The Uttar Pradesh government has announced an ambitious Rs 2,900 crore blueprint to upgrade smaller towns with modern infrastructure. This will bring balanced urban growth across the state. The initiative seeks to replicate the success of the Smart Cities Mission India in Tier II and III towns and aims for improved ease of living and digital governance. The proposed scheme, titled ‘Navayug Palika Yojana’, will be entirely funded by the state without any financial support from the Centre. According to officials, the government plans to invest over Rs 2,915 crore over five years until 2029-30, with an annual outlay of around Rs. 583 crore.
The roadmap targets towns that are governed by urban local bodies across 58 district headquarters, especially those outside major municipal corporations. While metro cities in Uttar Pradesh are managed by 17 municipal corporations. This initiative will bring similar development standards to smaller municipalities.
Under the plan, these towns will be equipped with:
- Smart and modern urban infrastructure
- Improved civic amenities
- Better urban planning systems
Officials say the goal is to create a well-organised urban ecosystem that improves daily life for citizens. A key pillar of the scheme is the introduction of digital governance and e-services. The government plans to integrate technology into municipal operations to ensure:
- Faster delivery of public services
- Greater transparency
- Efficient grievance redressal
100 new townships planned
The state has set a target to develop 100 new townships across 75 districts. This is expected to significantly boost housing, infrastructure, and employment opportunities. This is the right time because Uttar Pradesh is witnessing rapid infrastructure growth through expressways and emerging urban centres. These developments are already strengthening the real estate sector and attracting private investment. Experts believe the initiative will have a multiplier effect on the economy. Improved infrastructure in smaller towns is likely to:
- Reduce migration pressure on big cities
- Promote regional economic activity
- Encourage investment in sectors like SMEs, education and BFSI
Many have also credited Uttar Pradesh’s policy framework for creating a favourable business environment, supporting the state’s ambition to become a $1 trillion economy by 2030. One of the core objectives of the scheme is to bridge the development gap between large cities and smaller towns. By strengthening district headquarters, the government is planning to ensure more uniform growth across regions. Urban bodies have been categorised based on population above and below 1.5 lakh to tailor development strategies according to local needs.
As per officials, all proposed projects will be evaluated by a state-level technical committee before the approval. A. K. Sharma reaffirmed the Uttar Pradesh government’s commitment to holistic and balanced urban development. He said that this plan will play a key role in reshaping Uttar Pradesh’s urban landscape.

















