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Industrial Development

UP Confirms Rs 1,046-Crore Investment for Agra and Prayagraj Industrial Clusters

Uttar Pradesh will develop two world-class Integrated Manufacturing Clusters (IMCs) in Agra and Prayagraj at an estimated cost of Rs 1,046 crore, which will accelerate industrial development in the state and generate large-scale employment. A dedicated project implementation team will oversee the development and ensure timely execution, with a target completion time of 36 months.

Agra Industrial Smart City — UP Confirms Rs 1,046-Crore Investment for Agra and Prayagraj Industrial Clusters
Agra IMC Location1,058 acres in Rahan Kalan
Prayagraj IMC Location351 acres in Karchana block
Combined Project CostRs 1,046 crore
Agra Investment TargetOver Rs 3,400 crore
Prayagraj Investment TargetApproximately Rs 1,600 crore
Expected Jobs (Both Clusters)Over 87,000 jobs in Uttar Pradesh
Development Timeline36 months from project start
SPV StructureIntegrated Manufacturing Cluster Agra Prayagraj Limited with equal participation from central and state governments
Corridor InitiativePart of Amritsar-Kolkata Industrial Corridor (AKIC), signed via State Support Agreement (SSA) and Shareholder Agreement (SHA) between NICDC, Government of Uttar Pradesh, and UPSIDA

What Was Announced

As part of transforming Uttar Pradesh into an 'Udyam Pradesh' and achieving a trillion-dollar economy, two world-class Integrated Manufacturing Clusters are being developed in Agra and Prayagraj under the Amritsar-Kolkata Industrial Corridor (AKIC) project.

The Agra IMC will be developed across 1,058 acres in Rahan Kalan, while the Prayagraj IMC will span 351 acres in Karchana block. Both sites will be equipped with cutting-edge infrastructure, including roads, water and power supply, ICT services, and green spaces.

Who Made the Decision

The State Support Agreement (SSA) and Shareholder Agreement (SHA) were signed between the National Industrial Corridor Development Corporation (NICDC), the Government of Uttar Pradesh, and the Uttar Pradesh State Industrial Development Authority (UPSIDA), with Rajat Kumar Saini, CEO & MD of NICDC, and Mayur Maheshwari, CEO of UPSIDA, signing the agreements.

The SPV entity, AKIC Integrated Manufacturing Cluster Agra Prayagraj Limited, was formally incorporated on 30-01-2025.

Project Structure and Roles

NICDC, a central government agency, will support the project through funding and technical expertise, while the SPV—Integrated Manufacturing Cluster Agra Prayagraj Limited—with equal participation from both governments, will ensure timely and effective implementation.

The Uttar Pradesh State Industrial Development Authority (UPSIDA) will provide land and resources for this project.

Investment and Job Targets

IMC Agra, spread across 1,058 acres along Agra's Inner Ring Road, is strategically located just 25 km from the EDFC, and is designed with state-of-the-art infrastructure and Plug-n-Play facilities, aiming to attract over Rs 3,400 crore in investments.

IMC Prayagraj, spanning 352 acres, is designed to focus on industries such as e-mobility, food processing, leather, garments, cycle manufacturing, and packaging, with projected investments of approximately Rs 1,600 crore.

In Uttar Pradesh, projects in Agra and Prayagraj are expected to generate over 87,000 jobs.

Sector Focus and Facilities

The IMCs will house a wide array of manufacturing units alongside facilities for R&D, technological innovation, and skill development. Provisions have also been made to establish incubation centres that support traditional industries and foster entrepreneurship.

Agra is envisioned as a hub for leather products, food processing and beverages, pharmaceuticals, medical devices, engineering, and electronics system design and manufacturing, while Prayagraj will be developed as a major center for e-mobility-based automobiles, food and beverages, leather products, ready-made garments, bicycle manufacturing, and packaging.

Timeline and Execution

A dedicated project implementation team will oversee the development and ensure timely execution, with a target completion time of 36 months.

As of June 2025, the SPV has been formally established and initial procurement processes are underway, with a Programme Manager for New Cities tender issued in July 2025 seeking to finalize project management oversight.

Strategic Significance

Located along Agra's Inner Ring Road, the Agra IMC is strategically positioned between key junctions linking the Agra-Lucknow Expressway, 205 km from Delhi NCR, offering seamless road connectivity.

Once operational, the IMCs will play a crucial role in redefining the industrial identity of Agra and Prayagraj, placing them prominently on Uttar Pradesh's industrial map.

Development phases

Project Inception & SPV FormationJanuary 2025AKIC Integrated Manufacturing Cluster Agra PrayagrajLimited incorporated; State Support and ShareholderAgreementsInfrastructure Development2025–2026Core infrastructure including roads, utilities, ICTservices, and facilities across 1,409 acresCompletion Targetby June 2028Full operational status with plug-and-playmanufacturing zones ready for private investment

Frequently asked questions

What is the total investment for both clusters?

The total estimated cost is Rs 1,046 crore for the combined development of infrastructure at both Agra and Prayagraj sites. This represents central and state government investment in core infrastructure; private sector investment is projected separately.

What is different between the Agra and Prayagraj clusters?

Agra will focus on leather products, food processing, pharmaceuticals, and electronics, while Prayagraj will target e-mobility, food and beverages, leather, garments, and bicycle manufacturing.

Who owns and manages the clusters?

The SPV, Integrated Manufacturing Cluster Agra Prayagraj Limited, is structured with equal participation from both central and state governments. NICDC provides funding and technical expertise, while UPSIDA provides land and resources.

When will the clusters be operational?

The target completion time is 36 months from project initiation, placing full operational status by mid-2028.

How many jobs will these clusters create?

Projects in Agra and Prayagraj are expected to generate over 87,000 jobs in Uttar Pradesh.

Why are these clusters part of the Amritsar-Kolkata corridor?

The AKIC aims to strengthen the Make in India initiative by paving the way for a more self-reliant and globally competitive India, with these IMCs designed to become engines of industrial and economic growth.

Sources

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