3                                                                | 108.2                                                                | 107.6                                                                |
| 14    | Manufacture of other non- metallic mineral products                                                                          | 117.1                                                                | 112.7                                                                | 122.6                                                                | 127.2                                                                | 124.4                                                                | 140.3                                                                | 128.1                                                                | 110.1                                                                | 119.2                                                                | 126.8                                                                | 122.3                                                                | 116.4                                                                |

| 15   | Manufacture of basic metals                                              |   170.6 |   165.4 |   181.7 |   179.8 |   163.6 |   184.7 |   168.5 |   159.8 |   163.5 |   170 |   174 |   169.2 |
|------|--------------------------------------------------------------------------|---------|---------|---------|---------|---------|---------|---------|---------|---------|-------|-------|---------|
| 16   | Manufacture of fabricated metal products, except machinery and equipment |    95.7 |    81.8 |    99   |    93.7 |    92.4 |   102   |    78.2 |    64.4 |    79.7 |  89.9 |  91.3 |    88   |
| 17   | Manufacture of computer, electronic and optical products                 |   151.1 |   115   |   138.8 |   155.6 |   166.5 |   206.2 |   119.2 |    95.2 |   125.6 | 138.1 | 139.4 |   163.1 |
| 18   | Manufacture of electrical equipment                                      |   132.4 |   114.4 |   131.8 |   109.7 |   106.3 |   110.1 |    84.5 |    61.6 |    84.2 | 118.4 | 129.4 |   143.8 |
| 19   | Manufacture of machinery and equipment n.e.c.                            |   113.2 |   105.4 |   118.5 |   110   |   111.8 |   130.5 |    94.4 |    76.3 |    96.3 | 109.1 | 109   |   112.4 |
| 20   | Manufacture of motor vehicles, trailers and semi- trailers               |   109.9 |    99.2 |   103.2 |   107.8 |   105.6 |   114.9 |   102.2 |    59.2 |    87.8 | 101.4 |  93.6 |    90.5 |
| 21   | Manufacture of other transport equipment                                 |   167.2 |   139.3 |   121.1 |   136.4 |   134.5 |   145.3 |   108.7 |    52.2 |   103.4 | 129.3 | 124.6 |   132.4 |
| 22   | Manufacture of furniture                                                 |   167.7 |   144.7 |   183.9 |   163.4 |   162.4 |   171.3 |   128   |   118.5 |   158   | 161.7 | 168.2 |   172.6 |
| 23   | Other manufacturing                                                      |    83.4 |    65.5 |    76.7 |    85   |    86.2 |    93.5 |    94.9 |    67.2 |    75.7 |  84.5 |  95.3 |   106.2 |
|      | General Index (IIP)                                                      |   129.6 |   126.7 |   137.4 |   136.6 |   129.9 |   145.6 |   126.1 |   115.1 |   122.8 | 131.4 | 131.3 |   127.9 |

Source: Ministry of Statistics and Programme Implementation    *- Provisional

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ANNEXURE- II ANNEXURE  REFERRED TO IN REPLY TO PARTS (a) & (b) OF THE LOK SABHA UUSTARRED QUESTION  NO.  471 FOR ANSWER ON 01.12.2021. Table : Use-based category : Index of production of Use based category

## groups during last one year

| Months/Commoditi es                                          | Primary goods                                                | Capita l goods                                               | Intermediat e goods                                          | Infrastructur e/ construction goods                          | Consume r durables                                           | Consume r non- durables                                      |
|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|--------------------------------------------------------------|
| Oct-20                                                       | 117.9                                                        | 91.3                                                         | 140.7                                                        | 144.1                                                        | 133.8                                                        | 148.7                                                        |
| Nov-20                                                       | 122.2                                                        | 84.3                                                         | 138.4                                                        | 137.3                                                        | 113.0                                                        | 149.1                                                        |
| Dec-20                                                       | 130.1                                                        | 95.8                                                         | 150.3                                                        | 151.0                                                        | 124.9                                                        | 161.1                                                        |
| Jan-21                                                       | 134.4                                                        | 93.2                                                         | 149.7                                                        | 150.1                                                        | 123.9                                                        | 149.8                                                        |
| Feb-21                                                       | 125.0                                                        | 93.3                                                         | 138.0                                                        | 139.9                                                        | 125.0                                                        | 147.6                                                        |
| Mar-21                                                       | 145.0                                                        | 109.2                                                        | 153.9                                                        | 158.9                                                        | 133.0                                                        | 157.2                                                        |
| Apr-21                                                       | 126.5                                                        | 79.0                                                         | 139.6                                                        | 144.0                                                        | 103.3                                                        | 140.0                                                        |
| May-21                                                       | 122.8                                                        | 61.9                                                         | 129.1                                                        | 129.5                                                        | 71.6                                                         | 135.6                                                        |
| Jun-21                                                       | 122.4                                                        | 81.2                                                         | 132.7                                                        | 137.9                                                        | 100.1                                                        | 141.8                                                        |
| Jul-21                                                       | 128.5                                                        | 92.5                                                         | 143.5                                                        | 143.6                                                        | 118.7                                                        | 146.2                                                        |
| Aug-21                                                       | 127.3                                                        | 91.0                                                         | 143.0                                                        | 145.6                                                        | 118.5                                                        | 147.9                                                        |
| Sep-21                                                       | 117.3                                                        | 91.5                                                         | 140.2                                                        | 142.5                                                        | 126.4                                                        | 146.6                                                        |
| Growth over the corresponding period of previous year (2020) | Growth over the corresponding period of previous year (2020) | Growth over the corresponding period of previous year (2020) | Growth over the corresponding period of previous year (2020) | Growth over the corresponding period of previous year (2020) | Growth over the corresponding period of previous year (2020) | Growth over the corresponding period of previous year (2020) |
| Sep, 2021                                                    | 4.6                                                          | 1.3                                                          | 4.9                                                          | 7.4                                                          | -2                                                           | -0.5                                                         |
| Apr-Sep, 2021                                                | 15.8                                                         | 44.9                                                         | 32.4                                                         | 36.9                                                         | 38.4                                                         | 8.3                                                          |

