Ayodhya rapidly emerging as global investment destination

Ayodhya is on the cusp of a monumental economic transformation with the infusion of a record-breaking investment of Rs 75,000 crore by British conglomerate Trafalgar Square Capital. This colossal investment is set to establish cutting-edge defence manufacturing units in Ayodhya, marking the largest-ever investment in a single district in India.

The decision was formalised through the signing of five Memorandums of Understanding (MoUs) between Trafalgar Square Capital and local authorities, solidifying Ayodhya's position as a global destination for industrial development.

Trafalgar Square Capital is one of the major multinational companies expressing substantial interest in Uttar Pradesh under the Foreign Direct Investment (FDI) policy. The esteemed list also includes Hong Kong-based Taushan International Group, RG Group, Austin Consulting Group, Cosis Group, Indo European Chamber of Small and Medium Enterprises, ABC Cleantech, and Unicorn Energy from Germany.

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The strategic choice of Ayodhya as the site for this ambitious venture is expected to have a profound impact on the economic landscape of the region. The groundbreaking Rs 75,000 crore investment in defence manufacturing units is a testament to Ayodhya's emergence as a key player in the industrial sector and a magnet for global investors.

According to Uttar Pradesh's Industry Minister, Nand Gopal Nandi, “This monumental investment by Trafalgar Square Capital is a game-changer for Ayodhya and the entire state. It underscores the investor confidence in Uttar Pradesh's business-friendly policies and strategic vision for industrial growth."

Mr. Nandi emphasised that this investment aligns with the state's commitment to fostering a robust business environment and creating employment opportunities. “Ayodhya is not just a cultural and religious centre but is now becoming an economic powerhouse, attracting major players on the global stage," he added.

Germany's Unicorn Energy is also poised to make significant investments in Uttar Pradesh, with plans to venture into Lucknow and Jaunpur with two solar energy projects valued at approximately Rs 42,000 crore. These initiatives are projected to create around 2,200 job opportunities, further contributing to the state's economic growth.

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Adding to the surge in solar energy investments, the GMR Group has inked an MoU worth Rs 40,000 crore for solar energy projects, with the specific location yet to be determined.

The Aditya Birla Group is set to inject Rs 25,000 crore into the state's economy by establishing a large textile and readymade unit, promising significant contributions to the local manufacturing sector.

In another significant development, the Hinduja Group has pledged Rs 25,000 crore for ventures in the film, media, and solar energy sectors, building on an earlier agreement with Ashok Leyland for electric vehicle production. The locations for these investments are yet to be finalised.

The National Thermal Power Corporation (NTPC) has also made substantial strides by signing six MoUs, directing Rs 74,000 crore towards solar power and energy projects in Jhansi, Sonbhadra, and Prayagraj. This marks a significant step in expanding the renewable energy portfolio in the state.

Ayodhya's development gathers momentum 

Ayodhya, a city steeped in rich cultural and religious heritage, is not just witnessing the construction of the historic Ram Temple; it is also undergoing a significant facelift with several mega-development projects. Regional Tourism Officer RP Yadav shed light on these endeavours, which promise to transform Ayodhya into a modern and thriving urban centre.

One of the prominent initiatives in progress is the Uttar Pradesh Housing and Development Board's creation of a new township spanning 1,200 acres. This expansive project encompasses a power station, a passenger convenience centre, multilevel parking facilities, and multiple hotels. “The work on all these projects is in its final stages, bringing us closer to the realisation of a modern and well-equipped urban space,” said Yadav.

Ayodhya's skyline is set to change with the approval of 30 large hotels, of which three have already commenced operations. The remaining hotels are undergoing construction, and the ambitious goal is to have 400 new hotels in Ayodhya. Notably, the renowned Taj Group has expressed interest in establishing a 5-star hotel in the city, adding a touch of luxury to the emerging landscape.

The ripple effect of this development surge is evident in the real estate market, where land rates have experienced a remarkable surge. Following the Bhoomipujan of the Ram Temple in 2020, land prices in Ayodhya have skyrocketed, increasing 12 to 20 times. The Stamp and Registration Department of Ayodhya reports that the cost of 1,350 square feet of land around Chaudah Kosi Parikrama has surged from Rs 4 lakh to approximately Rs 65 lakh.

This trend extends to vacant lands near key areas such as Ram Janmabhoomi Path, Bhakti Path, and Rampath Corridor. Notably, the proximity to the temple is directly proportional to the escalated value of the land. The surge in land prices is indicative of the city's growing prominence and the anticipation of increased economic activities.

Major Development Projects in Ayodhya:

Ayodhya Dham Station (Phase-1): Rs 241 crore

Spine Road till Nayaghat: Rs 845 crore

Rajarshi Dashrath Autonomous State Medical College: Rs 245 crore

Rail Overbridge: Rs 68.04 crore

Maharishi Balmiki Airport: Rs 1,463 crore

Ram ki Pauri: Rs 105.65 crore