In a significant move aimed at bolstering infrastructure development in Uttar Pradesh, the state Cabinet approved the issuance of municipal bonds for the cities of Prayagraj, Varanasi, and Agra. The decision was made during a cabinet meeting chaired by Chief Minister Yogi Adityanath, which took place in the Maha Kumbh Mela area in Prayagraj.

The new initiative will see the issuance of municipal bonds, enabling these cities to raise funds from the market for infrastructure projects. For every billion raised through these bonds, the state government will provide an additional Rs 130 million as a grant, which will be deposited into an escrow account by the Government of India. Municipal bonds of up to Rs 500 million will be issued for each of the three cities.

This initiative will allow the municipalities to access a larger pool of capital, enabling long-term investments in critical infrastructure projects. It follows a similar approach previously undertaken by municipal corporations in Lucknow and Ghaziabad.

In addition to the bond issuance, the Cabinet approved a new residential project in Agra and endorsed the Agra Development Authority's proposal to construct a 100-meter-wide inner ring road. A land parcel scheme for this project was also given the green light. Furthermore, an ex-gratia amount of Rs 2.04 billion was approved to cover the difference between the 2010 circle rate and the current circle rate for 442.4 hectares of land in Agra.

The Cabinet also agreed to amend the notification from the Uttar Pradesh State Industrial Development Authority to separate industrial development areas in the villages of Rahankala and Raipur. These moves are expected to stimulate growth and development across the region.