The Budget proposes mapping City Economic Regions based on specific growth drivers to amplify the economic potential of urban agglomerations.
An allocation of ₹5,000 crore per region over five years has been proposed to implement development plans through a challenge mode supported by reform-cum-results-based financing.
The focus will extend to Tier II and Tier III cities as well as temple towns requiring modern infrastructure and basic amenities.
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The initiative aligns with the government’s broader strategy of developing infrastructure in cities with populations above 5 lakh.
Separately, the Purvodaya programme will support development of an Integrated East Coast Industrial Corridor.
By linking urban financing with regional growth planning, the proposal introduces a structured framework for city-level infrastructure expansion.
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