State Support Agreement for IMC Prayagraj Executed (8 November 2024)

What was decided

The Amritsar-Kolkata Industrial Corridor (AKIC) programme took a formal step forward on 8 November 2024 with the signing of a State Support Agreement (SSA) and a companion Shareholder Agreement (SHA) for the Integrated Manufacturing Cluster (IMC) Prayagraj. These agreements were signed between the National Industrial Corridor Development Corporation (NICDC), the Government of Uttar Pradesh, and the Uttar Pradesh State Industrial Development Authority (UPSIDA), underscoring the Government of India's commitment to developing the Integrated Manufacturing Clusters in Agra and Prayagraj. Internal NICDC records confirm the Shareholder Agreement between UPSIDA and NICDIT for IMC Prayagraj, and the State Support Agreement between the Government of Uttar Pradesh, UPSIDA and NICDIT for IMC Prayagraj, were both executed on 8 November 2024.

Who signed, and in what capacity

The agreements were officially signed by Rajat Kumar Saini, CEO & MD of NICDC, and Mayur Maheshwari, CEO of UPSIDA, establishing a framework for the development of these industrial clusters as strategic hubs in Uttar Pradesh under the AKIC initiative. The SSA binds the state government and UPSIDA to provide land, statutory clearances and infrastructure support; the parallel SHA sets the equity and governance terms of the joint project company.

Background: NICDIT recommendation and CCEA approval

The SSA/SHA signing did not happen in isolation — it followed two prior Central government steps. The project proposal was recommended by NICDIT during a meeting held on 8 July 2024, and CCEA approval followed shortly after. These clearances made IMC Prayagraj eligible for Central government equity participation and trunk-infrastructure funding, with the SSA/SHA then operationalising that approval into a binding tri-partite legal instrument.

Operative details: location, area, sectors and connectivity

The Integrated Manufacturing Cluster (IMC) at Saraswati Hi-Tech City, located 25 km south of Prayagraj, spans 352 acres with an investment potential of ₹1,600 crore. The Prayagraj cluster, covering 352 acres, is designed to focus on sectors including e-mobility, food processing, leather, garments, cycle manufacturing and packaging, with projected investments of approximately ₹1,600 crore aimed at promoting economic expansion and sectoral diversification in the region.

The site has connectivity to NH-35, NH-30 and rail/EDFC links, with the New Karchana EDFC Station 7 km away and Prayagraj Airport 24 km away.

Practical effect: land transfer, equity release and the project SPV

The SSA is the legal precondition for two operational steps: transfer of project land by the state to the joint-venture SPV, and release of matching Central equity by NICDIT. As of the latest reporting period, 351.43 acres of land had been transferred to the Project SPV by the state government, with matching equity amounting to ₹323.09 crore released by NICDIT to the SPV. Four industrial plots totalling 42 acres have been allotted to investors.

The project is implemented through a dedicated company. AKIC Integrated Manufacturing Cluster Agra Prayagraj Limited was incorporated on 30 January 2025, with its registered office at the UPSIDA Complex, A-14 Lakhanpur Bima Vihar, Kanpur Nagar, Uttar Pradesh. This single SPV covers both the Agra and Prayagraj clusters under the AKIC framework.

What followed the SSA — clearances and construction milestones

• The State Environment Impact Assessment Authority (SEIAA), Uttar Pradesh, granted Environmental Clearance on 10 March 2025.
• The project was reviewed by the Prime Minister during the 49th Pragati Meeting on 24 September 2025.
• A Letter of Award (LoA) was issued by the SPV to the EPC contractor, M/s RCC Developers Pvt Ltd, on 27 October 2025.
• A kick-off meeting with the EPC contractor was held on 11 February 2026.

These milestones mark the shift from agreement/notification stage to physical trunk-infrastructure works on the ground — a sequence that could not begin until the SSA had legally enabled land transfer and equity release.

Why this decision matters for investors and land-owners

For investors, the SSA is the point after which plot allotment inside IMC Prayagraj becomes contractually possible — plots are now being allotted to industrial investors under the SPV's authority. For land-owners and residents in the Saraswati Hi-Tech City area, the agreement confirms that the state has committed the specific 352-acre parcel to industrial development, with the 351.43-acre figure representing the portion actually transferred to the SPV so far. Readers should treat "352 acres" as the notified/planned cluster size and "351.43 acres" as the operational, transferred figure as of the most recent NICDC progress report.