Gujarat Allocates Rs 30,000 Crore for Urban Development
The Gujarat Assembly on Monday passed an ambitious budget for urban development, allocating a record ₹30,325 crore for the financial year 2025-26. This budget represents a 40% increase compared to the previous year’s allocation for the department and underscores the state’s commitment to urban expansion and modernisation. Notably, the government has declared 2025-26 as the “Urban Development Year,” a move that highlights the importance of transforming the state’s urban landscape.
In his address to the Assembly, Urban Development Minister Rushikesh Patel detailed several key initiatives under this budget, signalling the state’s dedication to upgrading its infrastructure, especially in newly established municipal corporations. A significant allocation of ₹450 crore has been earmarked for the enhancement of facilities in these corporations, reflecting the state’s forward-thinking approach towards the development of smaller urban regions. Patel also outlined the government’s decision to increase the assistance provided under the Pradhan Mantri Awas Yojana (PMAY), a national housing initiative aimed at providing affordable housing to the underprivileged. The financial boost to PMAY will see an additional ₹50,000 per house, a move designed to accelerate the completion of housing units and address the growing demand for affordable homes across the state. The budget also placed a strong emphasis on the rapid urban transit projects in Gujarat, particularly the metro rail networks in Ahmedabad and Surat. According to Patel, the Ahmedabad Metro Rail Project Phase-2 is already 78.33% complete, with the remaining work expected to be finished by June 2025. Similarly, the Surat Metro Rail Project, which is in its early stages, has seen 57.20% of its construction completed, with the final phase scheduled for completion by October 2025. These metro projects are expected to alleviate traffic congestion, reduce pollution, and provide efficient public transport options for millions of residents.
A key focus of the budget is the development of cities with historical and religious significance. The Gujarat government has allocated ₹200 crore to improve infrastructure in cities like Dwarka, Somnath, Becharaji, Pavagadh, Siddhpur, Kapadvanj, Patan, and Palitana. These cities, known for their cultural and religious heritage, are poised to receive enhanced facilities and urban amenities, which will cater not only to the growing population but also to the influx of pilgrims and tourists. As Gujarat’s urban centres grow at an unprecedented pace, the state government is prioritising sustainable development, with an eye on creating equitable and inclusive urban spaces. The focus on improving transportation, housing, and infrastructure in historically significant cities demonstrates a broader vision for urban renewal that goes beyond just building new structures. The integration of modern amenities and environmental considerations will be crucial in shaping a future-ready Gujarat that can meet the demands of its expanding population. While the allocation for urban development is substantial, the real test will lie in how effectively these funds are utilised. The completion of metro projects, improvements to municipal infrastructure, and the expansion of housing under PMAY will be critical indicators of the government’s success in realising its vision for a sustainable urban future. Moreover, the state’s ability to integrate green technologies into its urban development plans will be key to ensuring that these growth initiatives align with the larger goals of sustainability and carbon reduction.
In the context of rising urbanisation and the challenges posed by climate change, Gujarat’s enhanced budget for urban development represents a bold step towards creating cities that are not only modern but also sustainable and inclusive. As the government rolls out these initiatives, the spotlight will be on how these ambitious plans are executed to make Gujarat’s cities more livable, equitable, and resilient.
