15th Finance Commission Allocates ₹8,000 Crore for Incubation of Eight New Cities
The 15th Finance Commission (15th FC) has announced an allocation of ₹8,000 crore as a performance-based challenge fund aimed at the incubation of eight new cities. This initiative focuses on urban development and is designed to enhance infrastructure and living conditions in chosen areas. However, it is important to note that the 15th FC has yet to specify which cities will benefit from this funding. The allocation reflects the commission’s commitment to improving urban growth and addressing challenges faced by emerging urban centers. Further details are expected as the implementation process unfolds.
GOVERNMENT OF INDIA
MINISTRY OF HOUSING AND URBAN AFFAIRS
RAJYA SABHA
UNSTARRED QUESTION NO. 846
ANSWERED ON 28/07/2025
GREENFIELD CITIES IDENTIFIED BY THE 15TH FINANCE COMMISSION
846. SHRI YERRAM VENKATA SUBBA REDDY:
Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state:
(a) details of 8 Greenfield cities identified by the 15th Finance Commission;
(b) whether it is a fact that the 15FC has also recommended ₹ 8,000 crores for the above cities;
(c) whether it is also a fact that 28 proposals have been received from various States for incubation of new cities;
(d) if so, the details of proposals received from each State, State-wise;
(e) whether it a fact that Kopparthi has been identified by State Government of Andhra Pradesh to develop as Greenfield City; and
(f) if so, the status of the above (e) proposal?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN AFFAIRS
(SHRI TOKHAN SAHU)
(a) & (b): 15th Finance Commission (15th FC) has allocated ₹8,000 crore as performance based challenge fund for incubation of eight new cities. However, the 15th FC has not identified specific cities in this regard.
(c) & (d): A total of 28 proposals from 23 States have been received. The State-wise details of the cities are at Annexure.
(e) & (f): Kopparthi has been proposed to be developed as a Greenfield City by the Government of Andhra Pradesh. All the proposals, including the proposal relating to Kopparthi, are under examination.
ANNEXURE
ANNEXURE REFERRED TO IN REPLY TO PART (C) & (D) IN RESPECT OF RAJYA SABHA UNSTARRED QUESTION NO. 846 FOR REPLY ON 28.07.2025 REGARDING GREENFIELD CITIES IDENTIFIED BY THE 15TH FINANCE COMMISSION BY SHRI YERRAM VENKATA SUBBA REDDY
List of proposals from States on Incubation of New Cities
|
S.No. |
Name of State | Proposal for new city | District/ region |
| 1 | Andhra Pradesh | Kopparthi | YSR District |
| 2 | Arunachal Pradesh | Gumin Nagar | East Siang |
| 3 | Assam | Jagiroad | Morigaon |
| 4 | Goa | New MOPA Ayush City, Pernem | North Goa |
| 5 | Gujarat | GIFT city expansion | Gandhinagar |
| 6 | Ambaji | Banaskantha | |
| 7 | Haryana | Gurugram | Gurugram |
| 8 | Himachal Pradesh | Mountain Township | Shimla |
| 9 | Jharkhand | New Ranchi City | Ranchi |
| 10 | Kerala | Aerocity, | Kannur |
| 11 | OAGC Neopolis – The New City, Pallipuram | Ernakulam | |
| 12 | Madhya Pradesh | Jabalpur Extension | Jabalpur |
| 13 | Pithampur phase 4 | Dhar | |
| 14 | Maharashtra | Virul | Wardha |
| 15 | Savargaon Mal | Buldhana | |
| 16 | Manipur | Gateway City | Imphal |
| 17 | Meghalaya | New Shillong Knowledge City | East Khasi Hills |
| 18 | Mizoram | Tanhril Local Council | Aizawl |
| 19 | Nagaland | Chhathe Valley | Chümoukedima |
| 20 | Odisha | Bhubaneswar | Bhubaneswar |
| 21 | Punjab | Aerotropolis | Mohali |
| 22 | Rajasthan | GFC-Ranpur | Kota |
| 23 | Sikkim | Pakyong | Pakyong |
| 24 | Tamil Nadu | Thirumazhisai | Thiruvallur |
| 25 | Uttar Pradesh | Ayodhya | Ayodhya |
| 26 | Uttarakhand | Doiwala | Dehradun |
| 27 | Prag Farm Township | Uddham Singh Nagar | |
| 28 | West Bengal | Bantala Greenfield City,
Karmadiganta |
South 24 Parganas |
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