The Union Cabinet has greenlit the development of 12 Industrial Smart Cities under the National Industrial Corridor Development Programme. Additionally, the Cabinet has expanded the Agricultural Infrastructure Fund, launched three new railway projects, and allocated equity support for hydropower development in northeastern states, aiming to enhance infrastructure and create job opportunities.
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The Union Cabinet led by Prime Minister Narendra Modi has approved some major projects to boost infrastructure and employment opportunities in India. These projects span various sectors including industrial development, agriculture, railways, hydropower, and FM radio expansion, reflecting a comprehensive approach to national growth.
Union Minister Ashwini Vaishnaw highlighted the formation of 12 Industrial Smart Cities under the National Industrial Corridor Development Programme, aligning with the vision of “Viksit Bharat” (Developed India). These cities aim to strengthen India’s position in global value chains by providing ready-to-allot land for investors.
The key decisions are as follows:
12 Industrial Smart Cities: The Cabinet approved the development of 12 Industrial Smart Cities under the National Industrial Corridor Development Programme (NIDCP) with an outlay of Rs 28,602 crore. These cities will be established in 10 states, including Uttarakhand, Punjab, Maharashtra, Kerala, Uttar Pradesh, Bihar, Telangana, Andhra Pradesh, and Rajasthan.
The cities will be strategically located along six major industrial corridors, covering key areas like Khurpia, Rajpura-Patiala, Dighi, Palakkad, Agra, Prayagraj, Gaya, Zaheerabad, Orvakal, Kopparthy, and Jodhpur-Pali.
These hubs are expected to attract investments of up to Rs 1.5 lakh crore, creating 10 lakh direct and 30 lakh indirect employment opportunities, thereby cementing India’s role in global value chains.
Agri Infra Fund Expansion: The Cabinet has approved expansion of the Agricultural Infrastructure Fund (AIF) to enhance support for farmers and improve agricultural infrastructure. Key updates include:
- Viable Farming Assets: Expanding eligibility to cover the creation of community farming assets.
- Integrated Processing Projects: Including integrated primary and secondary processing projects in AIF activities, while standalone secondary projects will be managed by the Ministry of Food Processing Industries (MoFPI).
- PM KUSUM Component-A: Allowing integration with AIF to promote sustainable energy solutions alongside agricultural infrastructure development.
- NABSanrakshan: Extending credit guarantee coverage for Farmer Producer Organizations (FPOs) through NABSanrakshan Trustee Company Pvt. Ltd., aimed at enhancing financial security and encouraging investment in agricultural infrastructure projects.
Three New Railway Projects: The Cabinet announced two new railway lines and a multi-tracking project worth Rs 6,456 crore across Odisha, Jharkhand, West Bengal, and Chhattisgarh, extending the network by about 300 km. These projects will enhance logistical efficiency, increase line capacity, and provide direct connectivity to about 1,300 villages and 11 lakh people. The projests will include the construction of 14 new stations
The capacity augmentation is expected to handle an additional 45 Million Tonnes Per Annum (MTPA) of freight traffic, improving the transport of essential commodities like agricultural products, coal, and cement.
Hydropower Development in the Northeast: The Cabinet approved Rs 4,136 crore in equity support for hydropower development in the northeastern states. The grant, capped at 24% of the total project equity (maximum Rs 750 crore per project), will support viable hydroelectric projects by facilitating financial assistance and requiring states to adjust power tariffs and reimburse SGST to ensure project viability.
In a press release the government stated, “This scheme has an outlay of Rs. 4136 crore to be implemented from FY 2024-25 to FY 2031-32. A cumulative hydro capacity of about 15000 MW would be supported under the scheme. The scheme would be funded through 10% Gross Budgetary Support (GBS) for North Eastern Region from the total outlay of the Ministry of Power.”
FM Radio Expansion: The Cabinet approved the third batch of e-auctions for 730 FM radio channels in 234 new cities, with a reserve price of ₹784.87 crore, under the Private FM Radio Phase III Policy.
Additionally, an Annual License Fee (ALF) of 4% of Gross Revenue (excluding GST) will be implemented for these channels. This expansion is expected to create new jobs, promote local dialects and culture, and support ‘vocal for local’ initiatives.
