By Karmrath News Desk
The Madhya Pradesh government has approved a scheme called the Dwarka Nagari Yojana. Its objective is to improve basic infrastructure in the state’s cities. Chief Minister Mohan Yadav reviewed the scheme at the Secretariat on April 22 and directed officials to implement it. The scheme will run for three years, from 2026–27 to 2028–29.
A total of Rs 5,000 crore will be spent on the scheme. Out of this, Rs 2,201.2 crore will be provided by the state government in the form of an interest-free loan, while the remaining Rs 2,798.8 crore will be borrowed from financial institutions.
The money provided by the state government will have to be repaid by the department over 25 years in five equal instalments. The loans given to urban local bodies will have to be repaid with interest over 20 years. Funds collected through stamp duty will be used for repayment.
What the Scheme Includes
The scheme includes housing construction, road repair and development, and strengthening basic urban infrastructure. Each city will receive funds according to its requirements so that it can carry out work at its own level.
The chief minister said that the development of main city roads, cleanliness, and expansion of public facilities should be prioritised under the scheme. He also said that the construction of gaushalas and cremation grounds should be included.
He directed officials to ensure that the work is completed on time, carried out transparently, and maintains high construction quality.
How Funds Will be Raised
Funds for the scheme will be arranged by combining state government support, loans, and a central government scheme. Road projects under city master plans may also be carried out through public-private partnerships.
The scheme may also be linked to the central government’s Urban Challenge Fund, which could provide additional funds if required.
The method of repaying loans through stamp duty collections is considered significant. This revenue comes from land and property transactions. This means the success of the scheme will depend on property buying and selling activity in the coming years. No information has been provided on what will happen if these collections decline.
Who Attended the Meeting
Those present at the meeting included Chief Secretary Anurag Jain, Urban Development Department official Sanjay Dubey, Chief Minister’s Office official Neeraj Mandloi, Finance Secretary Lokesh Jatav, and Urban Administration Commissioner Sanket Bhondve. Other officials were also present.
The chief minister also shared information about the review on social media and said that he reviewed the scheme’s rules and procedures and issued necessary instructions.
Background
Urban local bodies in Madhya Pradesh generally depend on the state and central governments for their expenditure. They have limited independent financial resources. Their own sources of income, such as property tax, fees, and other charges, are not sufficient for large projects.
As a result, schemes like this provide them with greater financial resources and allow long-term repayment. The urban population in the state has grown rapidly, but infrastructure and facilities have not expanded at the same pace.
What Remains to be Seen
The scheme is currently at the stage of finalising rules. It has been announced and reviewed, but implementation has not yet begun.
Proposals have not yet been received from cities, nor have funds been allocated to individual cities. The chief minister has stressed timely work, transparency, and quality.
It now remains to be seen how quickly cities submit proposals, how the funds are spent, and whether the work is completed within the stipulated timeline. This will determine how successful the scheme is on the ground.