With the Modi government declaring it as the first smart city of India, the fate of Dholera changed. The city changed from a hideous city that could hardly be recognized to one of the most popular city of India. Yet another popular city and the largest city of Uttar Pradesh is Kanpur. Also known as the ‘Leather City of the World’ due to its extensive leather industry the city has a population over 5 million.
Dholera SIR has however been chosen as the preferred option by investors irrespective of the stark difference in the demographics of the two cities; Kanpur being higher in popularity and on commercial terms. Let us see why.
|Location||Dholera is located near the Delhi-Mumbai Industrial Corridor, an important factor that is instrumental in attracting mega companies and MNC’s in setting up their offices and units here. It is also close to GIFT city and the state capital Allahabad making it a good investment option.||Kanpur is located in the heart of Uttar Pradesh but does not share proximity with DMIC.|
|Development Phase||It has been declared as the first smart city of India. Trunk Infrastructure work has begun on an activation area of 22.5 square kilometers. The project is divided into three phases; each of them shall take about a decade to develop with the final deadline for completion of setting up Dholera as a smart city projected to be 2040.||Kanpur is still to participate in the second round of smart city contest which shall decide in which year development work shall commence.|
|Funding||Rs. 3,000 crore has been sanctioned as initial funds for trunk infrastructure development by the central government. Balance funding is to be generated through PPP model and foreign investments. Companies such as Mahindra Lifespace Developers Limited and Nano Works Developer Gujarat Pvt Ltd amongst many others have committed to set up mega units in Dholera and land acquisition for the same has already begun.||Funding is a distant requirement for the project and shall be finalized once it reaches the planning and development phase. Currently, the government has declared Rs. 96 crore per smart city per year for five years. This is way behind what Dholera has already received which might be a deterrent for Kanpur in meeting Dholera’s pace of development.|
|Cost of Property||Property valuations are cheap here which makes it a value proposition for investors. With all other factors in favor of Dholera, the prices shall soon be seen soaring up resulting in exponential returns for investors.||Owing to the popularity of Kanpur, the price of property is on the higher side making it a costly proposition for investors leaving low scope of appreciation in times to come.|
|Infrastructure||Infrastructure being negligible in Dholera leaves great scope for planners and designers to develop it is as a remarkable smart city without any hindrance.||Kanpur’s existing infrastructure is hard to be demolished, reshaped and reconstructed. Thus it might be challenging for planners to utilize their optimum potential and develop it as a world class city.|