Industrial Development
NICDC Targets Construction Start on 11 of 12 New Industrial Smart Cities by End-2025
Infrastructure development work in 11 of the 12 planned industrial smart cities will commence by the end of 2025 and is targeted for completion within three years, according to the National Industrial Corridor Development Corporation. NICDC managing director and CEO Rajat Kumar Saini stated that Engineering Procurement and Construction (EPC) contractors have already been appointed for four parks, with contracts for four more due within 10-15 days, and construction will begin on eight parks by 30 November and on 11 by 31 December.
| Total Investment | Rs 28,602 crore across 12 industrial smart cities |
|---|---|
| Land Area | 26,000 acres across 10 states |
| Construction Timeline | 8 parks by 30 November 2025; 11 parks by 31 December 2025 |
| Project Completion | Within three years of commencement |
| Prayagraj IMC Size | 352 acres with investment potential of ₹1,600 crore |
| EPC Contractor Appointments | 4 parks already awarded; 4 more within 10-15 days |
| Expected Job Creation (UP) | Over 87,000 jobs in Agra and Prayagraj projects combined |
| Prayagraj Focus Sectors | E-mobility automobiles, food and beverages, leather products, ready-made garments, bicycle manufacturing, packaging |
What Was Announced
NICDC CEO Rajat Kumar Saini announced that contracts for Engineering Procurement and Construction have already been awarded for four parks, with four more to follow within 10–15 days. Construction on eight parks is scheduled to start by 30 November 2025, and on 11 parks by 31 December 2025. The work is targeted for completion within three years.
This announcement covers 11 of the 12 industrial smart cities that were approved by the Cabinet Committee on Economic Affairs. The Prayagraj Integrated Manufacturing Cluster is located 25 km south of Prayagraj, spans 352 acres with an investment potential of ₹1,600 crore.
The Bigger Programme
In August 2024, the Central government cleared the development of 12 industrial smart cities across 10 states, with an estimated investment of Rs 28,602 crore and a land area covering 26,000 acres. These industrial areas will be located in Khurpia in Uttarakhand, Rajpura-Patiala in Punjab, Dighi in Maharashtra, Palakkad in Kerala, Agra and Prayagraj in Uttar Pradesh, Gaya in Bihar, Zaheerabad in Telangana, Orvakal and Kopparthy in Andhra Pradesh and Jodhpur-Pali in Rajasthan.
The new industrial cities will be developed as greenfield smart cities of global standards, built ahead of demand on the 'plug-n-play' and 'walk-to-work' concepts.
Employment and Investment Impact
The smart cities are expected to generate significant employment opportunities, with an estimated one million direct jobs and up to three million indirect jobs being created through planned industrialization. In Uttar Pradesh, projects in Agra and Prayagraj are expected to generate over 87,000 jobs.
These projects are designed to attract substantial investments, with expectations of approximately Rs 1.52 trillion from both large anchor industries and MSMEs.
What Changes Now
The announcement moves these projects from the approval and contracting phase into active ground-level work. With four parks already having EPC contractors appointed and four more expected to be contracted within 10–15 days, construction machinery and site teams can begin mobilising to meet the announced November and December 2025 timelines.
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. This focus-sector specialisation means developers will now begin tailoring site infrastructure, utilities, and business facilities to attract these specific industries.
Next Steps
Immediate next steps include finalisation of EPC contracts for the remaining parks in the 10–15 day window. Construction on the first eight parks is set to begin by 30 November 2025, followed by all 11 parks by the end of December. Once ground work commences, infrastructure development—roads, utilities, industrial plots, and common facilities—will proceed on the three-year completion target.
Parallel to construction, land allotment based on clear land allotment policies and conducive fiscal and policy measures for investors, including MSMEs, with discounts for anchor/early-bird investors and lease premium payment flexibility, is expected to begin attracting anchor tenants and manufacturing clusters to pre-book space.
Development phases
Frequently asked questions
What is Prayagraj Industrial Smart City (IMC)?
The Integrated Manufacturing Cluster at Saraswati Hi-Tech City, located 25 km south of Prayagraj, spans 352 acres with an investment potential of ₹1,600 crore.
When will construction actually start?
Construction will begin on eight parks by 30 November 2025 and on 11 parks by 31 December 2025.
Which industries will be based in Prayagraj IMC?
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.
Who is managing this project?
The National Industrial Corridor Development Corporation (NICDC) is the nodal agency managing the programme.
How many jobs will be created in Prayagraj and Agra combined?
Over 87,000 jobs are expected to be generated in Agra and Prayagraj projects combined.
What is the total investment across all 12 cities?
Rs 28,602 crore has been approved for all 12 industrial smart cities.
Why is Prayagraj chosen for this project?
Prayagraj's 352-acre project is under the Amritsar Kolkata Industrial Corridor initiative, which uses major transportation corridors and connectivity infrastructure as backbone for industrial development.
Sources
- Work On 11 New Industrial Smart Cities To Begin By December 2025, Expected To Finish In Three Years: Report
- IMC Prayagraj Uttar Pradesh | NICDC
- Cabinet approves 12 Industrial nodes/cities under National Industrial Corridor Development Programme
- Union Cabinet approves 12 industrial smart cities worth Rs 28,602 crore
- India to get 12 new industrial smart cities, project is worth Rs 28,000 crore
- National Industrial Corridor Development Programme | NICDC