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Decision Record

NICDC SPV Awards EPC Contract for Khurpia Industrial Smart City to Raj Shyama Constructions

On 16 December 2025, the project Special Purpose Vehicle for Khurpia Industrial Manufacturing Cluster (IMC) issued a Letter of Award for the EPC trunk-infrastructure contract to M/s Raj Shyama Constructions Pvt. Ltd., formally selecting the builder for the 1,002-acre industrial township near Kichha, Uttarakhand.

Khurpia Industrial Smart City — NICDC SPV Awards EPC Contract for Khurpia Industrial Smart City to Raj Shyama Constructions
DecisionLetter of Award (LoA) for EPC contract issued to M/s Raj Shyama Constructions Pvt. Ltd.
Date of award16 December 2025
Awarding bodyNICDC Uttarakhand Industrial Township Limited (Project SPV)
Tender floated2nd call, 18 October 2025
Project area1,002 acres at Khurpia, Kichha tehsil, Udham Singh Nagar
Project cost₹1,265 crore capital cost; ₹6,180 crore investment potential
Land transferred to SPV so far500 acres, with matching equity of ₹207.09 crore released by NICDIT
Contract Agreement signed20 March 2026
Environmental ClearanceGranted by SEIAA Uttarakhand on 9 March 2023

What was decided

According to the NICDC Delivery Monitoring Unit (DMU) report, the 2nd call EPC tender was floated on 18th Oct, 2025 and LoA issued by SPV to M/s Raj Shyama Constructions Pvt. Ltd. on 16th December 2025. This Letter of Award formally selected the contractor responsible for building the trunk infrastructure of the Khurpia Integrated Manufacturing Cluster (IMC), also referred to in project documents as IMC Khurpia or Kichha IMC.

Who decided, and under what mandate

The decision was taken by the project-specific SPV, NICDC Uttarakhand Industrial Township Limited, SPV was incorporated 21st October, 2022. The SPV operates under the framework set out when the SSA/SHA for the project has been executed on 30th April, 2022 and approved by NICDIT on 14th July, 2021, and after the project proposal has been recommended by NICDIT during the meeting held on 8th June, 2022. Final Cabinet-level clearance came later, with the Uttarakhand DMU record noting CCEA approval received on 28th Aug, 2024.

Tender background

Bidding for the EPC contractor did not succeed on the first attempt. DMU tracking from mid-2025 shows Tender for onboarding of EPCC floated on 16th Jul, 2025, before the process was re-floated: 2nd call EPC tender floated on 18th Oct, 2025, which resulted in the LoA to Raj Shyama Constructions. A separate corrigendum record confirms the tender was formally numbered Corrigendum-1 of Tender No-06/NUITL/2025, IMC Khurpia under AKIC of EPC Basis.

Scope of the awarded EPC contract

The bidding document for the contract describes the scope as Construction of Trunk Infrastructure On EPC mode for IMC Khurpia under AKIC, comprising Component A: Roads, Civil work, Wet Utilities, Power Civil Works & HT line realignment, ICT ducts & access chambers, Component B: CETP & STP, Component C: Power Infrastructure – 3 nos. 33kV Substation and 1 nos 11 kV Substation.

The internal road network alone runs to a total length of roads is about 24.11 km, built across multiple rights-of-way. Per the tender documents, the Right of Way (RoW) of proposed roads is 60m, 45 m, 30 m, 24 m, 18 m and 7 m, with a 60 m RoW arterial road about 1 km proposed as the external road connection to Khurpia IMC from the Kichha bypass road access point 2 and a 45 m RoW arterial road proposed to be the spine of the IMC, running through the site from south to north.

Operative details: area, boundaries, cost

The site sits across Village Khurpia, Bandiya, Deoria, Gauri Kalan & Bhooragauri at Kichha sub district of Udham Singh Nagar district, Uttarakhand, on a total footprint where total area of the site is 1002 acre; capital cost of the project is 1265.37 crore. Separately, official NICDC project pages put the figure at a 1,002-acre Integrated Manufacturing Cluster under the Amritsar Kolkata Industrial Corridor (AKIC), with a project cost of ₹1,265 crore and an investment potential of ₹6,180 crore.

Environmental clearance documentation notes the site's eastern boundary: River Beni forms the eastern boundary of the site and gets connected with river Gaula / Kichha towards south of site near Kichha town, while Paha canal traverses through the north of the site.

