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The Uttar Pradesh government has approved INR 425 crore under the Chief Minister New Township Scheme to promote structured township development in eight cities: Bareilly, Varanasi, Orai, Chitrakoot, Banda, Pratapgarh, Ghazipur, and Mau. The funding will act as seed capital, covering up to 50 percent of land acquisition costs over 20 years, helping local authorities plan and develop residential and mixed-use townships. The initiative is part of the state's broader urban growth strategy to manage increasing populations, improve housing infrastructure, and guide orderly urban expansion.
The Uttar Pradesh government has earmarked INR 425 crore for developing new townships across eight cities as part of its efforts to promote organised urban growth. The fund has been sanctioned under the Chief Minister New Township Scheme, aiming to provide seed capital for early-stage planning and land acquisition in upcoming townships.
The cities selected for this initiative are Bareilly, Varanasi, Orai, Chitrakoot, Banda, Pratapgarh, Ghazipur, and Mau. Local development authorities in these cities have proposed township projects to address housing needs and ensure systematic urban development. The funding is expected to support the creation of planned residential zones integrated with essential infrastructure such as internal roads, water supply, sewage systems, and other public utilities.
The scheme allows the government to cover up to 50 percent of land acquisition costs for township projects. This financial support can be used over a period of 20 years, giving local authorities flexibility in planning and reducing the initial financial burden. The goal is to acquire land early, before prices rise, and to facilitate well-planned townships rather than allowing cities to expand haphazardly.
These townships are designed to provide not just housing but also better living conditions with structured layouts and provision for community facilities. Officials have highlighted that the scheme will help balance rapid urbanisation with infrastructure readiness, ensuring that these cities can accommodate growing populations without strain on existing resources.
This move is part of a broader set of initiatives by the Uttar Pradesh government, which includes earlier investments in expressways, regulatory reforms, and real estate project approvals aimed at strengthening urban infrastructure and promoting structured development across the state. By linking township planning with financial support, the government hopes to encourage long-term, sustainable urban growth.
The initiative also aligns with prior efforts to improve urban planning in other cities of the state, reflecting a continuous focus on creating organised and livable environments for residents. Authorities believe that with proper planning and investment, these new townships can serve as models for future urban development.
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