Lucknow, October 9, 2026: At a Cabinet meeting chaired by Chief Minister Yogi Adityanath, the Cabinet took an important decision on the state's comprehensive, planned development of new cities. The Cabinet approved releasing the first instalment of ₹115 crore for projects by the Mirzapur-Vindhyachal and Muzaffarnagar Development Authorities under the Chief Minister’s Urban Expansion/New City Promotion Scheme.
Funding For New City Projects
The government has allocated ₹3,500 crore for the comprehensive and appropriate development of new cities in the financial year 2026-27. As per the Cabinet’s decision, the government has approved seed capital of up to ₹164.87 crore for projects by the Mirzapur-Vindhyachal and Muzaffarnagar Development Authorities. The government has approved the proposal to grant financial approval and release ₹115 crore as the first instalment.
Scheme Aims At Planned Urban Growth
The scheme aims to ensure planned, organised urban development while providing better housing for the growing urban population. The government implemented the scheme on April 6, 2023.
Under the scheme, the state government may provide up to 50 per cent of the expenditure incurred on land acquisition for the development of new cities as seed capital. This assistance may be provided for up to 20 years.
