The Union Housing and Urban Affairs Ministry (MoHUA) has received 26 proposals from 21 states, to develop new cities to meet the demand for urban expansion in the country.

All these proposals are currently at scrutiny and evaluation stage, Rajya Sabha was told on Monday (27 March).

The 15th Finance Commission has allocated Rs 8,000 crore for a performance-based challenge fund, for incubation of eight new cities and the amount available for each proposed new city is Rs 1,000 crore.

A state can have only one new city through this fund. Thus, a maximum of nine new cities in nine states can be selected, as per the Ministry.

Considering the small urban population in north-east and hill states, Rs 1,000 crore for two new cities (Rs 500 crore each) for two different states has also been proposed.

The Ministry has specified minimum eligibility conditions and bid parameters for the states to compete in the challenge. The last date to receive bids from states was 20 January, 2023.

A total 26 proposals from 21 states including Uttar Pradesh, have been received by the last date. These proposals are undergoing scrutiny and are at evaluation stage.

Proposals received for incubation of new cities include:

Ayodhya (Uttar Pradesh), Jagiroad (Assam), New MOPA Ayush City, Pernem (Goa), GIFT city expansion (Gujarat), Pakyong (Sikkim), Thirumazhisai (Tamil Nadu), Bantala Greenfield City, Karmadiganta (West Bengal), Jabalpur Extension (Madhya Pradesh), Virul (Maharashtra), and Aerocity (Kerala), New Ranchi City (Jharkhand), Mountain Township (Himachal Pradesh), Gurugram (Haryana), Kopparthay (Andhra Pradesh) and Gumin Nagar, Pasighat (Arunachal Pradesh), Bhubaneswar (Odisha), Aerotropolis (Punjab), GFC-Ranpur (Rajasthan), Nagaki Global City (Nagaland), YaithibiLokul (Manipur) and Doiwala (Uttarakhand).