Why Dholera is preferred over Kanpur by investors?

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.

Determining factor Dholera Kanpur
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.


The above factors clearly points out that Dholera shall be developed as a smarter city than Kanpur, one that shall be a better investment option too.

Dholera v/s Tiruppur : Which smart city is smarter?

While the Indians were pondering upon how the government shall resolve the issue of rising urbanization and provide for a better living standard for fellow citizens, Indian Inc. came up with the brilliant idea of 100 smart cities: cities that shall be smarter in technology, smarter in usage of resources and also in amenities. This article shall compare two such cities: Tiruppur, Tamil Nadu and Dholera Gujarat.

Component Dholera Tiruppur
Strategic advantage Dholera is a small city with agriculture being the basic occupation. The residents in the city are mostly poor. However, with Dholera being declared as a smart city and being strategically located next to the DMIC, the scope for development going ahead is manifold. The city is envisaged as a global trading and manufacturing hub and shall be one of the fastest developing cities of India. Dholera, India’s Biggest/Largest Greenfield Smart city of India first ever of its kind to be developed in India. The city contributes to 90% of India’s cotton knit wear export and gives employment to over 6 lakh people. An established economy, the development scope going ahead shall be at its own pace. Being tagged as one of the 100 smart city is certain to enhance its development scope but the impact shall not be felt as strongly as that in Dholera; reason being that Tiruppur is already economically robust and has successfully created a place for itself on Tamil Nadu soil.
Funding Dholera has received an initial funding for Rs. 3,000 crores for trunk infrastructure project. The next 1700 crores were sanctioned for development of Dholera international airport. Recently, another Rs. 1700 crores has been sanctioned to L&T for the tender awarded to it for construction of roads. Such thrust from the government has proved to be a catalyst in attracting funds from foreign and Indian investors who are investing massively in the first smart city project. The funding pattern for Tiruppura is yet to be finalized by the central government. If the government decides to do an initial funding of Rs. 2000 crores (the way it has been done for the first 20 smart cities) Tiruppur shall lag much behind Dholera. This shall also adversely impact the development plans and slow the development pace of the region.
Infrastructure Dholera is at a nascent stage of development. Due to this, the town had not been a witness to much development on the infrastructure front. This factor now proves to be a blessing in disguise giving the architects and designers developing Dholera a free hand in making it a world class city. Tiruppura, due to its industrial set up is much ahead of Dholera in terms of basic infrastructure amenities. This in turn means that the master planners shall have to make extra effort in either pulling down the existing infrastructure or revamping it. Therefore, possibly the infrastructure set up of Tiruppura might not match up that of Dholera.
Property Price Dholera is very cheap when it comes to buying a property. This has lured global investors to invest sizeable amount in Dholera real estate in anticipation of reaping exponential returns. Tiruppura, being a developed economy has seen significant appreciation in real estate prices. Therefore any property here is more expensive than that in Dholera.


The above factor concludes that Dholera is a better, safer and smarter Investment destination than Tiruppura.