The Union Ministry of Environment, Forest and Climate Change has granted environmental clearance to the Greenfield Industrial City being developed by the Bundelkhand Industrial Development Authority in Jhansi, clearing a major regulatory hurdle for one of Uttar Pradesh's largest planned industrial developments. The project is estimated at Rs 1.51 trillion (tn) and will be developed across 253.33 square kilometres, covering 33 villages in Jhansi tehsil. The approval forms part of the state strategy to accelerate industrialisation in Bundelkhand.

Under the approved framework, 33.02 per cent of the land has been earmarked for industrial use, with agro-processing, textiles, defence manufacturing, electronics, electric vehicles and data centres expected to anchor future activity. The appraisal followed the Environmental Impact Assessment Notification, 2006, with the Expert Appraisal Committee reviewing the proposal in June 2025 and further meetings in March and April 2026. A public hearing was conducted in December 2025 after advance notice in November.

The master plan allocates around 37.4 square kilometres to new residential development while retaining 5.4 square kilometres of existing rural settlements for integration into the urban ecosystem. Nearly 63.13 square kilometres, or almost a quarter of the area, has been reserved as green and recreational space and the blueprint includes a 50 metre green belt along the boundary plus a 150 metre buffer around Dongri Dam. Infrastructure planning designates 29.3 square kilometres for transport and logistics to support industrial operations.

The environmental management framework features zero liquid discharge and phased wastewater capacity including 163.26 MLD sewage treatment and 150.88 MLD common effluent treatment, with treated water recycled for non potable uses and no discharge into the Betwa, Pahuj or Angauri rivers. Drinking water need of 217.22 MLD will be sourced from Rajghat Dam. Land acquisition has progressed with more than 25,700 acres acquired and compensation under the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013, while authorities project employment for more than 560,000 people as the Master Plan to 2045 is implemented in phases.