India is looking East to attract investments from countries such as Japan and Singapore for its industrial smart city project, an official has told Moneycontrol.
“We are vying for Singapore and Japan to collaborate with us on the project, urging firms to set up operations in industrial smart cities,” the official, who didn’t wish to be identified, said.
The development comes a few weeks after the government approved 12 industrial smart cities with an outlay of Rs 28,602 crore. These are in addition to eight cities announced earlier.
The government is scouting foreign companies that can set up operations in these smart cities. Under the plan, the government aims to create cutting-edge infrastructure that can be leveraged by companies to set up operations. This would, in turn, help the local ecosystem by generating commerce and employment opportunities in the specific region.
While discussions are in the early stages, the official said investment in each of the smart cities would depend on their viability from the countries’ perspectives.
The government is also looking at places like Switzerland to attract investment for these new centres.
As reported by Moneycontrol, the government plans to have the cities ready by 2027.
Besides attracting investment, the “focus would be on projects that can generate employment opportunities”, the official said.
The government estimates that industrial smart cities can generate three to five million jobs and around Rs 1.5 lakh crore in investment.
The eight smart cities have attracted Rs 1.7 lakh crore in investment until now.
“The creation of smart industrial smart cities will help cover the country like golden quadrilateral. We will consult with state governments to create multi-modal hubs. These projects will be like beads on a necklace,” trade minister Piyush Goyal said on August 28.
Industrial smart cities are being created using special purpose vehicles, with equal investment from states, in the form of land, and the Centre in terms of capital. They are also likely to have a small debt capital, with longer tenure, which can be repaid once the cities are operational.
The 12 newly approved smart cities include Gaya in Bihar, Jodhpur-Pali in Rajasthan, Agra in Uttar Pradesh and Palakkad in Kerala. These cities will be developed by the National Industrial Corridor Development Corporation under the department for promotion of industry and internal trade.
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