UP Cabinet Okays Municipal Bonds for Infrastructure
ECONOMY & POLICY

UP Cabinet Okays Municipal Bonds for Infrastructure

In a significant move aimed at bolstering infrastructure development in Uttar Pradesh, the state Cabinet approved the issuance of municipal bonds for the cities of Prayagraj, Varanasi, and Agra. The decision was made during a cabinet meeting chaired by Chief Minister Yogi Adityanath, which took place in the Maha Kumbh Mela area in Prayagraj.

The new initiative will see the issuance of municipal bonds, enabling these cities to raise funds from the market for infrastructure projects. For every billion raised through these bonds, the state government will provide an additional Rs 130 million as a grant, which will be deposited into an escrow account by the Government of India. Municipal bonds of up to Rs 500 million will be issued for each of the three cities.

This initiative will allow the municipalities to access a larger pool of capital, enabling long-term investments in critical infrastructure projects. It follows a similar approach previously undertaken by municipal corporations in Lucknow and Ghaziabad.

In addition to the bond issuance, the Cabinet approved a new residential project in Agra and endorsed the Agra Development Authority's proposal to construct a 100-meter-wide inner ring road. A land parcel scheme for this project was also given the green light. Furthermore, an ex-gratia amount of Rs 2.04 billion was approved to cover the difference between the 2010 circle rate and the current circle rate for 442.4 hectares of land in Agra.

The Cabinet also agreed to amend the notification from the Uttar Pradesh State Industrial Development Authority to separate industrial development areas in the villages of Rahankala and Raipur. These moves are expected to stimulate growth and development across the region.

In a significant move aimed at bolstering infrastructure development in Uttar Pradesh, the state Cabinet approved the issuance of municipal bonds for the cities of Prayagraj, Varanasi, and Agra. The decision was made during a cabinet meeting chaired by Chief Minister Yogi Adityanath, which took place in the Maha Kumbh Mela area in Prayagraj. The new initiative will see the issuance of municipal bonds, enabling these cities to raise funds from the market for infrastructure projects. For every billion raised through these bonds, the state government will provide an additional Rs 130 million as a grant, which will be deposited into an escrow account by the Government of India. Municipal bonds of up to Rs 500 million will be issued for each of the three cities. This initiative will allow the municipalities to access a larger pool of capital, enabling long-term investments in critical infrastructure projects. It follows a similar approach previously undertaken by municipal corporations in Lucknow and Ghaziabad. In addition to the bond issuance, the Cabinet approved a new residential project in Agra and endorsed the Agra Development Authority's proposal to construct a 100-meter-wide inner ring road. A land parcel scheme for this project was also given the green light. Furthermore, an ex-gratia amount of Rs 2.04 billion was approved to cover the difference between the 2010 circle rate and the current circle rate for 442.4 hectares of land in Agra. The Cabinet also agreed to amend the notification from the Uttar Pradesh State Industrial Development Authority to separate industrial development areas in the villages of Rahankala and Raipur. These moves are expected to stimulate growth and development across the region.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

Asian Energy Services Q1 FY27 PAT Rises 129 Per Cent

Asian Energy Services Limited reported a 129 per cent year-on-year rise in net profit to Rs 128 million for Q1 FY27, compared with the corresponding quarter last year.Revenue increased 135 per cent year-on-year to Rs 2.71 billion, supported by continued momentum across its services business, disciplined execution and contributions from domestic and international operations. EBITDA grew 81 per cent year-on-year during the quarter.As of June 30, 2026, the company’s standalone order book stood at Rs 17.54 billion, with around 60 per cent coming from oil and gas services and 40 per cent from min..

Next Story
Infrastructure Urban

BioBTX to Build First Commercial-Scale Circular Chemicals Plant

Dutch circular chemistry technology developer BioBTX is building what it says will be the world’s first commercial-scale plant to convert mixed plastic waste into high-quality aromatic chemicals using its proprietary Integrated Catalytic Cracking Process (ICCP) technology.The facility will be built at Chemical Park Delfzijl on the northern coast of the Netherlands and is expected to create 35 jobs. Covestro, which has been a shareholder and strategic partner of BioBTX since 2024, holds a mid-single-digit million-euro investment in the company.BioBTX’s ICCP technology uses catalytic pyrolys..

Next Story
Real Estate

Awfis Q1 FY27 PAT Jumps 140% as Revenue Rises 27%

Awfis Space Solutions reported a 140 per cent year-on-year rise in consolidated profit after tax (PAT) to Rs 240 million for Q1 FY27, compared with Rs 100 million in the corresponding quarter last year.Revenue from operations increased 27 per cent to Rs 4.25 billion from Rs 3.35 billion, while EBITDA rose 28 per cent to Rs 1.62 billion. EBITDA margin improved to 38.2 per cent from 37.8 per cent. Profit before tax increased 135 per cent to Rs 240 million.The company's co-working business recorded 27 per cent year-on-year growth, supported by demand from enterprises, Global Capability Centres (G..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement