Dholera Smart City and SIR: Redefining Urban Development in Gujarat

Nestled approximately 100 kilometers southwest of Ahmedabad, Dholera Smart City represents India’s most ambitious urban development undertaking. Conceived as part of the Delhi-Mumbai Industrial Corridor (DMIC), this greenfield project spans a staggering 920 square kilometers – dwarfing even Shanghai. Unlike conventional cities, Dholera is engineered from the ground up as a globally benchmarked sustainable metropolis, integrating cutting-edge technology with ecological responsibility. Its master plan allocates 22% of the area to green spaces, deploys an underground utility corridor for power and data cables, and implements a smart grid for efficient energy distribution. The city’s design prioritizes walkability, cycle tracks, and a robust public transport network to minimize carbon emissions. At its core, Dholera functions as a Special Investment Region (SIR), a legally demarcated zone offering streamlined regulatory processes and world-class infrastructure to attract both domestic and international industries. This SIR status, established under the Gujarat Special Investment Region Act, grants it administrative autonomy for swift decision-making, making it a magnet for high-value manufacturing and technology sectors.

The strategic location near the Gulf of Khambhat positions Dholera as a pivotal logistics and export hub. Its proximity to the upcoming Dholera International Airport and a dedicated freight corridor ensures seamless multimodal connectivity. Water security is addressed through the construction of a 115-km pipeline from the Narmada River, while a state-of-the-art wastewater treatment plant aims for 100% water reuse. The city’s phased development focuses initially on activating an Early Harvest Area of 22.5 sq km, where trunk infrastructure – roads, water supply, sewage systems, and power networks – is rapidly materializing. Residential and commercial zones within this area are designed with mixed-use principles, blending housing, workspaces, and recreation to foster vibrant communities. The governance model incorporates smart city operation centers for real-time monitoring of traffic, security, and utility usage through IoT sensors, setting an unprecedented standard for urban management in India.

Infrastructure Revolution: Connectivity, Airport, and Industrial Transformation

Dholera’s metamorphosis hinges on groundbreaking infrastructure projects that redefine regional accessibility. The crown jewel is the upcoming Dholera International Airport, strategically positioned just 20 km from the city center. Designed as a world-class aerotropolis, this greenfield airport will handle 20 million passengers annually in its initial phase, scaling to 50-60 million, with parallel cargo facilities targeting 0.8 million tonnes. Its development aligns with the city’s industrial growth, facilitating just-in-time logistics for advanced manufacturing units. Complementing this is the six-lane Ahmedabad-Dholera Expressway, drastically reducing travel time between the two cities to under 90 minutes. This expressway integrates with the DMIC’s dedicated freight rail corridor, creating an unparalleled logistics spine that connects Dholera to Delhi and Mumbai’s ports.

Within the SIR, industrial plots are meticulously planned with plug-and-play utility provisions. Sectors like electronics, biotechnology, pharmaceuticals, and renewable energy are actively courted through the Dholera Industrial City Development Limited (DICDL). Major corporations, including Tata Group and Suzuki, have acquired land parcels, signaling strong investor confidence. The city’s energy infrastructure is equally transformative, featuring a dedicated 400 KV grid substation and plans for large-scale solar parks. Water management showcases innovation, with a 27 MLD water treatment plant already operational and a 30 MLD Common Effluent Treatment Plant under construction to serve industrial clusters. The development of a deep-sea port at nearby Tuna Tekra further amplifies Dholera’s export potential, positioning it as a pivotal node in global supply chains. These interconnected projects don’t just serve Dholera; they catalyze economic transformation across Gujarat, turning the region into an advanced manufacturing powerhouse.

Project Acceleration: Current Milestones and Strategic Implications

The Dholera Smart City project has shifted from planning to tangible execution, with significant milestones achieved since 2023. The trunk infrastructure for the Early Harvest Area is nearing completion, encompassing 38 km of arterial roads with integrated utility tunnels. Land acquisition for Phase-1 is finalized, and plot allotments for industrial, institutional, and residential use are actively underway. The central government recently sanctioned ₹3,285 crore for critical internal infrastructure, accelerating development momentum. Construction of the Dholera Airport has commenced, with Phase-1 targeted for operational status by 2026. The airport’s strategic importance is underscored by its designation as a second hub for the Ahmedabad metropolitan region, alleviating congestion at Sardar Vallabhbhai Patel International Airport. Simultaneously, work progresses on the metro rail link connecting Dholera to Ahmedabad, reinforcing the economic symbiosis between the established metropolis and its burgeoning smart city counterpart.

For investors and businesses tracking the dholera smart city project update, the activation of the Special Investment Region’s governance framework is pivotal. The Dholera SIR Authority now offers single-window clearance, drastically reducing approval timelines. Recent policy enhancements include extended land leases (up to 99 years) and fiscal incentives under Gujarat’s Industrial Policy. The project’s scale attracts ancillary development; integrated townships, educational campuses, and healthcare facilities are in the planning stages. Crucially, Dholera’s development model prioritizes climate resilience. Over 11,000 hectares are designated as “green belts,” and the city incorporates flood mitigation channels designed to handle extreme weather events. This focus on sustainability, combined with its strategic location and advanced infrastructure, positions Dholera not merely as a city but as a transformative economic engine set to reshape Gujarat’s industrial landscape for decades, offering unparalleled opportunities in manufacturing, real estate, and technology-driven services.

By Mina Kwon

Busan robotics engineer roaming Casablanca’s medinas with a mirrorless camera. Mina explains swarm drones, North African street art, and K-beauty chemistry—all in crisp, bilingual prose. She bakes Moroccan-style hotteok to break language barriers.

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