+
Centre Drops Greenfield Cities Plan, Redirects Rs 80 Bn
ECONOMY & POLICY

Centre Drops Greenfield Cities Plan, Redirects Rs 80 Bn

The Union government has quietly shelved the Fifteenth Finance Commission’s proposal to incubate eight new greenfield cities, reallocating the Rs 80 billion set aside for the venture to a forthcoming urban-development scheme. According to senior officials at the Ministry of Housing and Urban Affairs (MoHUA), the new initiative is being shaped in consultation with NITI Aayog and the Asian Development Bank to bolster infrastructure in towns with populations below one lakh.

The decision, taken at the behest of the Prime Minister’s Office, follows presentations for the government’s 100-day agenda that urged channeling investment into existing urban centres rather than creating cities from scratch. As a result, 26 state proposals—including plans for Ayodhya, Jagiroad and an expanded GIFT City—have been put on ice despite preliminary state-level spending.

For the current fiscal year, the Centre is promoting planned townships through its Special Assistance to States for Capital Investment programme, which offers 50-year interest-free loans tied to sectoral reforms. Meanwhile, MoHUA is drafting the contours of an “urban challenge” fund announced in the Budget, likely to target towns of 50,000–100,000 inhabitants and carry an outlay of about Rs 1,000 billion.

Urban experts welcome the pivot. They argue that densifying city cores and upgrading peri-urban areas will yield stronger economic returns than creating “artificial” cities such as Lavasa or Naya Raipur, which have struggled to attract residents.
 
Success, they add, hinges on clear legal frameworks that let states tailor priorities while the Centre sets common standards.

The Union government has quietly shelved the Fifteenth Finance Commission’s proposal to incubate eight new greenfield cities, reallocating the Rs 80 billion set aside for the venture to a forthcoming urban-development scheme. According to senior officials at the Ministry of Housing and Urban Affairs (MoHUA), the new initiative is being shaped in consultation with NITI Aayog and the Asian Development Bank to bolster infrastructure in towns with populations below one lakh.The decision, taken at the behest of the Prime Minister’s Office, follows presentations for the government’s 100-day agenda that urged channeling investment into existing urban centres rather than creating cities from scratch. As a result, 26 state proposals—including plans for Ayodhya, Jagiroad and an expanded GIFT City—have been put on ice despite preliminary state-level spending.For the current fiscal year, the Centre is promoting planned townships through its Special Assistance to States for Capital Investment programme, which offers 50-year interest-free loans tied to sectoral reforms. Meanwhile, MoHUA is drafting the contours of an “urban challenge” fund announced in the Budget, likely to target towns of 50,000–100,000 inhabitants and carry an outlay of about Rs 1,000 billion.Urban experts welcome the pivot. They argue that densifying city cores and upgrading peri-urban areas will yield stronger economic returns than creating “artificial” cities such as Lavasa or Naya Raipur, which have struggled to attract residents. Success, they add, hinges on clear legal frameworks that let states tailor priorities while the Centre sets common standards.

Next Story
Infrastructure Urban

Companies in GIFT City IFSC Cross 400 Mark

As of July 31, 2025, a total of 409 companies are operating in the Gujarat International Finance Tec City – International Financial Services Centre (GIFT IFSC), Finance Minister Nirmala Sitharaman informed Parliament.In a written reply in the Lok Sabha, she highlighted that the number of firms in GIFT IFSC has grown nearly fivefold in less than five years — from 82 on October 1, 2020, to 409 by July 2025.The centre now hosts a wide range of entities, including those in banking, asset management, and allied services, alongside other financial segments.To support GIFT IFSC’s growth, the go..

Next Story
Infrastructure Urban

GMDA to Prepare Fresh DPR for Naurangpur Sewage Treatment Plant

The Gurugram Metropolitan Development Authority (GMDA) will prepare a fresh detailed project report (DPR) for the proposed 40 million litres per day (MLD) sewage treatment plant (STP) at Naurangpur. The move comes after it was found that a high-tension power line and a 24-metre-wide road pass through the site allocated for the project, requiring a revised plan.According to officials, the original 3.65-acre land parcel transferred from the Municipal Corporation of Manesar (MCM) was reduced to 2.89 acres following the road development. The presence of the power line further divided the land into..

Next Story
Infrastructure Transport

PM Inaugurates Bihar Highway and New Ganga Bridge

Prime Minister Narendra Modi will inaugurate a key highway project on Friday, connecting Aunta (Mokama) and Simaria (Begusarai), featuring a newly built 1.865-km bridge across the Ganga.The project establishes direct road connectivity between Mokama in Patna district and Begusarai. The bridge has been constructed parallel to the old two-lane rail-cum-road Rajendra Setu, which is currently under repair and restricts heavy vehicle movement.The new bridge will allow heavy vehicles to avoid a detour of nearly 100 km while travelling between north Bihar districts such as Begusarai, Supaul, Madhuban..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?