Source: Ministry of Statistics and Programme Implementation    * - Provisional

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## ANNEXURE- III

## ANNEXURE    REFERRED  TO  IN  REPLY  TO  PART  (e)  OF  THE  LOK  SABHA UUSTARRED QUESTION  NO.  471 FOR ANSWER ON 01.12.2021.

## DPIIT's measures to boost Industrial activities in country

Government has been making continuous effort to promote strong and sustainable industrial development in the country.  DPIIT is working to create an enabling and business friendly environment in country to promote industrial growth and attract new investments. Some of the key measures are followings:

-  Production-Linked Incentive (PLI) Scheme with  an  outlay of Rs 1.97 lakh crore  for  13  key  sectors  have  been  announced  for  enhancing  India's manufacturing capabilities and exports. DPIIT is the nodal department for the PLI Scheme for White Goods - Air Conditioners and LED lights sector - with an outlay of Rs. 6,238 crore.
-  PM Gati Shaki launched by Hon'ble Prime Minister Shri Narendra Modi on 13th October, 2021: It is a National Master Plan for multi-modal connectivity. Gati Shakti - a  digital  platform  -  will  bring  16  Ministries  including  Railways  and  Roadways together  for  integrated  planning  and  coordinated  implementation  of  infrastructure connectivity projects. The  multi-modal  connectivity will provide integrated  and seamless connectivity for movement of people, goods and services from one mode of transport to another. It will facilitate the last mile connectivity of infrastructure and also reduce travel time for people.
-  Government  is  working  to  reduce  compliance  burden  in  order  to  spur investment in India. DPIIT is also working to reduce compliance burden on citizen and  business  and  the  aim  of  this  exercise  is  to  simplify,  decriminalize  &  remove redundant laws.
-  In order to monitor large database of compliances across Central Ministries/Departments and States/UTs, DPIIT has launched the Regulatory Compliance Portal on 1st January, 2021 (https://eodbrcp.dpiit.gov.in/). Based on data uploaded  on  Regulatory  Compliance  Portal,  more  than  25,000  compliances  have been reduced by Central Ministries/Departments and States/UTs combined. These measures will help India to become one of the top business destination in world.
-  Government  has  put  in  place  a  liberal  and  transparent  policy  for  attracting Foreign Direct Investment (FDI), wherein most of the sectors are open to FDI under the  automatic  route.  Government  reviews  FDI  policy  on  an  ongoing  basis  and changes are made in the FDI policy regime, from time to time, to ensure  that India remains increasingly attractive and investor-friendly investment destination. Measures taken by the Government on FDI Policy reforms have resulted in increased FDI  inflows  in  the  country,  which  year  after  year  is  setting  up  new  records.    India registered its highest ever annual FDI inflow of US$ 81.97 billion (provisional figures) in the financial year 2020-21. These trends in India's FDI are an endorsement of its status as a preferred investment destination amongst global investors.
-  In order  to  facilitate  and  promote  investment,  Government  has  set  up Empowered  Group  of  Secretaries  (EGoS)  and  Project  Development  Cells

(PDCs) in the Ministries/Departments. EGoS will look into hindrances being faced by  investors,  and  also  take  up  cross  cutting  policy  issues.  PDCs  (set  up  in  30 Ministries/Departments)  have  conducted  multiple  stakeholder  interactions.  These interactions are focused on understanding & resolving industry wide issues, identifying  policies  that  will  unlock  investment  potential  in  sectors,  pitching  existing opportunities, exploring new projects/proposals etc.

