Lok Sabha Question No. 2797 (UNSTARRED), answered on 2026-03-10
Subject: New Industrial Smart Cities
Ministry: COMMERCE AND INDUSTRY
Asked by: Dr. D. Purandeswari, Shri Ravindra Dattaram Waikar, Shri Shrirang Appa Chandu Barne, Shri Naresh Ganpat Mhaske, Smt. Bharti Pardhi, Dr. Shrikant Eknath Shinde

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT FOR PROMOTION OF INDUSTRY AND INTERNAL TRADE

## LOK SABHA

UNSTARRED QUESTION NO. 2797. TO BE ANSWERED ON TUESDAY, THE 10 TH  MARCH, 2026.

## NEW INDUSTRIAL SMART CITIES

## 2797.  DR. D. PURANDESWARI:

SHRI RAVINDRA DATTARAM WAIKAR:

SHRI SHRIRANG APPA CHANDU BARNE:

SHRI NARESH GANPAT MHASKE:

SMT. BHARTI PARDHI:

DR. SHRIKANT EKNATH SHINDE:

Will the Minister of COMMERCE AND INDUSTRY be pleased to state:

## वाणिज्य एवं उद्योग मंत्री

- (a) whether  the  development  of  12  new  industrial  smart  cities  proves  the government's  vision  of  creating  "pockets  of  excellence"  for  manufacturing particularly in Maharashtra, Madhya Pradesh and Andhra Pradesh;
- (b) whether the 74% land allotment in early-phase corridors reflects the high global confidence in India's industrial infrastructure;
- (c) whether  the  "Plug-and-Play"  model  has  successfully  addressed  the  primary pain point of land acquisition for new-age entrepreneurs;
- (d) whether  these  corridors  are  effectively  decentralising  industrial  growth  and creating  high-quality  employment  in  tier-2  and  tier-3  cities  particularly  in Maharashtra, Madhya Pradesh and Andhra Pradesh;
- (e) whether  the  24/7  power  and  world-class  utilities  in  these  cities  ensure  that Indian manufacturing remains globally cost-competitive;
- (f) Whether the NICDP serves as the most robust foundation for achieving the "Zero Effect, Zero Defect" manufacturing vision; and
- (g) if so, the details thereof?

## ANSWER

## वाणिज्य एवं उद्योग मंत्रालय में राज्य मंत्री ( श्री णिणिन प्रसाद ) THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY (SHRI JITIN PRASADA)

- (a) to (g): Yes. The Government of India in August 2024 approved the development of 12 new industrial smart cities under the National Industrial Corridor Development Programme (NICDP), which is intended to create greenfield industrial smart cities/clusters  of  global  standards  to  foster  global  manufacturing.  These  12 industrial nodes are spread across 10 States, including Dighi in Maharashtra and Kopparthy and Orvakal in Andhra Pradesh.

About 75% of the industrial land (4,436 acres) has been allotted to investors in four completed Industrial Smart Cities - Dholera, Shendra-Bidkin, IIT Greater Noida,  and  IIT  Vikram  Udyogpuri.  Additionally,  plots  have  been  allotted  in Tumakuru, Karnataka (260 acres), and Prayagraj, Uttar Pradesh (40 acres). This reflects strong investor interest and growing confidence in India's industrial infrastructure.

The Plug-and-Play model has substantially reduced entry barriers for investors by addressing land acquisition challenges. Project proposals are considered for approval by the Cabinet Committee on Economic Affairs (CCEA) only after the concerned State Government confirms that at least 80% of the required land has  been  acquired,  thereby  minimising  land-related  uncertainties.  A  Land Allotment  Policy  is  also  established  at  the  project's  inception  to  ensure transparent and time-bound allotment through the Electronic Land Management  System  (ELMS),  enabling  industries  to  commence  operations without delays. Additionally, small- sized plots are earmarked for MSMEs, along with supportive incentives under  State Government policies to encourage newage entrepreneurs.

The  Industrial  Smart  Cities  under  the  Programme  are  strategically  located across diverse regions of the country, including in and around Tier-2 and Tier3  cities  such  as  Dighi  Port  Industrial  Area  (Maharashtra),  Orvakal  and Kopparthy  (Andhra  Pradesh)  and  IIT-Vikram  Udyogpuri  (Madhya  Pradesh). Their  development  aims  to  promote  balanced  and  decentralised  industrial growth  beyond  traditional  metropolitan  centres  and  is  expected  to  generate approximately  10  lakh  direct  jobs,  including  high-quality  manufacturing  and services  employment, thereby strengthening economic activity in  Tier-2 and Tier-3 cities and catalysing regional economic development.

The  industrial  cities  under  the  Programme  are  being  developed  with  the provision of  a  24×7  reliable  power  supply,  integrated  water  management systems, ICT- enabled utilities and other world-class infrastructure. Common facilities  such  as  Sewage  Treatment  Plants,  Water  Treatment  Plants  and Common Effluent Treatment Plants are being created as shared infrastructure, which reduces the need for individual units to set up captive utilities and thereby lowers  initial  capital  expenditure  and  fixed  costs,  supporting  global  cost competitiveness of Indian manufacturing.

The Zero Defect Zero Effect (ZED) scheme, launched by India in 2016, enables Micro, Small, and Medium Enterprises (MSMEs) to produce high-quality goods with no defects (Zero Defect) and minimal environmental impact (Zero Effect). The NICDP incorporates sustainability principles such as green building norms, renewable  energy  integration  and  efficient  waste  management,  thereby providing  a  robust  foundation  to  advance  the  'Zero  Effect,  Zero  Defect' manufacturing vision of high-quality  production  with  minimal  environmental impact.  Further, as part of quality assurance and certification initiatives, a 12,000 sq. ft. area at Shendra- Bidkin has been allotted to the National Test House (NTH) to establish a sample collection centre with test facilities.

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