Budget 2024: Govt to set up 'plug and play' industrial parks in 100 cities

12 industrial parks to be 'sanctioned' under the National Industrial Corridor Development Programme, says Finance Minister

The government will develop “plug and play” industrial parks in 100 cities across the country, partnering with states and private companies for the work, said Finance Minister Nirmala Sitharaman in her Budget speech on Tuesday.

She also announced that 12 industrial parks will be “sanctioned” under the National Industrial Corridor Development Programme. "Our government will facilitate development of investment-ready “plug and play” industrial parks with complete infrastructure in or near 100 cities, in partnership with the states and private sector, by better using town planning schemes," she said.

"Together with states and the private sector, this pioneering step has the potential to transform both industrial development and urban planning in a big way. …these projects are going to serve as vibrant economic centres that drive development as well as innovation poised to create a lasting impact,” said Rajesh Jaggi, vice-chairman, real estate, Everstone Group, which backs Indospace, an industrial and logistics park developer.

 

“The announcement for setting up 12 new industrial parks will boost the manufacturing sector and encourage new entrants to get easy entry into the space with much-needed financial support. It will also enhance employment opportunities and enable the banking sector to participate while financing the working capital needs,” said Manoj Purohit, partner and leader at BDO India.

"By providing comprehensive infrastructure and fostering collaboration between states and the private sector, this plan will attract investments, create jobs, and spur economic activity. Additionally, the sanctioning of twelve industrial parks under the National Industrial Corridor Development Programme will enhance our manufacturing capabilities and export potential,” said Shashi Kiran Shetty, chairman and founder of Allcargo Group.

Large conglomerates already operate in the industrial park segment. Reliance Industries is setting up such parks in Haryana and near Mumbai. In June, the company announced plans to develop an integrated industrial hub in Navi Mumbai after securing subleases on 3,750 acres of land for Rs 13,400 crore. Mahindra and Mahindra runs an industrial park near Chennai called Mahindra World City.

Sanjay Tolia, partner at Price Waterhouse & Co, said the Budget proposal to set up plug-and-play industrial parks in 100 cities sets a path for sustainable growth.