UP’s Township Policy 2023 To Offer Land Use Incentives To Fuel Planned City Development In The State


In an effort to foster planned urbanisation and attract investments, the Uttar Pradesh government has decided to grant several incentives to developers with the state’s New Township Policy 2023.

This policy aims to further offer affordable housing, regulate unplanned expansion in peripheries, and enhance the overall quality of urban life.

Finance Minister Suresh Khanna had previously emphasised that the Yogi Adityanath government has consistently shown support for urbanisation, and these decisions align with their continuous efforts in this direction.

Relief In The Form Of Reductions In The Conversion Fee

As per the policy guidelines, developers who invest in the state will be entitled to a reduction in the conversion fee for land use.

For townships developed in areas with a population of more than 5 lakh but less than 10 lakh, a 25 per cent rebate in the conversion fee will be applicable. For areas with a population of less than 5 lakh, the reduction could go as high as 50 per cent.

Additionally, private developers will be eligible to partake in township development projects.

As per the statement released by the state government, the policy outlines that if a township’s land area is below 50 acres, it will be exclusively designated for residential purposes.

For townships with a land area of 50 acres or more, it will have the option to utilise the land for agricultural purposes as well, subject to the necessary procedures for converting it into residential land, according to several reports.

Land designated for non-residential purposes, excluding major development projects, will be exempt from the conversion fee. Instead, such designated non-residential land will be considered for swapping within the plan.

The UP government will also allow facility of foreign direct investment (FDI) in consonance with the FDI policy of Indian government’s Ministry of Commerce and Department for Promotion of Industry and Internal Trade, said a senior state government official.

Policy To Encourage Planned City Development

The Uttar Pradesh Township Policy 2023 was approved in June 2023 and aims to boost private investment and provide modern township amenities to the public.

According to this policy, colonies can be established on plots up to 12.5 acres in towns with a population below 2.5 lakh, while larger cities can have townships spread across 25 acres.

The policy aims to create modern townships with improved civic amenities, encouraging planned development and private sector employment opportunities.

It sets clear responsibilities for developers and development authorities, with penalties and property confiscation for rule violations.

The townships will include a 10 per cent reservation each for the economically weaker section (EWS) and low-income group (LIG).

Furthermore, the policy will establish a green channel for project-related approvals, streamlining the process through a ‘single window system’ for issuing all approvals and objections.