Project Announcement
Mahindra Lifespaces to develop Rs 2,000-crore integrated business city at Dholera SIR
Mahindra Lifespaces has signed a memorandum of understanding with the Gujarat Government to develop an integrated business city in the Mahindra World City format at Dholera Special Investment Region (SIR). The project, located along the Delhi-Mumbai Industrial Corridor 100 km south of Ahmedabad, represents a Rs 2,000-crore investment and replicates the developer's proven model from established operations in Chennai and Jaipur.
| Developer | Mahindra Lifespace Developers Limited (subsidiary of Mahindra Group) |
|---|---|
| Location | Dholera Special Investment Region, Ahmedabad district, Gujarat |
| Project Type | Integrated Business City – multi-product development combining industrial, commercial, social and residential infrastructure |
| Announced Investment | Rs 2,000 crore |
| Employment Potential | Over 100,000 persons when fully operational |
| Expected Investment Attraction | In excess of Rs 10,000 crore from third-party companies |
| Development Status | Announced (MoU signed); no construction start date, price band or possession timeline yet disclosed |
| Corridor Location | Delhi-Mumbai Industrial Corridor (DMIC), part of Dholera SIR spread across 920 sq km |
Project overview and strategic location
Mahindra Lifespaces has committed to develop an integrated business city in the Mahindra World City format at Dholera Special Investment Region (SIR), located in the Delhi Mumbai Industrial Corridor, with an investment of Rs 2,000 crore. Dholera SIR is located around 100 km south of Ahmedabad and 130 km away from Gandhinagar.
The region is poised to be a planned greenfield smart city spread over 920 sq km and divided into 12 zones and six sub-centers. The Ahmedabad–Dholera Expressway was inaugurated by Prime Minister Narendra Modi on 31 March 2026 and is part of the Delhi–Mumbai Industrial Corridor (DMIC).
Scale, scope and employment impact
The project can create employment for over 100,000 persons when fully operational and will attract investments in excess of Rs 10,000 crore. The business city will follow the Mahindra World City model, a responsible business model comprising industrial hubs located on high growth corridors and focused on economic growth and social development.
The development will combine industrial, commercial and social infrastructure within the integrated business city framework. This approach mirrors the structure of Mahindra World City, Jaipur, which is spread over an area of 3,000 acres and comprises a Multi-Product Special Economic Zone (SEZ), a Domestic Tariff Area (DTA) and Social & Residential Infrastructure Zone.
Regional infrastructure context and upcoming connectivity
Dholera SIR is being developed as a cluster within one of India's most ambitious industrial corridors. Land area has been allotted for non-polluting industries and a special education zone, besides dedicated areas for public utility, recreation, IT and knowledge centers, logistics, sports activity, and a city center.
Dholera International Airport is a greenfield airport project under construction, with commissioning/operations targeted for 2026. Construction of the airport could be completed by December 2025 and will support the logistics requirements of the Dholera SIR industrial township. A ₹60 billion Mass Rapid Transit System (MRTS) will run parallel to the expressway and have seventy stations.
DICDL's 2024 report confirms 95% completion of core activation areas, with firms like Tata Power Solar, ReNew Power, and Hitachi Hi-Rel already allotted plots. Tata Electronics plans to roll out its first semiconductors from its plant in Dholera in December 2026.
Project status and next steps
As of September 2026, the project remains in the announced phase following the MoU between Mahindra Lifespaces and the Gujarat Government. No construction timeline, price band, unit configurations, or detailed possession schedule has been publicly disclosed. Mahindra Lifespaces has not issued an update on ground-breaking or detailed site plans since the announcement.
Investors and prospective users should monitor official announcements from Mahindra Lifespaces for project commencement timelines and detailed specifications. The project's development will likely depend on activation of surrounding Dholera SIR infrastructure and anchor tenant commitments.
Frequently asked questions
What is the difference between Mahindra World City and other real-estate projects in Dholera?
Mahindra World City is an integrated business city model combining industrial special economic zones, domestic tariff areas, commercial space, and social/residential infrastructure in one planned ecosystem. Unlike standalone residential or commercial projects, it functions as a self-contained economic cluster similar to Mahindra's operational projects in Chennai and Jaipur.
When will construction on Mahindra World City Dholera start?
No construction start date has been announced. The project is currently in the MoU (memorandum of understanding) stage with the Gujarat Government. Typically, detailed planning, land acquisition finalization, and regulatory approvals precede commencement of physical work.
What is the land area being developed for Mahindra World City Dholera?
Specific land area allocated to the Mahindra World City project within Dholera SIR has not been publicly disclosed. Dholera SIR itself spans 920 sq km, but the size of Mahindra's individual allocation remains unspecified.
Will there be residential units in Mahindra World City Dholera?
Mahindra World City projects historically include social and residential infrastructure zones. However, the Dholera project's specific residential configuration, unit types, price band, and availability details have not been announced.
How does Dholera SIR's infrastructure support this project?
Infrastructure like water treatment plant, effluent treatment plant, sewage treatment plant and a 72 km road network is almost ready. The Ahmedabad–Dholera Expressway was inaugurated on 31 March 2026. An international airport is targeted for operations in 2026, along with planned metro rail connectivity.
What is the expected timeline for full operations?
No completion or full operational timeline has been announced. Mahindra World City projects typically take 10–15+ years to reach full operational capacity. The Dholera project timeline depends on construction commencement and phased rollout.