Gujarat Budget 2026-27 Allocates ₹610 Crore for Dholera SIR Trunk Infrastructure

What was decided

Finance Minister Kanubhai Desai proposed ₹610 crore for trunk infrastructure development at Dholera Special Investment Region (SIR) as part of the Gujarat state budget for the financial year 2026-27. Under Phase-1 of the Logistics and Trunk Infrastructure Project at Dholera SIR, the government will invest ₹610 crore, including funding from the Developed Gujarat Fund, a fund also referred to in budget commentary as the Viksit Gujarat Fund. Another outlet reporting the same budget line described it as the allocation of Rs 610 crore under the Viksit Gujarat Fund for Phase I logistics and trunk infrastructure at Dholera.

Who decided it, and in what forum

The allocation was announced by the Finance Minister of Gujarat, Mr. Kanubhai Desai, presented the Budget for the financial year 2026-27 on February 18, 2026, in the Gujarat Legislative Assembly. It forms one line item within the state's overall financial plan: the Government of Gujarat presented the Budget for the financial year 2026–27 with a total outlay of ₹4,08,053 crore, marking an absolute increase of ₹37,803 crore over the previous year. This is a state budget appropriation decision, not a separate notification by the Dholera Special Investment Region Development Authority (DSIRDA) or DICDL — those bodies are expected to execute the works the funds pay for.

The funding vehicle: Viksit Gujarat Fund

The Dholera trunk infrastructure allocation draws in part on a larger state fund created to bankroll long-term development projects. The budget provides for a ₹50,000 crore Viksit Gujarat Fund over five years, with ₹10,000 crore allocated this year. This fund was first announced in the FY2025-26 budget, when the Finance Minister proposed to create a ₹50 thousand crore Viksit Gujarat Fund over the next five years, with an allocation of ₹5,000 crore in that budget. The Dholera trunk infrastructure line is one of the projects drawing on this pool in FY2026-27.

Operative scope: what the ₹610 crore is meant to build

Budget commentary describes the Phase-1 Logistics and Trunk Infrastructure Project as covering several categories of works. Under Phase-1 of the Logistics and Trunk Infrastructure Project at Dholera SIR, the government will invest ₹610 crore, including funding from the Developed Gujarat Fund, and the project includes development of Dholera Airport infrastructure, modern road networks, water supply and wastewater treatment systems, underground power distribution, and smart ICT facilities. A separate write-up lists the intended components as enabling infrastructure for the Dholera International Airport alongside roads, utilities and drainage. The integrated infrastructure is intended to support future industries and innovation-driven enterprises, with the government projecting Dholera as a global industrial and employment hub.

As of February 2026, media reports do not specify a village-wise boundary, a fixed completion date, or a detailed per-component cost break-up for this ₹610 crore package; those operational details (tendering, contractor awards, exact stretches of road or pipeline) had not been separately notified at the time of the budget speech.

Why now: the semiconductor context

The budget explicitly linked this infrastructure spend to the region's growing electronics and chip-manufacturing base. The budget highlighted the emerging semiconductor manufacturing ecosystem at Dholera and Sanand, which the government said is positioning Gujarat prominently in global chip manufacturing and supporting India's push for semiconductor self-reliance, with authorities expecting the hubs to attract high-technology industries and skilled employment in electronics manufacturing. Industry commentary tied this to anchor projects already committed to the region: the semiconductor fabrication facility being developed by the Tata Group in partnership with PSMC is cited as contributing to the area's industrial ecosystem.

Parallel and complementary allocations in the same budget

The ₹610 crore trunk infrastructure line was announced alongside other budget items directly relevant to Dholera's industrial build-out. The budget complements parallel investments — including ₹1,100 crore under the Gujarat Semiconductor Policy and a planned ₹650 crore bulk water pipeline network — positioning Dholera as a critical node in Gujarat's semiconductor and advanced manufacturing strategy. The water allocation has a specified source: ₹650 crore proposed for a bulk water pipeline network, including a 100 MLD pipeline from Bhaskarpura village lake in Surendranagar district — critical for electronics and semiconductor manufacturing.

Governance: who implements this on the ground

The budget allocation flows through Gujarat's existing Dholera governance structure rather than creating a new authority. The Dholera Special Investment Region Development Authority (DSIRDA) is in charge of planning and development of DSIR and administering government land within DSIR, while a Special Purpose Vehicle (SPV) named Dholera Industrial City Development Limited (DICDL) has been created between the Central Government (NICDC Trust) and the State Government (DSIRDA) of Gujarat to implement the project. DICDL is the entity that has historically executed trunk-infrastructure contracts (roads, utilities, ICT) inside the region, and is the body expected to translate this budget line into tendered works.

Distinguishing this Phase-1 from the earlier 'Activation Area' Phase-1

Readers should note a naming overlap. Dholera SIR's original master plan already used "Phase I" to describe the first 22.54 sq km tranche of development built out between roughly 2012 and 2022. Development under Phase I (TP1 and TP2) covers 153 sq km, with development started in Phase I for initial development between 2012 and 2022, and that zone, commonly called the Activation Area, is separately reported as largely complete. The 22.54 sq km Activation Area is almost completed with trunk infrastructure in place. The ₹610 crore FY2026-27 allocation is for a differently scoped "Phase-1" — of the Logistics and Trunk Infrastructure Project specifically — and should not be read as re-funding the already-built Activation Area; the budget documents do not equate the two.

Practical effect for investors and residents

For plot owners, developers and industrial investors in and around Dholera SIR, the practical effect of this decision is a funding commitment, not yet a completed asset. It signals continued state-level financial backing for roads, water, wastewater, underground power and ICT works that are prerequisites for industrial plots to become plug-and-play, and reinforces Dholera's positioning within Gujarat's semiconductor strategy alongside Sanand. Industry commentary suggests the trunk infrastructure investment is seen as important for attracting large-scale semiconductor fabrication units, electronics manufacturing, aircraft manufacturing projects, and data centres, though actual execution timelines, tender awards and physical completion will need to be tracked separately as they are announced.