LUCKNOW: The Uttar Pradesh Cabinet greenlit proposals to allocate funds for the planned and comprehensive development of new cities in Agra, Bareilly, and Prayagraj under the Chief Minister Urban Expansion/New City Promotion Scheme.
This decision was made during a Cabinet meeting led by Chief Minister Yogi Adityanath, as stated in an official announcement.
For the financial year 2026-27, a budget allocation of ₹3,500 crore has been established for the scheme.
As part of this initiative, seed funding of up to ₹355.06 crore has been sanctioned for agencies involved in the new city projects in Agra, Bareilly, and Prayagraj, with ₹225 crore approved as the first tranche of the total budget.
The move aims to expedite the development of modern, organized urban areas that can meet future needs and offer improved housing options amidst rising urbanization in the state. The state government initiated the Chief Minister Urban Expansion/New City Promotion Scheme to support organized urban growth and enhance residential facilities to address the demands of a burgeoning urban population. Comprehensive guidelines for the initiative were issued on April 6, 2023.
Under this scheme, the state government will cover up to 50% of the costs incurred for land acquisition related to the development of new cities, providing seed capital for a maximum of 20 years. This provision is anticipated to aid development authorities and other agencies in executing large-scale urban infrastructure projects.
