Centre Receives 28 Proposals from 23 States for New City Development

The Union Ministry of Housing and Urban Affairs has received 28 proposals from 23 states for the development of new cities, as part of the central government’s initiative to meet the growing demand for urban expansion. This marks a significant step in fulfilling the commitment made in February 2021 to develop eight new cities. The proposals are under scrutiny, with a focus on ensuring quality and adherence to eligibility criteria set by the 15th Finance Commission.

Background and Funding Allocation

In line with the recommendations of the 15th Finance Commission, the central government has allocated Rs 8,000 crore for the development of eight new cities across different states. Each city will receive Rs 1,000 crore. States are eligible to propose only one city each, and the proposals are being reviewed by an expert committee formed for finalizing bid parameters.

Proposals and Scrutiny Process

The ministry initially received 26 proposals from 21 states, but due to a lack of strong proposals from North-Eastern states, revised proposals were sought. As a result, the ministry has now received a total of 28 proposals, including one from Uttar Pradesh, which are currently under examination by the competent authority.

Future Steps

These proposals are part of the central government’s broader vision of addressing the challenges posed by urbanization and ensuring sustainable urban development in India. The new cities will play a key role in decongesting existing urban areas and fostering balanced regional development.

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