Gujarat plans ₹11,000 crore investment to boost smart city initiatives.

Prime Minister Narendra Modi is scheduled to visit Gujarat on March 31, during which he will inaugurate and lay foundation stones for multiple urban development projects across the state.

Gujarat’s journey in urban development dates back to 2005, when Modi, then Chief Minister, declared it the ‘Urban Year’ to prioritise infrastructure in cities. Two decades later, under Chief Minister Bhupendra Patel, the state is marking 2025 as the ‘Urban Development Year’ to accelerate world-class city development initiatives.

Transport and Connectivity Projects

The state has strengthened its transport network with extensive road, rail, airport, and port development. Overbridges and underbridges are being constructed in major cities — Ahmedabad, Rajkot, Vadodara, and Surat — to improve traffic flow. Key projects include the Jamnagar-Bathinda Highway, Vadodara-Mumbai Expressway, Porbandar-Dwarka National Highway, and two greenfield expressways: the 430 km Namoshakti Expressway (Deesa–Pipavav) and the 680 km Somnath-Dwarka Expressway.

The Sudarshan Setu bridge, connecting Dwarka and Beyt Dwarka, has been inaugurated, along with approach roads and parking facilities. Metro rail services in Ahmedabad and Surat are expanding, with Phase 2 of Ahmedabad Metro completed and 24 trainsets ordered for Surat Metro. India’s first bullet train and Vande Bharat Express services are also progressing, alongside redevelopment of 89 railway stations under the Amrit Bharat Station Scheme.

In aviation, a greenfield airport at Hirasar, Rajkot, and the operational Surat International Airport, along with regional UDAN airports in Bhavnagar, Jamnagar, Kandla, Keshod, Mundra, and Porbandar, have enhanced air connectivity in the state.

Urban Infrastructure and Housing

Under the AMRUT and AMRUT 2.0 schemes, Gujarat has implemented water supply projects worth ₹630.39 crore for 82,328 households, and sewerage projects worth ₹575.58 crore covering 24,206 households. The projects have added 67 MLD of sewage treatment capacity and 113.31 km of new sewer lines.

Six cities — Ahmedabad, Surat, Vadodara, Rajkot, Gandhinagar, and Dahod — have seen 359 Smart City Mission projects worth over ₹11,507 crore, with 357 completed and two nearing completion.

Under the Pradhan Mantri Awas Yojana (Urban), Gujarat has built 9,19,204 homes for economically weaker and lower-middle-class families. The Lighthouse Project in Rajkot constructed 1,144 homes using monolithic concrete technology. The recently announced PMAY (Urban) 2.0 has approved over 1 lakh more houses.

Urban Governance and Budget Allocation

Nine municipalities have been upgraded to municipal corporations, raising the total in the state to 17, providing better urban governance and improved civic services.

For FY27, the Urban Development and Urban Housing Department has been allocated ₹33,504 crore, including ₹16,116 crore for the Swarnim Jayanti Mukhyamantri Urban Development Scheme, a 17% increase over the previous year. This includes development of Ahmedabad and other cities as ‘Olympic-ready’ for the 2030 Commonwealth Games, with ₹1,278 crore earmarked for international-standard sports complexes, stadiums, and public transport infrastructure.

Additional budget provisions cover water supply, drainage systems, lake development, metro expansion in Ahmedabad and Surat, projects under the Gujarat Metro Rail Project, and Swachh Bharat Mission (Urban), reflecting a comprehensive push for modern, sustainable, and citizen-friendly urban infrastructure in Gujarat.