Lucknow: The Uttar Pradesh Cabinet, chaired by Chief Minister Yogi Adityanath, has approved funding for the development of new cities in Lucknow, Unnao and Rae Bareli under the state’s Mukhyamantri Shahri Vistarikaran or New City Promotion Scheme.
The three development authorities will undertake the projects, including land acquisition and development-related work. The state has released an initial ₹380 crore, while a total allocation of ₹655.7 crore has been approved for the Lucknow, Unnao and Rae Bareli development authorities.
Funding to Support Land Acquisition
Under the scheme, the state government can provide initial capital of up to 50% of the expenditure incurred on land acquisition for new cities.
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The financial assistance can be provided for a period of up to 20 years.
According to the Housing Department, the funding is intended to assist development authorities with land acquisition, development of new cities and residential projects.
Following the Cabinet approval, the concerned development authorities can begin surveys to identify land for the proposed projects.
₹380 Crore Released as First Instalment
The government has approved ₹655.7 crore for the three development authorities, with ₹380 crore released as the first instalment.
The funds will be used by the respective authorities for:
- Land acquisition for proposed new-city projects
- Development-related works
- Residential projects
- Other requirements under the approved scheme
A provision of ₹3,500 crore has also been made for the scheme during the 2026-27 financial year.
New City Projects Around Lucknow
The Lucknow Development Authority is already undertaking several projects along the Mohan Road and other parts of the city.
The source identifies projects including:
- Anant Nagar Township
- Prabandh Nagar
- IT City Corridor
- New Wellness and IT Hub near IIM Road and Sultanpur Road
The Mohan Road scheme covers around 764 acres and is located between the Agra-Lucknow Expressway and the airport.
The state government is also undertaking infrastructure projects in districts around Lucknow under the Uttar Pradesh State Capital Region (UP-SCR). These include projects related to metro and Namo Bharat Rapid Rail connectivity.
The Cabinet decision provides funding support for the proposed new-city projects in Lucknow, Unnao and Rae Bareli, with the development authorities responsible for land identification, acquisition and project implementation.
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