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The Gujarat government has announced a comprehensive INR 3,395 crore funding for civic development across eight municipal corporations, 22 municipalities, and four Urban Development Authorities. A large share INR 3,263 crore will go to infrastructure projects like roads, drainage, rainwater systems, and public amenities. The initiative aligns with the state's declaration of the current period as its "Urban Development Year", following a 40% hike in the urban budget to INR 30,325 crore. With tailored allocations for rapidly growing and newly formed municipal corporations, this move aims to fast-track Gujarat's urban transformation.
The Gujarat government has allocated INR 3,395 crore to various civic bodies across the state. The funds are being channelled to eight municipal corporations including Surat, Vadodara, Bhavnagar, Gandhinagar, Jamnagar, and newly formed corporations like Anand, Mehsana, and Porbandar as well as 22 municipalities and four Urban Development Authorities (UDAs), namely those in Ahmedabad, Vadodara, Surat, and Rajkot. Advertisement
The disbursement is part of Gujarat's broader plan to designate the current year as its "Urban Development Year", following the announcement of a significantly expanded urban budget of INR 30,325 crore, marking a 40% increase from the previous fiscal cycle. This special status aims to speed up ongoing and planned development works across the rapidly urbanising state.
Of this allocation, INR 3,263 crore has been sanctioned under the state's flagship urban development programme to support a range of civic infrastructure initiatives such as roadworks, drainage, water management, beautification projects, and creation of public amenities. Around INR 598 crore is earmarked for road development through the Sadak Yojana, while INR 1,400 crore is being allocated to core civic works. An additional INR 170 crore has been reserved for extending infrastructure to the expanding outskirts and urban growth centres. Another INR 168 crore will go towards greenfield development, rejuvenation efforts, rainwater harvesting systems, and public engagement projects like identity campaigns and citizen-led initiatives. These funds will also cover amenities such as libraries, reading rooms, community parks, and stormwater drainage networks.
According to a senior official, the allocation process was guided by proposals submitted by each civic body, tailored to their local needs and priorities. Newly formed corporations and areas witnessing rapid population growth were given special attention in the financial planning. Municipal corporations such as Gandhinagar, Mehsana, and Porbandar have received dedicated allotments for integrated development works, including upgradation of road infrastructure, civic amenities, solid waste management, and beautification schemes.
This announcement comes on the heels of a prior INR 2,204 crore disbursal in an earlier phase, aimed at similar objectives. In addition, the state's decision to grant municipal corporation status to cities like Anand, Nadiad, Morbi, Navsari, and Surendranagar earlier this year has significantly widened the network of eligible local bodies, further decentralising governance and funding.
The state government has clarified that this is not a one-off grant, but a targeted funding mechanism designed to keep pace with the demands of urban expansion. These strategic investments are expected to plug infrastructure gaps, improve livability standards, and support economic activities by modernising essential services across Gujarat's cities.
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