Practical effect: what happens next on the ground

Following the LoA, project milestones moved quickly according to the DMU report. A 500-acre land transferred by State govt. to Project SPV and matching equity amounting to Rs. 207.09 Crore has been released by NICDIT to Project SPV. This was followed by a formal kick-off: Kick-off meeting was held on 10th March 2026 under the chairmanship of CEO & MD, NICDC at SIIDCUL Office, Dehradun, and Contract Agreement executed on 20th Mar 2026 between SPV and EPCC M/s Raj Shyama Constructions Pvt. Ltd.

A design workshop followed shortly after: Design Workshop held under the chairmanship of GM - SIIDCUL at SIIDCUL Office, Dehradun on 01st Apr 2026. As of the latest DMU update, Site establishment, Clearing & grubbing, design & drawings, Site survey work in progress — meaning physical construction has not yet visibly started; groundwork and design finalisation are underway.

Regulatory and approval trail behind the award

The EPC award sits at the end of a multi-year regulatory sequence. EC for the project has been granted by SEIAA, Uttarakhand on 9th March, 2023, and an ADB appraisal document confirms this clearance covered IMC at Khurpia Farms, Uttarakhand – in progress at time of project appraisal, EC was then granted on 9 March 2023 for automobile and engineering use. This followed the site's classification as a mid-sized township: the proposed IMC covers an area of 410.10 ha which is <500 Ha and having Mixed use Built-up area of 16,60,000 sq.mt, hence, as per the EIA notification, 2006 and its amendments, the proposed project falls under 8 (b) Townships and Area Development projects, Category B1.

Who is the contractor

M/s Raj Shyama Constructions Pvt. Ltd. is described in corporate records as a construction company that provides designing, building, and maintaining roads and highways, and it also offers construction of substation, electrification, testing and commissioning of the transformers, HT/LT Panels, and bus ducts and rising mains. The firm has separately been engaged on national highway EPC works, including a 4-laning package on NH-907 in Haryana.

Where this fits in the wider programme

Khurpia is one of twelve greenfield industrial cities cleared under the National Industrial Corridor Development Programme. A February 2026 Ministry update noted that as of January 2026, a total of 08 cities were successfully awarded EPC contracts for the construction of internal trunk infrastructure works, with two more projects reaching similar stages shortly after — placing the Khurpia award within a broader wave of contractor appointments across the programme's twelve nodes, which also include Rajpura-Patiala, Hisar, Agra, Prayagraj, and Gaya, as well as industrial areas in Dighi Port, Palakkad, Jodhpur Pali Marwar, Orvakal, Kopparthy, and Zaheerabad.

Frequently asked questions

What exactly was decided on 16 December 2025?

The project SPV, NICDC Uttarakhand Industrial Township Limited, issued a Letter of Award for the EPC (trunk infrastructure) contract for Khurpia IMC to M/s Raj Shyama Constructions Pvt. Ltd., following a second-call tender floated on 18 October 2025.

Is this the same as construction starting?

No. The LoA is the formal selection of the contractor. Physical works followed later: a kick-off meeting on 10 March 2026, contract agreement signed 20 March 2026, and a design workshop on 1 April 2026, with site establishment and survey work reported as in progress as of the latest DMU update.

What does the EPC contract cover?

It covers roads, civil works, wet utilities, power civil works and HT line realignment, ICT ducts and access chambers (Component A), a Common Effluent Treatment Plant and Sewage Treatment Plant (Component B), and power infrastructure including three 33kV substations and one 11kV substation (Component C).

How much land and funding has moved so far?

As of the latest report, 500 acres out of the 1,002-acre project area had been transferred by the State government to the SPV, with matching equity of ₹207.09 crore released by NICDIT to the SPV.

What is the total project cost and expected investment?

The capital/project cost for building the IMC is put at approximately ₹1,265 crore, while the investment potential once industries are established is estimated at ₹6,180 crore, with a projected employment potential of over 75,000 jobs.

Why did it take two tender rounds to award the EPC contract?

DMU records show an EPC tender was first floated on 16 July 2025, but the award ultimately came from a second-call tender floated on 18 October 2025, which led to the 16 December 2025 Letter of Award.

When did environmental clearance come through for Khurpia IMC?

The State Environment Impact Assessment Authority (SEIAA), Uttarakhand granted Environmental Clearance for the project on 9 March 2023, covering automobile and engineering-sector use.

Sources

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