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Dholera SIR: India’s Flagship Smart City and Investment Hub

Dholera Special Investment Region (SIR), located approximately 100 km southwest of Ahmedabad in Gujarat’s Ahmedabad district, is emerging as India’s premier greenfield smart city and a global hub for manufacturing and trade. Spanning over 920 square kilometers, Dholera SIR is a cornerstone of the Delhi-Mumbai Industrial Corridor (DMIC), a collaborative initiative between the Governments of India and Japan aimed at fostering industrial growth and economic resurgence. Envisioned to be larger than Singapore and six times the size of Shanghai, Dholera is designed to redefine urban development with world-class infrastructure, sustainable planning, and a business-friendly environment.

Strategic Location and Connectivity

Dholera’s strategic positioning in the Gulf of Khambhat enhances its appeal as a global investment destination. The region is well-connected to major industrial cities like Ahmedabad, Vadodara, Rajkot, and Bhavnagar, with seamless access to trade gateways. Key connectivity features include:

  • Road Infrastructure: National Highway 8 links Dholera to Ahmedabad, Bhavnagar, and Mumbai, while a 250-meter-wide, 10-lane Central Spine Expressway and a six-lane access-controlled expressway connect Dholera to Ahmedabad.
  • Rail Network: A high-speed metro rail project is under development to link Dholera with Ahmedabad and Gandhinagar, complemented by the Delhi-Mumbai Dedicated Freight Corridor (DFC) for efficient logistics.
  • Air and Sea Access: The Dholera International Airport, spanning 1,426 hectares with a 3,200-meter runway, is being developed to alleviate traffic from Ahmedabad’s Sardar Vallabhbhai Patel International Airport. Additionally, a greenfield port, promoted by Dholera Port Limited (a joint venture by J K Group and Adani Group), is planned to bolster maritime trade.

These connectivity projects, expected to be completed within the next two to three years, position Dholera as a logistics and trade powerhouse.

Vision and Development Plan

The vision for Dholera SIR is to create a self-governing global center for economic activities supported by cutting-edge infrastructure. The development plan, aligned with DMIC objectives, focuses on doubling employment potential, tripling industrial output, and quadrupling exports within five years. The city is divided into 12 zones and six sub-centers, including industrial, residential, commercial, knowledge and IT, logistics, and recreational areas.

The Dholera Special Investment Region Development Authority (DSIRDA), established under the Gujarat Special Investment Region Act of 2009, oversees planning and land management. A Special Purpose Vehicle (SPV), Dholera Industrial City Development Ltd. (DICDL), formed in 2016 with 51% ownership by the Gujarat government and 49% by the central government, manages the project’s implementation. The initial 22.54 sq km “Activation Area” is nearly complete, with 95% of Phase-I infrastructure, including 72 km of roads, in place.

The city adopts a plug-and-play approach, offering ICT-enabled land parcels with pre-built infrastructure to streamline business setup. Sustainability is a core focus, with a zero-waste discharge water and wastewater system and the 5,000 MW Dholera Solar Park, India’s largest, driving renewable energy goals.

Investment and Economic Impact

Dholera SIR is attracting significant investments, reflecting growing confidence in its potential. Annual real estate investments range from ₹2,000-3,000 crore, primarily from northern Indian states like Punjab, Haryana, Delhi, Gurugram, and Noida. Major conglomerates are also investing heavily:

  • Adani Group: Developing logistics parks and a multi-modal logistics hub to enhance transportation and trade capabilities.
  • Tata Group: Exploring opportunities across diverse sectors, contributing to Dholera’s industrial ecosystem.
  • Vedanta-Foxconn JV: Investing INR 1.54 trillion (US$18.65 billion) to establish India’s first semiconductor and display manufacturing facility, hailed as the largest corporate investment in independent India’s history.
  • Tata Electronics: Collaborating with Synopsys for a $10.9 billion semiconductor fabrication plant.

Other investors, including Cisco, IBM, Mitsubishi, Hitachi, and Vedanta Limited, are focusing on sectors like IT, manufacturing, and aluminum production. The presence of these industry leaders is expected to create a ripple effect, attracting further investments and fostering a robust business ecosystem.

The region’s economic goals include creating 8 lakh jobs and housing 20 lakh inhabitants by 2040. Phase-I, covering 22.5 sq km, is projected to cost ₹4,400 crore, with 52% allocated to industrial use and 28% to residential areas.

Infrastructure and Smart City Features

Dholera SIR is designed as a smart city with state-of-the-art infrastructure and sustainable urban planning. Key features include:

  • Urban Planning: Six town planning schemes cover 422 sq km, with Town Planning Schemes 5 and 6 spanning 75 sq km and 67 sq km, respectively. The city includes mixed-use zones for residential, commercial, and institutional purposes.
  • Smart Networking: Cisco has completed an international-level ICT plan, ensuring seamless digital connectivity.
  • Residential and Commercial Projects: Developers like Aaiji Group have completed projects such as Aaiji Airport Villa and Aaiji Residency, with more under development. Residential plots start at 200 sq m, catering to diverse housing needs.
  • Hospitality: A 12,095 sq m plot for a 5-star hotel was allocated in 2023, with an e-auction held in June 2023.

Despite its flood-prone location, extensive planning, including Phase-I flood management, mitigates environmental risks.

Challenges and Criticisms

While Dholera SIR has gained momentum, it has faced challenges. Land acquisition from farmers has been contentious, and the region’s low-lying, flood-prone terrain raised concerns, particularly after severe waterlogging in August 2019. Early investors, including Hindustan Construction Company and Universal Success Group, withdrew due to economic viability concerns. However, recent infrastructure progress and high-profile investments have shifted perceptions, with the project now seen as a viable investment destination.

Global Interest and Future Prospects

Dholera SIR is garnering international attention, with South Korean firms exploring opportunities in 2023 and Singapore’s Consul visiting in April 2025 to discuss master planning. Partner countries like the USA, UK, Singapore, France, China, and Korea are engaged in the project, enhancing its global appeal.

Forbes magazine has recognized Dholera as one of the world’s most developing cities, highlighting its investment potential. With infrastructure nearing completion and major projects like the semiconductor fab and solar park underway, Dholera is poised to become a global manufacturing and trading hub, rivaling cities like Shenzhen and Singapore.

Conclusion

Dholera SIR represents a bold vision for India’s economic future, combining cutting-edge infrastructure, sustainable urban planning, and a business-friendly ecosystem. Backed by significant investments from domestic and international players, the region is transforming from an ancient port town into a modern smart city. While challenges remain, the project’s strategic location, robust connectivity, and government support position it as a high-potential investment destination. As Dholera SIR continues to develop, it is set to play a pivotal role in India’s journey toward becoming a global economic powerhouse.

For more information on investment opportunities, visit Dholera SIR Official Website or National Industrial Corridor Development Corporation.