2 years after Finance panel suggested, Centre ‘evaluating’ 26 proposals for new cities

The 15th Finance Commission report for 2021-26, which was presented in Parliament on February 1, 2021, had recommended Rs 8,000 crore for “incubation” of eight new cities in the country through a challenge.

2 yrs after Finance panel suggested, Centre ‘evaluating’ 26 proposals for new cities

The ministry had set January 20 as the last date for states to submit their bids.

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The Union Housing and Urban Affairs Ministry is evaluating 26 proposals from 21 states for creation of new cities, more than two years after the 15th Finance Commission recommended Rs 8,000 crore for the incubation of eight new cities.

The 15th Finance Commission report for 2021-26, which was presented in Parliament on February 1, 2021, had recommended Rs 8,000 crore for “incubation” of eight new cities in the country through a challenge.

Replying to a question by BJP member Darshana Singh, Minister of State for Union Housing and Urban Affairs Kaushal Kishore said in a written reply to the Rajya Sabha on Monday that the ministry had set minimum eligibility criteria and bid parameters for states competing in the challenge. The ministry had set January 20 as the last date for states to submit their bids, he said.

“Total 26 proposals from 21 states, including Uttar Pradesh, have been received by the last date. These proposals are at scrutiny and evaluation stage,” the minister stated in reply to the MP’s question on the proposals in general, and from UP in particular.

The reply said the 15th Finance Commission had allocated Rs 8,000 crore “for [a] performance-based challenge fund for incubation of eight new cities, wherein the amount available for each proposed new city is Rs 1,000 crore”.

“Considering the small urban population in the Northeast and hill States, Rs 1,000 crore for two new cities (Rs 500 crore each) for two different states has been proposed,” the minister stated in the reply. “A state can have only one new city through this fund. Thus, maximum nine new cities in nine states can be selected.”

As per the reply, among the proposals received for new cities or expansion of existing ones are Gurgaon (Haryana), Jabalpur Extension (Madhya Pradesh), Ayodhya (Uttar Pradesh), GIFT City Expansion (Gujarat), Nagaki Global City (Nagaland), New MOPA Ayush City (Goa), and Bantala Greenfield City (West Bengal).

Damini Nath

Damini Nath is an Assistant Editor with the national bureau of The Indian Express. She covers the housing and urban affairs and Election Commission beats. She has 11 years of experience as a reporter and sub-editor. Before joining The Indian Express in 2022, she was a reporter with The Hindu’s national bureau covering culture, social justice, housing and urban affairs and the Election Commission. Expertise Key Coverage Areas: Damini Nath currently specializes in reporting on two crucial beats: Housing and Urban Affairs: Providing in-depth analysis and reporting on India's urban development, policy, and housing issues. Election Commission (EC): Offering authoritative coverage of electoral processes, policies, and the functioning of India's constitutional body responsible for conducting elections. Professional Background: Her extensive experience includes roles as a reporter and sub-editor, demonstrating a comprehensive understanding of the journalistic process from fieldwork to final production. Previous Role: Before joining The Indian Express in 2022, she served as a dedicated reporter with The Hindu’s national bureau, where her reporting portfolio included: Culture Social Justice Housing and Urban Affairs The Election Commission beat (a consistent area of focus). Trustworthiness Damini Nath's decade-plus career at two of India's most respected and authoritative news institutions, The Indian Express and The Hindu, underscores her commitment to factual, impartial, and high-quality reporting, establishing her as a trusted and credible source for news on urban governance and electoral matters. ... Read More

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