The Indian government's ambitious plan to create eight new cities is facing delays, with no projects finalised despite receiving 26 proposals from 21 states. The Ministry of Housing and Urban Affairs invited proposals in March 2022, but the evaluation process is taking longer than expected. The 15th Finance Commission had recommended allocating INR 8,000 crore, aiming to select cities by December 2022 and release funds by March 2023. States like Madhya Pradesh and Uttar Pradesh have proposed new cities, challenges such as land acquisition and infrastructure costs however have slowed progress, raising concerns about the future of the initiative.
The Indian government's ambitious plan to build eight new cities has faced significant delays, with no projects finalised despite receiving 26 proposals from 21 states. The Ministry of Housing and Urban Affairs first invited proposals for the initiative in March 2022, but the evaluation process has taken longer than expected, raising concerns about the progress and future of the plan.
The original excitement surrounding the announcement of new cities has faded, as nearly two years have passed with little to show in terms of development or updates. The government has not provided clear information or transparency on the status of the projects, leading to doubts about its commitment to the initiative.
The 15th Finance Commission, in its 2021-26 report, had recommended setting aside Rs 8,000 crore to fund the creation of these new cities. The ministry was tasked with selecting eight cities from the proposals based on criteria such as economic potential, land availability, and infrastructure connectivity. According to the commission's recommendations, the cities were to be chosen by December 2022, with the first grant to be released by March 31, 2023. However, the Ministry of Housing and Urban Affairs is still reviewing the proposals, delaying the project timeline.
Among the 21 states that submitted proposals are Madhya Pradesh, Maharashtra, West Bengal, Kerala, and Gujarat, each of which proposed two cities. Madhya Pradesh, for example, aims to develop Jabalpur Extension as a garment industry hub and Pithampur Phase 4 to focus on housing due to its proximity to industrial areas. Other states, such as Uttar Pradesh, have made progress, particularly with its greenfield township in Ayodhya, while states like Rajasthan and Madhya Pradesh remain stuck in the planning phase.
Urban development experts have pointed out that building entirely new cities is a complex and costly endeavour. Issues such as land acquisition and the high investment required for initial infrastructure pose significant challenges. Some experts suggest that rather than focusing solely on new cities, the government could prioritise expanding and developing existing urban areas through urban extensions and vertical development.
While the plan to create new cities is forward-thinking, the ongoing delays and lack of clear progress raise questions about whether this vision will be realised or whether it will remain an unfulfilled dream for India's urban future.
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