Gaya Industrial Smart City (IMC Gaya): CCEA Approval Under NICDP — Decision Record

The Decision

India will soon wear a grand necklace of Industrial Smart Cities as in a landmark decision, the Cabinet Committee on Economic Affairs chaired by the Prime Minister Shri Narendra Modi approved 12 new project proposals under the National Industrial Corridor Development Programme (NICDP) with an estimated investment of Rs. 28,602 crore. Spanning across 10 states and strategically planned along 6 major corridors, these projects represent a significant leap forward in India's quest to enhance its manufacturing capabilities and economic growth.

The 12 locations approved were Khurpia in Uttarakhand, Gaya in Bihar, Rajpura-Patiala in Punjab, Zaheerabad in Telangana, Dighi in Maharashtra, Orvakal and Kopparthy in Andhra Pradesh, Palakkad in Kerala, Jodhpur-Pali in Rajasthan, and Agra and Prayagraj in Uttar Pradesh. NICDP is expected to generate significant employment opportunities, with an estimated 1 million direct jobs and upto 3 million indirect jobs being created through planned industrialization, contributing to the socio-economic upliftment of the regions where these projects are being implemented.

At the time of this sanction, NICDP had already seen the completion of four projects, with another four currently under implementation. The Gaya decision therefore added the Bihar node to a programme that was already partly operational elsewhere in the country.

Where Gaya Fits: The AKIC Node

The Gaya project approved under this Cabinet decision is formally the Integrated Manufacturing Cluster (IMC) Gaya. It is a node under the Amritsar-Kolkata Industrial Corridor (AKIC), for which the State Support Agreement (SSA) and Shareholder Agreement (SHA) were signed by the Government of Bihar, the National Industrial Corridor Development Corporation (NICDC), and the Bihar Industrial Area Development Authority (BIADA). Those agreements — the contractual follow-through on the Cabinet's approval — were signed in November 2024.

In line with the government's 'Vikas bhi, Virasat bhi' (development along with heritage) vision, the project is positioned to drive economic growth while enhancing the cultural legacy of Gaya, a renowned destination for international pilgrimage and heritage tourism.

Operative Details: Site, Boundaries and Villages

Environmental clearance covers the 'Development of Integrated Manufacturing Cluster (IMC) of 675.93 Ha (1670.22 Acres) at Gaya, Gaya District, Bihar by M/s Bihar Industrial Area Development Authority.' The IMC site falls across 13 revenue villages — Gamhariya, Kishoriya, Gangi, Mangruchak, Bariya, Lembogara, Gazichak, Kharanti, Sugasot, Masaundha, Babhavandev, Banvasi and Invorva — in Dobhi block of the Sherghati subdivision of Gaya district.

The geo-coordinates of the project site fall between Latitude 24°25'52" N to 24°29'33" N and Longitude 84°52'13" E to 84°55'04" E. IMC Gaya will span 1,670 acres and is situated 39 kilometers south of Gaya International Airport.

On sectors targeted at the site: building materials, agri-food processing, leather goods, ready-made clothing, furniture, handloom and handicrafts, engineering & fabrications, and medical equipment are among the businesses IMC Gaya is designed to draw in.

Land Acquisition and Compensation

The state government delineated 1,670 acres of land for the project, of which 1,652 acres are under the possession of the Industries Department; the revenue department handed over private land in September 2023, and the State Cabinet transferred government land in January 2024. The balance 18 acres of land was, as of the relevant filing, still being acquired.

Compensation of settlements is being paid after verification of legal ownership of land, and about 33 settlements were found within the project site. Resettlement and rehabilitation is being carried out as per the RFCTLARR 2013 policy. Separately, an indianmasterminds.com report citing state figures put the land acquisition cost at ₹462.14 crore, within a total project cost of ₹1,339 crore (as of June 2025).

Environmental Clearance and Follow-Through Milestones

The project received Cabinet Committee on Economic Affairs approval on 28 August 2024, while environmental clearance was granted on 18 March 2025 by the Ministry of Environment, Forest and Climate Change. A Special Purpose Vehicle, Bihar Integrated Manufacturing City Gaya Ltd (BIMCGL), was incorporated on 6 January 2025 to manage project implementation. The state cabinet declared the site an industrial area and granted a stamp duty exemption in March 2025.

As of June 2025, the Chief Secretary reviewed project progress and instructed that agency selection be finalised by March 2026, with the Engineering, Procurement and Construction (EPC) tender expected to be floated in the first week of July 2025.

Infrastructure and Connectivity Committed

The cluster will support industrial operations and workforce needs with a skill development centre, fire station, administrative office, parking, and commercial space, in addition to a 29.89 km internal road network, 220/33 KV and 33/11 KV electrical substations, 162 MVA assured power supply, and a 19 MLD water supply system. The water source will be a hybrid of surface and groundwater — surface water met through the Ganga Water Lift Scheme during operation, with groundwater used initially via tube wells.

The site benefits from proximity to major transportation networks including NH-19 and NH-22, and key rail connections such as Gaya Junction and the planned New Paharpur Railway Station. It is also strategically linked to the Eastern Dedicated Freight Corridor (EDFC), a key railway route for cargo transport. The state government has separately approved a 7-km greenfield road project costing ₹142 crore to connect the IMC site to the Golden Quadrilateral (NH-19/GT Road).

Land Use and Scale

Of the 1,670-acre IMC footprint, over 1,000 acres have been set aside for industrial use, with the remainder allocated to roads, utilities, commercial space and support infrastructure described above. A detailed plot-level land-use split (residential/commercial percentages) has not been published as of this writing.

Practical Effect

For investors, the Cabinet's approval and the subsequent SSA/SHA and environmental clearance mean the Gaya IMC has moved from a national policy announcement to a site with a defined boundary, acquired land, and a dedicated implementing SPV (BIMCGL). The NICDP model is intended to provide developed land parcels ready for immediate allotment, making it easier for domestic and international investors to set up manufacturing units. Actual plot allotment, however, depends on completion of the EPC-built infrastructure, for which tendering was underway in mid-2025.

For residents of the 13 affected villages in Dobhi block, the practical effect is land transfer and compensation under the RFCTLARR 2013 framework, alongside the prospect of local employment once construction and subsequent industrial operations begin.