Gujarat’s mega industrial ambitions get push with ₹20,665 crore Sarkhej-Dholera corridor nod

Rashmi Pandey — Wed, 13 May 2026 10:04:09 +0000

The Union Cabinet on Wednesday approved a major infrastructure project worth ₹20,665 crore for the construction of the Sarkhej–Dholera semi high-speed double-lane corridor in Gujarat, marking a significant boost for connectivity linked to the ambitious Dholera Special Investment Region (SIR) and industrial development plans in the state.

According to reports emerging from the Cabinet meeting chaired by Prime Minister Narendra Modi, the proposed corridor will connect Sarkhej near Ahmedabad with the rapidly developing Dholera region, which is being positioned as one of India’s largest smart industrial cities under the Delhi-Mumbai Industrial Corridor (DMIC) programme.

Officials said the project is aimed at improving high-speed connectivity between Ahmedabad and Dholera while supporting freight movement, industrial logistics and future urban expansion around the Dholera Special Investment Region. The semi high-speed corridor is expected to significantly reduce travel time and improve access to key industrial zones, ports and logistics hubs in Gujarat.

The approval comes as the Centre intensifies infrastructure investment across strategic industrial corridors and manufacturing zones to accelerate economic growth and attract global investment into sectors such as semiconductors, electronics, green energy and heavy manufacturing. Dholera has already emerged as a key focus area for India’s semiconductor manufacturing ambitions after several large investment proposals were announced for the region over the past year.

Government officials stated that the corridor would also strengthen connectivity to the upcoming Dholera International Airport and other infrastructure projects being developed in the region. The road project is expected to support future cargo transportation and facilitate industrial supply chains linked to western India’s manufacturing network.

Dholera SIR, spread across thousands of hectares in Gujarat, has been projected as India’s first greenfield smart city and one of the country’s largest planned industrial zones. The area is being developed with integrated infrastructure including expressways, metro connectivity, power networks, industrial clusters and logistics facilities.

Infrastructure experts believe the newly approved corridor could play a critical role in improving regional mobility and attracting additional private sector investments into Gujarat’s industrial ecosystem. The project also aligns with the Centre’s broader push toward expanding high-speed road infrastructure and multimodal transport connectivity across major economic corridors.

The Cabinet’s decision comes amid a series of large-scale infrastructure approvals announced by the government in recent months across highways, railways, ports and industrial development sectors. Officials maintain that such projects are essential for boosting manufacturing competitiveness, employment generation and long-term economic expansion.

Construction timelines and detailed implementation plans for the Sarkhej-Dholera corridor are expected to be announced separately by the concerned ministries and agencies in the coming weeks.

SmartCity | Business Upturn

Gujarat’s mega industrial ambitions get push with ₹20,665 crore Sarkhej-Dholera corridor nod