The Uttar Pradesh government has sanctioned seed funding of Rs 1,832.51 crore to accelerate the development of new urban centres under the Chief Minister’s Urban Extension and New City Promotion Scheme. The funds will support projects in Rampur, Ayodhya, Lucknow, and the Baghpat-Baraut Khekra Development Authority, according to an official release.
Of the approved amount, an initial instalment of Rs 970 crore will be disbursed soon. For 2025–26, the state has earmarked Rs 3,000 crore for the scheme, which aims to guide the structured expansion of cities while ensuring better housing and infrastructure for a rapidly growing population.
The Urban Extension scheme, notified on 6 April 2023, provides up to 50 per cent of land acquisition costs as seed capital, with repayment spread over as many as 20 years. The framework is designed to foster planned, sustainable, and well-connected urban spaces, avoiding the risks of haphazard growth.
Officials said the initiative will channel resources toward strategic land acquisition and infrastructure, ensuring that new cities offer both liveability and resilience. The Cabinet has also authorised the Chief Minister to make amendments to project plans if necessary, giving flexibility for smoother implementation.
While Ayodhya and Lucknow remain central to the state’s development agenda, the inclusion of Rampur and Baghpat-Baraut Khekra highlights the government’s intention to broaden growth beyond traditional hubs.
