Ministry Pushes for Planned Peri-Urban Growth Before 16th Finance Panel
Real Estate

Ministry Pushes for Planned Peri-Urban Growth Before 16th Finance Panel

The Ministry of Housing and Urban Affairs is expected to propose a focus on the planned development of peri-urban areas to tap into Sixteenth Finance Commission grants. This move aims to discourage haphazard growth and illegal constructions in the outskirts of cities.

To shape its recommendations, the ministry has formed sub-groups to address key areas such as political intervention, administrative reforms, and financial resources. The recommendations will be submitted to the commission, which was formed on December 31, 2023, and is chaired by former Niti Aayog vice chairman Arvind Panagariya. The commission's final report is expected by October 2025, and its recommendations will cover the period from 2026-27 to 2031-32.

The ministry’s focus on peri-urban areas marks a shift from the Fifteenth Finance Commission’s focus on urban reforms in larger cities. "We want to incentivise states to plan urbanisation in peri-urban areas, preventing organic, unstructured growth," a senior official stated.

The Five-member Finance Commission is also expected to recommend strategies for enhancing the revenue of urban local bodies, which will be critical in ensuring sustainable urban development. The Fifteenth Finance Commission had allocated ?1.21 lakh crore for urban bodies between 2021 and 2026, with different grant categories based on city population.

As the ministry looks toward involving planning bodies more effectively, reforms to break down top-heavy state structures will likely be crucial. By incentivising change, officials believe these bodies will be better equipped to address the complexities of urbanisation.

The Ministry of Housing and Urban Affairs is expected to propose a focus on the planned development of peri-urban areas to tap into Sixteenth Finance Commission grants. This move aims to discourage haphazard growth and illegal constructions in the outskirts of cities. To shape its recommendations, the ministry has formed sub-groups to address key areas such as political intervention, administrative reforms, and financial resources. The recommendations will be submitted to the commission, which was formed on December 31, 2023, and is chaired by former Niti Aayog vice chairman Arvind Panagariya. The commission's final report is expected by October 2025, and its recommendations will cover the period from 2026-27 to 2031-32. The ministry’s focus on peri-urban areas marks a shift from the Fifteenth Finance Commission’s focus on urban reforms in larger cities. We want to incentivise states to plan urbanisation in peri-urban areas, preventing organic, unstructured growth, a senior official stated. The Five-member Finance Commission is also expected to recommend strategies for enhancing the revenue of urban local bodies, which will be critical in ensuring sustainable urban development. The Fifteenth Finance Commission had allocated ?1.21 lakh crore for urban bodies between 2021 and 2026, with different grant categories based on city population. As the ministry looks toward involving planning bodies more effectively, reforms to break down top-heavy state structures will likely be crucial. By incentivising change, officials believe these bodies will be better equipped to address the complexities of urbanisation.

Next Story
Infrastructure Urban

CFI Appoints New National Council for FY27 and FY28

The Construction Federation of India (CFI) has announced its newly elected National Council and office bearers for a two-year term covering FY27 and FY28. M. V. Satish, Advisor to CMD and Lead Ambassador for Middle East, L&T, has been elected President; Priti Patel, Chief Strategy & Growth Officer, Tata Projects, has been appointed Vice President; and Ajit Bhate, Managing Director, Precast India Infrastructures, has taken charge as Treasurer.The newly formed National Council brings together senior leaders from major EPC and infrastructure companies, reflecting CFI’s continued focus o..

Next Story
Real Estate

India REIT Market Gains Momentum with Strong Returns

India’s Real Estate Investment Trust (REIT) market is witnessing strong growth, emerging as a competitive investment avenue both domestically and across Asia. According to a recent ANAROCK report released at EXCELERATE 2026 by NAREDCO Maharashtra NextGen, the sector is evolving into a mature asset class driven by solid fundamentals, regulatory backing and rising investor confidence.The introduction of Small and Medium REITs (SM REITs) in 2025 has further widened access through fractional ownership, unlocking a potential monetisation opportunity of Rs 670–710 billion. Indian REITs have deli..

Next Story
Real Estate

Domicil Debuts In Tricity With Luxe 9 Showcase

Domicil Germany, a luxury home furnishing brand from the House of HTL International, has made its Tricity debut with an exclusive showcase at Luxe 9, marking its first retail presence in the region.The invite-only event brought together architects, interior designers, real estate developers and high-net-worth individuals, reflecting rising demand for globally inspired, design-led living spaces.Centred on the theme ‘Celebrate Living with Timeless German Design’, the showcase highlighted Domicil’s focus on combining craftsmanship, functionality and refined aesthetics. Attendees experienced..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement