Union Cabinet Approves 12 Industrial Smart Cities

1. Recently, the Union Cabinet has approved the establishment of 12 industrial smart cities across 6 major industrial corridors in 10 states with an investment of around ₹28,600 crore as part of the National Industrial Corridor Development Programme.
2. The smart cities will be located in: Khurpia (Uttarakhand), Khurpia (Punjab), Dighi (Maharashtra), Palakkad (Kerala), Agra and Prayagraj (Uttar Pradesh), Gaya (Bihar), Zaheerabad (Telangana), Orvakal and Kopparthy (Andhra Pradesh, Jodhpur-Pali (Rajasthan)

What is an Industrial Smart City?

1. An Industrial Smart City is a modern urban area that uses advanced technologies and data to improve industrial operations and promote sustainable development.
2. These cities aim to attract foreign investment, boost domestic manufacturing, and generate employment.

3. Objectives of Developing Industrial Smart Cities:

1. Global Value Chains: The initiative seeks to enhance India's position in global value chains by offering investors ready-to-allot land.
2. Modern Urban Concepts: It incorporates concepts like -
   • Plug-and-play: Pre-built infrastructure that allows businesses to start operations immediately.
   • Walk-to-work: Urban design encouraging people to live close to their workplaces, reducing car usage and promoting walking.

4. Development Road Map: These cities are being developed under the National Industrial Corridor Development Programme (NICDP), which aims to create world-class industrial cities.

1. NICDP Vision: NICDP is designed to create a vibrant industrial ecosystem, facilitating investments from both large industries and MSMEs.
2. Implementation: The programme is carried out by the National Industrial Corridor Development and Implementation Trust (NICDIT) and National Industrial Corridor Development Corporation Limited (NICDC).
3. 1^st Industrial Corridor: Delhi-Mumbai Industrial Corridor was the 1^st such project which was approved in 2007.
4. Self-Sustaining Cities: These industrial nodes will integrate residential and commercial spaces, functioning as self-sustaining urban areas.
5. Marketing and Implementation: The government will partner with Invest India for project marketing.
6. A Special Purpose Vehicle (SPV) will be set up to implement the parks, aiming for completion within 3 years depending on the cooperation from the state governments.

Key Features of Approved Industrial Smart Cities

Alignment with National Economic Goals & PM Gati-Shakti National Master Plan:

1. These smart cities align with India's goal of reaching USD 2 trillion in exports by 2030.
2. They will integrate with the PM GatiShakti National Master Plan, which includes multi-modal connectivity infrastructure for seamless movement of people, goods, and services.
3. This infrastructure will boost logistical efficiency and improve supply chains across the country.
4. The cities will form a 'necklace of industrial cities' along the Golden Quadrilateral, promoting connectivity and industrial growth.

Significance:

1. These projects aim to attract Foreign Direct Investment (FDI) from countries such as Singapore and Switzerland.
2. The cities are expected to create around 1 million direct jobs and up to 3 million indirect jobs, with an investment potential of Rs 1.5 lakh crore.
3. Developed under the NICDP, these cities will focus on sustainability by using ICT-enabled utilities and green technologies to minimize environmental impact.
4. Ready-to-allot land parcels will be available to attract both domestic and international investors, helping India strengthen its position in global value chains.

Challenges in Developing Industrial Smart Cities and solutions

Challenges	Solutions
Upgrading outdated infrastructure for IoT and high-speed internet requires major investment and faces logistical challenges, especially in older cities.	Create land banks, ensure fair compensation to reduce disputes, and use innovative methods like land pooling to speed up land acquisition processes.
Protecting large amounts of data from smart devices against breaches requires strong security measures and constant monitoring.	Conduct thorough environmental assessments, promote sustainable practices, and invest in infrastructure that supports sustainable growth.
Attracting financial investments, whether public or private, is challenging. Stakeholders must be convinced of the long-term benefits and return on investment (ROI).	Promote Public Private partnerships, sharing risks and rewards equitably while maintaining transparency and accountability in governance.
Addressing concerns about privacy, job losses due to automation, and lifestyle changes through effective communication and education is crucial for success.	Address skill shortages through vocational training, collaborating with industries, and providing incentives for businesses to invest in employee development.
Implementing smart city initiatives involves navigating complex local laws, regulations, and policies, which can be time-consuming and politically sensitive.	Simplify and digitize administrative processes, harmonize regulations across government levels, and increase transparency to improve efficiency and attract investors.

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