-  Launch of the National Single Window System (NSWS): DPIIT along with Invest India  initiated  the  process  of  developing  the  portal  as  a  National  Single  Window System (NSWS). Envisioned as a one-stop for taking all the regulatory approvals and services  in  the  country,  NSWS  [www.nsws.gov.in],  was  soft-launched  on  22nd September  2021  by  Hon'ble  Commerce  &  Industries  Minister,  Shri  Piyush  Goyal. This national portal integrates the existing clearance  systems  of  the  various Ministries/ Departments of Govt. of India and State Governments without disruption to  the  existing  IT  portals  of  Ministries/  Departments.  Approvals  of  18  Ministries/ Departments and 10 States Single Window Systems have been on-boarded in Phase I.
-  DPIIT  has  developed  the  Industrial  Information  System  (IIS) -  DPIIT  has developed  an  India  Industrial  Land  Bank  (earlier  known  as  Industrial  Information System)  which  provides  a  GIS-enabled  database  of  industrial  areas  including clusters, parks, nodes, zones, etc. across the country to help investors identify their preferred  location  for  investment.  4507  industrial  parks/estates/SEZs  in  5.15  lakh hectares have been mapped on India Industrial Land Bank (IILB) along with net land area availability. So far, plot level data of 2088 GIS enabled Parks of 23 States/UTs have been on boarded. A mobile application of IILB is also available on Android and iOS stores for the ease of investor.
-  Start-up India is a flagship initiative of the Government of India, intended to build a strong eco-system for nurturing innovation and Startups in the country that will drive sustainable economic growth and generate large scale employment opportunities.  As  on  26 th   November,  2021,  more  than  59000  startups  have  been recognized by DPIIT. These startups are growing almost at a rate of about 1000 new startups  every  month.  The  recognised  startups  have  reported  over  6.2  lakhs  job created  with  an  average  of  11  jobs  created  by  each  recognised  startup.  To incentivize  Startups,  Fund  of  Funds  for  Startups  Scheme  (FFS),  and  Startup  India Seed Fund Scheme (SISFS) schemes are being implemented by the DPIIT.
-  DPIIT is working closely on 24 Sub-sectors which have been chosen keeping in mind the Indian industries strengths and competitive edge, need  for import substitution,  potential  for  export  and  increased  employability.  These  24  subsectors are  -  furniture,  air-conditioners,  leather  and  footwear,  ready  to  eat,  fisheries,  agriproduce, auto components, aluminium, electronics, agrochemicals, steel, textiles, EV components  and  integrated  circuits,  ethanol,  ceramics,  set  top  boxes,  robotics, televisions,  close  circuit  cameras,  toys,  drones,  medical  devices,  sporting  goods, gym equipment.  Efforts are on to boost the growth of the sub-sectors in a holistic and coordinated manner.
-  Creating world class infrastructure through developing nodes across various Industrial  Corridors .  Industrial  Corridor Programme  is  being  developed  in  04 phases (with 32 nodes) as part of the National Master Plan for providing multimodal connectivity infrastructure.  It aims at creation of greenfield industrial smart cities with plug & play infrastructure in order to make  India a manufacturing hub. 4

Implementation works for 04 industrial cities under Delhi Mumbai Industrial Corridor

(DMIC) are underway, as follow: (a)  Major trunk infrastructure activities completed for 02 nodes, namely, Integrated Industrial Township (IITGN) at Greater Noida (747 acres), Uttar Pradesh; Integrated Industrial  Township  (IITVUL)  at  Vikram  Udyogpuri  (1,100  acres),  Ujjain  in  Madhya Pradesh and Bidkin Industrial Area (10.32 sq km), Aurangabad in Maharashtra. (b)  Trunk  infrastructure activities  nearing  completion in Dholera Special Investment Region (DSIR) (22.5 sq. kms), Gujarat and Shendra Industrial Area (AURIC) (8.39 sq. kms), Aurangabad in Maharashtra.

-  A total of 127 plots admeasuring nearly 754 acres have been allotted to companies with  investment  to  the  tune  of  more  than  Rs.  16,750  crore  including  investors  like HYOSUNG  (South  Korea),  NLMK  (Russia),  HAIER  (China),  TATA  Chemicals  & AMUL  so  far  in  these  04  greenfield  smart  industrial  cities/nodes.  Apart  from  the above allotted plots, 6,882 acres (Shendra 1,233 acres, Bidkin 1,746 acres, Dholera 2,619 acres, Vikram Udyogpuri 841 acres, Greater Noida 443 acres) of developed land parcels are available for immediate allotment.

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