The Uttar Pradesh government is set to roll out an ambitious ₹2,900 crore urban development programme aimed at transforming smaller cities and towns into modern, well-planned urban centres.

Inspired by the Smart Cities Mission, the proposed ‘Navayug Palika Yojana’ will focus on upgrading infrastructure, enhancing digital governance, and improving ease of living across Tier II and III towns, marking a significant push towards balanced and inclusive urban growth in the state, according to a report by Business Standard.

While ₹583 crore is projected to be incurred annually under the plan, the Yogi Adityanath government has estimated a total investment of more than ₹2,915 crore over a five-year period until 2029-30.

Under the roadmap, Tier II and III towns, managed by urban local bodies across 58 district headquarters, will be equipped with modern infrastructure.

The state government will fund the scheme, ‘Navayug Palika Yojana’, from its own financial resources without seeking any contribution from the Centre.

Since the metro cities are managed by 17 municipal corporations in Uttar Pradesh, the government has planned to upgrade towns governed by smaller municipalities with comparable urban infrastructure.

“The main objective is to strengthen urban infrastructure, provide a well-organised ecosystem, and improve the ‘ease of living’ for citizens,” a senior UP official said.

The plan will promote digital governance, e-services, and technological solutions, making citizen services more transparent and efficient.

Interestingly, the Uttar Pradesh government has set a target of developing 100 new townships across 75 districts.

A slew of mega infrastructure projects, including expressways and the development of new urban centres, is boosting the housing and real estate sectors in Uttar Pradesh, which is aspiring to become a $1 trillion economy by 2030.

Uttar Pradesh is gaining significant traction in the real estate sector, which in turn is boosting other segments as well, including the institutional furniture market, said Sameer Joshi, Senior Vice President, Interio by Godrej.

Crediting the policy framework in Uttar Pradesh for creating an amenable business and investment environment, he said the company expects growth across various segments, including SMEs, BFSI, education, and corporates.

Moreover, developing district headquarters is likely to reduce regional imbalances and boost economic activity in areas outside municipal corporations, ensuring balanced urban growth.

A state-level technical committee will evaluate the projects before they are approved by the competent authority.

Uttar Pradesh Urban Development Minister A K Sharma said the state government is committed to holistic and balanced urban development.

Meanwhile, urban bodies have been divided into two categories based on population — above 150,000 and below 150,000 — to prioritise development according to their needs.