31 October 2026
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Gujarat Govt Approves ₹100-Crore Urban Transport Fund to Ease Traffic in Ahmedabad and Surat

UTF under UMTA will boost last-mile connectivity, multi-modal integration, and public transport usage through sustainable urban mobility projects.
Indian Masterminds Stories

Ahmedabad: To address growing traffic congestion and urban mobility challenges in Ahmedabad and Surat, the Gujarat government has approved the establishment of an Urban Transport Fund (UTF) under the Unified Metropolitan Transport Authority (UMTA). The fund will begin with an initial seed funding of ₹100 crore.

Decision Taken at First UMTA Meeting

According to official sources, the decision was taken during the first meeting of UMTA, chaired by the Chief Secretary of Gujarat. The meeting was attended by the Principal Secretary (Urban Development) and senior officials from Ahmedabad and Surat, where key traffic and public transport challenges in the two cities were discussed.

Read also: Gujarat Government to Build 2,666 Gram Panchayat Buildings at ₹663 Crore to Boost Rural Infrastructure

Aligned with National Transport Policies

The move is in line with the National Urban Transport Policy, 2006 and the Metro Rail Policy, 2017. The state government had earlier constituted UMTA for Ahmedabad and Surat to strengthen urban mobility governance and ensure coordinated planning across transport agencies.

To ensure sustainable and structured financing for urban transport initiatives, the UMTA committee approved the creation of a dedicated UTF.

Focus on Last-Mile Connectivity and Multi-Modal Integration

The Urban Transport Fund will support:

  • Last-mile connectivity improvements
  • Seamless multi-modal integration
  • Reduced dependence on private vehicles
  • Increased public transport usage

As part of the plan, Multi-Modal Transport Hubs (MMTHs) will be developed and connected with intra-city transport through integrated transfer facilities at strategically identified locations on city peripheries and other key nodes. These hubs are expected to help reduce traffic congestion within city limits.

Wide Range of Urban Mobility Projects

Officials said the UTF will finance the planning, development, operation, and maintenance of urban transport systems, including:

  • Multi-modal transport hubs
  • Integrated fare systems
  • Comprehensive mobility planning
  • Traffic signal upgrades and junction improvements
  • Footpaths, cycle tracks, and pedestrian zones
  • Adaptive traffic signal systems
  • Expansion of public transport and electric buses

Sustainable Financing Through Innovative Revenue Sources

The fund will be strengthened through innovative revenue sources, ensuring long-term sustainability of urban transport financing in Gujarat. The initiative is expected to significantly improve urban mobility, reduce congestion, and promote environmentally sustainable transport solutions in Ahmedabad and Surat.

Read also: Gujarat Government to Deregulate NA Certificate Requirement for Projects Under TP Schemes


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