The Union Ministry of Housing and Urban Affairs has received 28 proposals from 23 states for the creation of new cities, in line with the central government's initiative to address urbanization. In February 2021, the government announced plans to develop eight new cities with an allocation of INR 8,000 crore. The 15th Finance Commission recommended funding of INR 1,000 crore per city. An expert committee was formed to finalize bid parameters, and after the North-Eastern states submitted revised proposals, 28 proposals were received. These submissions are under review by the relevant authorities.
The Union Ministry of Housing and Urban Affairs has received 28 proposals from 23 states for the establishment of new cities, which are presently under review by the relevant authorities. In February 2021, the ministry revealed plans for the central government to develop eight new cities to address the growing demand for urban expansion.
The 15th Finance Commission, established by the government, has suggested an allocation of INR 8,000 crore for the development of eight new cities across eight states. Each state can receive funding for just one new city under this scheme. In a written reply, the Union Minister of State for Housing and Urban Affairs, Tokhan Sahu, stated that INR 1,000 crore is available for the development of each proposed city.
Following the recommendations of the 15th Finance Commission, the Ministry of Housing and Urban Affairs established an expert committee to finalize the bid parameters for the development of new cities, according to the minister.
The committee has established the minimum eligibility criteria and bid parameters, and a Request for Proposal (RfP) was distributed to all states. By the final submission deadline, the ministry had received 26 proposals from 21 states, as stated in the written response.
As the initial proposals from North-Eastern States did not meet the required quality standards, these states were asked to submit fresh or revised proposals. As a result, a total of 28 proposals from 23 states, including one from Uttar Pradesh, have been received. These proposals are currently under review by the relevant authorities.
In conclusion, the proposals for new cities represent a significant step towards meeting the growing demand for urban expansion in India. With a focused approach and funding support, the development of these cities aims to enhance urban infrastructure and ensure sustainable growth. The ongoing review process will determine the cities' viability and ensure that the projects meet the necessary criteria for development. By addressing urbanization challenges, this initiative is expected to contribute to balanced regional growth, improving living standards and promoting inclusive development across the country.
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