₹225 crore seed capital for new towns of Agra, Bareilly and Prayagraj

The new-city seed capital for Agra, Bareilly and Prayagraj: what happened?

Cities in UP grow faster than planned housing. When authorities cannot buy land in time, unplanned colonies spread at the edges. Seed capital helps them acquire land early for new, planned townships.

• Under the CM Urban Expansion/New City Promotion Scheme, the Cabinet allowed up to ₹355.06 crore seed capital for the Agra, Bareilly and Prayagraj development authorities and released ₹225 crore as the first instalment. [UP Cabinet]

How does the scheme work?

• Guidelines were issued by a Government Order dated 6 April 2023.
• The State gives up to 50 per cent of land acquisition cost as seed capital.
• The seed capital is for a maximum period of 20 years.
• ₹3,500 crore is provided in 2026–27 for overall development of new cities; this first instalment comes from it.
• The Cabinet authorised the Chief Minister to make any amendment to the scheme.

Why does it matter?

• It aims at planned and orderly growth of urban areas.
• It aims to provide housing for the urban population.
• The same Cabinet also set a procedure for regularising maps passed by district panchayats inside development authority areas.

What can Prelims ask on the new-city seed capital for Agra, Bareilly and Prayagraj?

• CM Urban Expansion/New City Promotion Scheme: guidelines of 6 April 2023.
• Seed capital: up to 50 per cent of land acquisition cost, for up to 20 years.
• June 2026: Agra, Bareilly, Prayagraj authorities; ₹225 crore first instalment.