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The Uttar Pradesh government has raised development charges for construction projects across more than 30 key cities, including Lucknow, Kanpur, Ghaziabad, Agra, and Varanasi. The hike ranges from a minimum of 50% to nearly 90% in some areas, reflecting rising construction costs, taxes, and inflation. The revised fees must be paid upfront before starting any civil works. Officials said the updated charges, not revised for about a decade, are intended to boost the housing authorities revenue and fund urban infrastructure development.
The Uttar Pradesh housing and urban planning department has increased development charges for construction activity in over 30 major cities across the state. This revision comes after the government amended the UP urban planning and development rules for assessment, levy, and collection of development fees earlier this month. Developers and individuals planning construction projects will now need to pay the revised fees upfront before commencing any civil work. Advertisement
The increase in development charges varies by city. While the minimum hike is over 50%, some areas have seen charges rise by almost 90%, effectively doubling the previous rates. In Ghaziabad, part of the National Capital Region, the fee per square metre rose from INR2,500 to INR4,170, marking a 67% increase. Lucknow, Kanpur, and Agra now see charges rise from INR1,400 per square metre to INR2,475, an increase of 77%. Other cities, including Varanasi, Prayagraj, Meerut, Moradabad, and Bareilly, have updated rates of INR1,510 per square metre.
Officials explained that development charges had not been revised for about a decade, while costs of construction materials, services, taxes, and duties had risen significantly. A senior officer from the housing and urban planning department stated that the revised structure is necessary to reflect current market realities. The principal secretary of the housing department, P Guruprasad, said that the increased charges will strengthen the annual revenue of development authorities, which reached around INR12,740 crore in the previous financial year. The additional funds will be used to enhance urban infrastructure across the state.
This move affects both developers and individual property owners, who must now factor in higher upfront costs while planning projects. Housing development authorities in the state said that the revision aims to balance the need for revenue with improving urban facilities and services, ensuring cities can support growing populations and infrastructure demands.
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