UP Unveils ₹2,900 Crore ‘Navayug Palika Yojana’ for Smaller Towns | 18 Apr 2026

Why in News? 

The Uttar Pradesh government has announced an ambitious ₹2,915 crore urban development blueprint titled the ‘Navayug Palika Yojana’. The initiative is designed to upgrade infrastructure in smaller cities and towns, replicating the success of the Smart Cities Mission in Tier-II and Tier-III urban centres.  

Key Points: 

• Total Investment: Over ₹2,915 crore to be invested over a five-year period until 2029–30. 
• Annual Expenditure: An estimated ₹583 crore will be spent annually on planned urban development. 
  • Funding Model: The scheme will be entirely funded by the state government from its own resources, without any financial contribution from the Centre.  
• Scope and Target Areas: The roadmap targets urban local bodies (ULBs) across 58 district headquarters that fall outside the 17 major municipal corporations. 
  • Urban Settlements: It focuses on upgrading towns managed by municipal councils (nagar palikas) and town councils (nagar panchayats) to match the standards of larger metro cities. 
  • New Townships: Parallel to this, the state plans to develop 100 new townships across 75 districts to decentralise urban growth.  
• Smart Infrastructure: Equipping smaller towns with modern roads, improved drainage systems, and smart street lighting. 
  • Digital Governance: Promoting e-services and digitally enabled governance platforms to make citizen services more transparent and efficient. 
  • Quality of Life: Enhancing the "ease of living" by providing clean water supply and effective waste management systems.  
• Strategic Objectives:The plan aligns with UP’s long-term goal of becoming a $1 trillion economy by stimulating local economic activity and attracting investment. 
• Balanced Urbanisation: By creating future-ready urban ecosystems in smaller hubs, the government aims to reduce migration pressure on major metropolitan centres. 
• Reducing Regional Disparities: The initiative seeks to ensure development benefits extend beyond established hubs to foster inclusive growth across the state.