30 October 2026
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Chhattisgarh Forms Panel to Develop Villages Near Major Cities Under 16th Finance Commission Plan

Chhattisgarh has formed a six-member committee to prepare a three-year transition plan for integrating eligible villages near major cities into urban local bodies under the 16th Finance Commission’s urbanisation premium scheme.
Indian Masterminds Stories

Raipur: The Chhattisgarh government has constituted a six-member state-level committee to prepare a development plan for eligible villages located near major cities, under the urbanisation premium component of the Sixteenth Finance Commission.

The initiative aims to facilitate the transition of selected peri-urban villages into adjoining urban local bodies and plan the administrative changes and civic infrastructure required for their integration.

According to the reported plan, a three-year transition programme will be prepared to guide the process. The committee will identify eligible urban local bodies and nearby villages, assess their requirements and develop a roadmap in accordance with the Centre’s prescribed conditions.

₹2,000 Per Capita Grant Linked to Village Integration

The urbanisation premium component provides for a one-time eligibility amount of ₹2,000 per person, calculated using the 2011 Census population. However, this is not a scheme under which every resident will receive ₹2,000 directly.

Read Also: Chhattisgarh Revises Land Development Rules, Restricts Polluting Industries in Residential Areas

Under the Sixteenth Finance Commission’s recommendations, the grant is intended to support states in merging eligible peri-urban villages into adjoining urban local bodies with an existing population of at least one lakh and formulating an appropriate rural-to-urban transition policy.

The proposed initiative in Chhattisgarh will focus on identifying villages that qualify under the applicable conditions and preparing plans for their integration with urban administration.

Three-Year Plan to Cover Administration and Civic Facilities

The state-level committee will prepare a three-year transition plan covering the administrative and infrastructure requirements of the selected areas.

Its responsibilities include:

  • Identifying eligible areas: Assessing urban local bodies with populations of one lakh or more and the surrounding villages that may qualify for inclusion.
  • Transferring records and assets: Preparing procedures for transferring relevant assets, official records and responsibilities from gram panchayats to urban local bodies.
  • Planning civic infrastructure: Drawing up plans for basic facilities in newly integrated areas, according to local requirements and approved proposals.
  • Addressing administrative changes: Examining the implications of bringing the selected villages under urban governance, including matters relating to taxation.

The reported plan identifies facilities such as drinking water supply, drainage, street lighting and waste management as areas for attention. The actual works will depend on the approved transition plan, applicable conditions and available resources.

Six-Member Committee to Oversee Planning

The Urban Administration and Development Department has constituted a six-member committee to coordinate the exercise.

The Additional Director of Urban Administration and Development will chair the committee. Its members include the department’s Chief Engineer, Joint Director, Deputy Director (Miscellaneous Branch) and the Superintending Engineer of the State Urban Development Agency (SUDA). An Executive Engineer will serve as Member Secretary.

The committee will be responsible for identifying eligible urban local bodies and surrounding villages, preparing the transition plan and ensuring compliance with the conditions prescribed by the Central Government.

The Sixteenth Finance Commission’s award period runs from 2026–27 to 2030–31. Chhattisgarh’s initiative is intended to prepare eligible areas for a planned transition from rural to urban administration under the commission’s urbanisation premium framework.

Read Also: Chhattisgarh Gets ₹11,664 Crore RLB Grant Recommendation Under 16th Finance Commission


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