Twelve industrial smart city projects receive recent go-ahead by India government: The approval gave much impetus to industrial growth, as the development requires Rs 28,602 crore of investment. Those twelve industrial smart city projects will bring a major milestone to economic transformation in a big way as it would seek attention toward industrial infrastructure modernisation besides giving more employment and raising the regions’ standard economically, focusing more on industrial smart infrastructure in many ways.
Industrial infrastructure boost for the 12 projects
The 12 industrial smart cities are to be developed with an eye to strengthening the infrastructure that will service different kinds of sectors, including heavy engineering, pharmaceuticals, IT, food processing, and aerospace. Improved trunk infrastructure in roads, electricity supply, water supply, and waste management is what the Government hopes to attract business – both domestic and international business houses – to these locations.
The smart cities will be developed over the next 36-48 months after the appointment of EPC contractors. These smart cities will provide the much-needed infrastructure for industries to thrive while creating a conducive environment for innovation and investment.
State Governments and Public-Private Partnerships
The success of these industrial smart city projects depend on cooperation between the two state governments and the central government. Union Minister of Commerce and Industry, Piyush Goyal pointed out that while the land will be taken over from the state for the project, the central government is shouldering the cost of all trunk infrastructures inside. That puts together a very smooth integration of public and private sectors over expertise and resources.
The projects shall be managed by Special Purpose Vehicles (SPVs) that may involve private sector participation wherever the state government sees fit. These SPVs shall also explore innovative funding mechanisms, such as user fee funding, pricing innovations, and Public-Private Partnerships (PPPs), to ensure the sustainable development of the industrial cities.
Focus Sectors for Economic Growth Diversity
Each industrial city will have its own set of focus sectors based on local demand and growth opportunity. The sectoral customisation will ensure that smart cities can cater to a range of industries, such as manufacturing and research and development. The major sectors to be developed are identified as follows:
Heavy Engineering, Auto and Ancillaries, General manufacturing, Pharma & Bio Tech, Electronics Industries, IT& ITES, Agro, Food processing, Computer, Electronic and Optical Products, Aerospace, Rubbers & Plastic, Fabricated Metal Products, R&D, ICT, Electronics Industries, Fabrications (semiconductors), Nanotechnology and Opto electronics.
This diverse range of industries will not only help create specialized hubs for business but also attract international investment in key sectors of the Indian economy.
Strategic Financial Support and Development Models
The government’s approach in financing these industrial smart city projects is innovative and sustainable. Through PPPs and other financial models, it will minimize the fiscal burden that taxpayers will face while, at the same time ensuring that the projects are sustainable in the long run in terms of their finances.
Apart from this, multi-lateral and bilateral funding agencies could further complement the available funds for these projects. The global partnership model is supposed to speed up the development process and support India in achieving ambitious industrialization goals.
Transformation of India’s Industrial Landscape
These 12 new industrial smart cities are more than infrastructure projects-thay represent a major step forward in the industrial evolution of India. They will focus on high-demand sectors and offer world-class infrastructure, which means investment, job creation, and economic growth. In fact, they will be an aid to long-term goals for India as a global manufacturing hub and an innovation leader.
The government’s thrust to upgrade industrial infrastructure comes at a very important time when India is looking to modernize its economy, reduce dependency on imports, and enhance production within the country. The smart cities will set a new trend of industrialization that is sustainable, technology-intensive, and on par with global standards.
Conclusion: Vision for India’s Future
With these 12 new industrial smart cities, India would position herself as a world leader for industrial growth and innovation with diversity in sectors, in addition to solid infrastructural development and strategic financing which would help sustain economic growth. These would not only bring about a new industrial landscape for India but also provide opportunities to entrepreneurs, investors, and professionals working to seek economic benefits for the nation.
Refer:
Economic Times, Link to article
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