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Explained | What is the 'New Noida' logistics and industrial hub plan and why does it matter?

Real estate experts say that setting up an investment region close to the Delhi-Mumbai Industrial corridor is a move in the right direction but may take 20-25 years to develop fully

More than four decades after the New Okhla Industrial Development Authority, or Noida as we know it, was set up as a satellite city of Delhi, a logistics and industry hub, to be called New Noida, is being planned close to the Delhi-Mumbai Industrial Corridor (DMIC).

The Noida authority recently signed an agreement with the Delhi-based School of Planning and Architecture (SPA) to design the master plan, which is expected to be ready within a year.

“We are at a very initial phase. We have just nominated the School of Planning and Architecture for preparing the master plan and it will take at least a year to prepare and approve it,” Noida Authority CEO Ritu Maheshwari, CEO, told Moneycontrol.

New Noida township will be a logistics and an industrial hub due to its proximity to the Delhi-Mumbai Industrial Corridor.

DMIC, which will connect the national capital with the country’s financial hub, is an ambitious infrastructure project of the government.


The corridor traverses eight states and two union territories, stretching about 436,485 square km, accounting for almost 14 percent of India’s area India.

A dedicated freight corridor (DFC) being developed by the Indian Railways for transporting goods is a vital part of the industrial corridor.  DFC is being constructed along two corridors spanning 3,300 km.

The Eastern DFC that connects Ludhiana in Punjab to Dankuni in West Bengal will pass through Punjab, Haryana, Uttar Pradesh, Bihar and Jharkhand.

The Western DFC will run from Haryana’s Dadri in the National Capital Region and pass through Haryana, Rajasthan and Gujarat to Mumbai in Maharashtra.

The Dadri-Noida-Ghaziabad Investment Region is part of the western freight corridor.

The entire region is being developed as a global manufacturing and investment destination, making use of the 1,483-kilometre high-capacity Western DFC. The plan is to develop new logistics hubs, manufacturing cities and residential townships along the DFC.

The expanse

The New Noida township is expected to be spread across 20,900 hectares and encompass 80 villages of which 20 are in Gautam Budh Nagar and 60 in Bulandshahr districts of Uttar Pradesh.

It is likely to include areas close to the freight corridor such as Dadri, Sikandrabad and parts of Khurja.

Most of the investments will be through the private sector, Maheshwari said. “SPA will be presenting a model which is financially sustainable,” she said.

As for land acquisition, she said modern urban land acquisition procedures would be studied and land pooling “could be there but that would form a small portion ratio of what land we are going to acquire or purchase”.

“All these things will be worked out at a later stage but broadly we are not keen to acquire land,” Maheshwari said. The Master Plan would be based on the type of activities planned for the area. Different zones would be earmarked for separate activities and private developers can develop it, she said.

“We will be more into the regulatory and the map approval part. Projecting the investments at this stage is not possible,” she told Moneycontrol in an exclusive interview.

SPA director PSN Rao told Moneycontrol that a market analysis would be done before preparing the master plan.  “The idea is to develop it as a major investment region, attract industries and generate employment,” he said.

SPA would look at other industrial estates, the requirements of industries and also hold discussions with industry bodies CII and FICCI, he said.

“After a thorough analysis of the potential for this region, we will decide on the plot sizes and go into the physical planning of the area—train, metro connectivity etc, and also the extent to which land can be allocated for providing housing to industrial workers,” he said.

The choice of businesses would depend on the demand in the area–power-intensive industries, IT companies, services-oriented or automobile firms–all would depend on the outcome of basic studies and market sentiment, Rao said.

Other projects such as the Manesar-Bawal Investment Region would also be studied, he said. “The master plan may take about a year to complete,” Rao said.

Impact on the property market

The development of the area would definitely have an impact on the property prices. This would be akin to developments in and around the Manesar-Bawal Investment Region or the Aurangabad Industrial city. “Having said that, this area would have its own unique character depending on demand,” Rao said.

“This is a move in the right direction but a long-term play,” said Mudassir Zaidi, Executive Director–North, Knight Frank India. It took almost 20-25 years to develop the Manesar-Bawal Investment region.

DMIC has been envisaged as a dedicated industrial corridor. The idea is to create nodes for warehousing, freight, manufacturing, etc.

“Once the master plan is ready, Indian business houses planning to expand their reach and possibly wanting to set up offices close to the upcoming Jewar airport, foreign direct investors, may be interested in investing in this region. It is also expected to impact property prices in the nearby areas,” Zaidi said.
Vandana Ramnani
first published: Jul 20, 2021 02:34 pm

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