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Centre issues guidelines for states to tap into ₹18,000 cr for urban planning reforms in FY26

  • The Centre has issued guidelines for states to tap into ₹18,000 crores for urban planning reforms in FY26.
  • States will receive incentives for capital investment based on the recommendations of the Ministry of Housing and Urban Development.
  • 31 states and UTs have been categorized into three groups for effective implementation.
  • The blueprint suggests investing in municipal cadres and digital interventions for improved governance.
  • There is an urgent need to strengthen municipal governance by filling vacant positions and creating new posts.
  • States will be encouraged to establish cadres like Municipal Administrative Service and Municipal Finance Service.
  • The focus is on recruiting specialists for better waste and water management and environmental concerns.
  • An integrated property tax portal with unique IDs and diversifying revenue sources is recommended.
  • GIS-based utility mapping of water, sewerage, and drainage networks for resource management is advised.
  • Only AMRUT cities are eligible for these reforms.
  • States are advised to map municipal assets and leverage land as a resource.
  • Digital twin modelling is recommended for master planning, policy planning, and disaster management.
  • States are encouraged to create a unified ID for property tax, building permissions, and revenue registration portals.
  • Urban land and planning reforms include various schemes like town planning, land pooling, and green city initiatives.
  • The guidelines aim to enhance property tax and stamp duty collections, recovery of dues, and real-time land use information.
  • The reforms focus on conservation, rejuvenation of urban waterbodies, and including green building initiatives in building regulations.

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