UP Government's 2026 Budget Decision on the Meerut New Township (Mohiuddinpur), MEDA

What was decided

Under the Chief Minister Urban Expansion and New City Promotion Scheme, ₹3,500 crore has been proposed in Uttar Pradesh's Budget for the financial year 2026-27, presented in the state Assembly. The Uttar Pradesh government has made provisions for a host of new initiatives across sectors, with an outlay of over ₹43,565 crore in the Budget for the financial year 2026-27 presented in the Assembly, of which the ₹3,500 crore urban-expansion line is one component. New housing schemes will be launched in Meerut after 35 years, in Agra after 33 years, in Lucknow after 22 years, and for the first time in Bulandshahr, the Finance Minister said in his budget speech.

This is a budget-allocation decision, not a fresh land-use notification: it commits state funds to city-level township projects that were already under development, rather than creating a new authority or approving a new master plan on this date.

How the money reaches Meerut's project

The Meerut beneficiary of this budget line is MEDA's integrated township at Mohiuddinpur. Funding for this specific project did not start with the 2026 budget — it has been released to MEDA in tranches since 2024. For this project, agreement was reached to provide Rs 1,258 crore, under which Rs 200 crore was released on January 11, 2024, and Rs 200 crore was released to MEDA on December 27, 2024. Along with this, Rs 403 crore was released to MEDA on March 27, 2025. On this basis, a total of Rs 809 crore had been made available for the project so far.

Other reports around March 2025 referred to a smaller, related release of 409 crore rupees for the township, and a later industry tracker (October 2025) valued the launched project at Rs.2,570 crore. The figures differ because they were captured at different stages of a phased funding and construction process; the FY2026-27 state budget line is the latest, umbrella-level allocation covering Meerut alongside Agra, Lucknow and Bulandshahr.

Operative details: area, phases and villages

The township is being built by the Meerut Development Authority (MEDA) on 294 hectares in Mohiuddinpur along Delhi Road, described elsewhere as roughly 300 hectares. The plan is to develop the township in Phase-1 and Phase-2 form on about 300 hectares along Delhi Road in Mohiuddinpur. The integrated TOD township's two phases have been divided into a total of 31 sectors.

Land is being purchased village by village: in Phase-1, the target is to buy 111 hectares/496 [plots of land] in Mohiuddinpur and 30 hectares/175 in Chhajjupur, while in Phase-2, 130 hectares/730 will be bought in Kayastha Gaongri and 21 hectares/96 in Ikla. As of the February 2026 budget report, land is being purchased on a consent basis from farmers, and about 150 hectares had been acquired so far, which officials said would help move Phase 1 forward.

Planning work has progressed alongside land purchase: the drone survey for Uttar Pradesh's first Integrated Transit-Oriented Development (TOD) Township has been completed, and based on the survey, a detailed layout plan is now being prepared.

What the township will contain

This is designed as a mixed-use, transit-oriented project rather than a purely residential colony. The township will follow a mixed-use model with residential, commercial, and industrial activities on different floors of the same buildings. Officials also plan to include residential plots, parks, roads and a drainage system as part of the infrastructure.

The site's connectivity was cited by MEDA officials as a rationale for the project: the township will be roughly 1.3 km from the Meerut South RRTS station, about 1.5 km from the dedicated freight corridor, close to the Delhi-Meerut Expressway and Haridwar Bypass (about 2 km), around 1.5 km from Mohiuddinpur railway station, about 4 km from Partapur railway station, and about 10 km from Meerut city.

Practical effect of the budget decision

For MEDA, the FY2026-27 allocation is state-level confirmation that seed funding for the Mohiuddinpur township will continue, on top of the tranches already released since January 2024. For residents and prospective buyers, it signals that land assembly and infrastructure work — roads, drainage, sector layout — are treated as an ongoing, funded programme rather than a shelved plan, though as of February 2026 acquisition of the full ~300-hectare footprint was still in progress, with only about half acquired.

For farmers in Mohiuddinpur, Chhajjupur, Kayastha Gaongri and Ikla, the practical effect is continued, staged land purchase under a consent-based process, with compensation paid village-by-village and khasra-by-khasra rather than as a single blanket acquisition.

Status as of the decision date

As of February 2026: the state budget line (Rs 3,500 crore, statewide) has been proposed/approved in the Assembly; MEDA's Mohiuddinpur project has around 150 hectares acquired out of a planned ~300 hectares; a drone survey and layout planning had been completed in the preceding months; and no separate RERA registration, sector-wise plot allotment date, or completion timeline for the Meerut township was confirmed in available reporting. This page will be updated as those milestones are notified.