The Central government had sanctioned 12 new industrial smart city projects under the National Industrial Corridor Development Program with a total project cost of Rs 28,602 crore, including land expenses in August, 2024. The announcement, made by Union Commerce and Industry Minister Piyush Goyal in the Rajya Sabha, details plans to develop trunk infrastructure packages within 36-48 months of appointing EPC contractors.

Under the approved framework, state governments provide land while the National Industrial Corridor Development and Implementation Trust (NICDIT) provides equity for trunk infrastructure development. Each industrial city or node is managed by a special purpose vehicle (SPV), which may involve private-sector participation. SPVs can employ innovative funding mechanisms, such as user fees, pricing models, and public-private partnerships (PPPs). Additionally, state governments can explore bi-lateral and multi-lateral funding opportunities.

The industrial smart cities are designed to support various focus sectors, tailored based on market demand assessments. These include heavy engineering, automotive manufacturing, pharmaceuticals, biotechnology, IT & ITES, electronics, food processing, aerospace, nanotechnology, optoelectronics, and semiconductors. The initiative aligns with India's goal to establish robust industrial ecosystems, leveraging advanced technologies and strategic funding models.