India to set up 12 new smart cities with a Rs 28,000 crore outlay. Details inside

The Union Cabinet has greenlit setting up of 12 new industrial smart cities various states, backed by an investment of Rs 28,602 crore. 

The move aims to strengthen India's domestic manufacturing capabilities, with Union Minister Ashwini Vaishnaw outlining the specifics during a media briefing on Wednesday. 

Among the 12 planned cities, Andhra Pradesh will host two, while Bihar will see one. This initiative aligns with the government’s broader vision of establishing 'plug and play' industrial parks in or near 100 cities, a commitment made in the Union Budget to enhance manufacturing through collaborative efforts with states and the private sector.

These smart cities will be part of a grand industrial corridor that mirrors the Golden Quadrilateral, encompassing a network of advanced urban centers designed on PM GatiShakti principles. 

With a projected employment generation capacity of 10 lakh direct and up to 30 lakh indirect jobs, these cities are poised to become significant hubs for investment, drawing in an estimated Rs 1.5 lakh crore.

The infrastructure in these cities is designed for seamless operations, featuring 'plug-n-play' and 'walk-to-work' concepts that cater to the needs of modern industries while promoting balanced regional development. 

The government’s strategy also includes ready-to-allot land for investors, ensuring that India strengthens its position in global value chains.

Currently, eight industrial cities are at different stages of development. Trunk infrastructure, including road connectivity, water, and power supply, has been established in cities like Dholera (Gujarat), Auric (Maharashtra), Vikram Udyogpuri (Madhya Pradesh), and Krishnapatnam (Andhra Pradesh), with land allotments underway for industrial use. For the remaining cities, the government's special purpose vehicle is focused on laying the foundational infrastructure.

With the addition of these 12 new cities, the total number of industrial smart cities in India will rise to 20, marking a significant step towards increasing the manufacturing sector's contribution to the country's GDP and generating employment. 

The Cabinet also decided to expand the Agri Infrastructure Fund, initially launched in 2020 with a corpus of Rs 1 lakh crore. The fund is primarily focused on enhancing post-harvest agricultural infrastructure, including the development of pack houses, cold storage facilities, refrigerated vehicles, and primary processing units.

With the recent expansion, integrated secondary processing and coverage under Component A of the PM Kusum scheme have been added to the fund’s focus areas.

Additionally, the expansion includes provisions for credit guarantees to support projects under this initiative. This move aims to help farmers add value to their produce and establish agri-based industries.

In another significant decision, the Cabinet approved equity support for hydro-electric projects in the North East under the Act East policy.

The North Eastern region, with a hydro-electricity potential of 62 GW, is key to achieving the country's clean energy goals. Recognizing the need for financial backing, the government has committed Rs 4,136 crore in equity support to the North Eastern states for developing these hydro power projects. This initiative is expected to drive development in the region and improve the quality of life for its residents.