Gujarat Raises Project Approval Limits for Municipalities

Gujarat CM has raised the approval limits for municipalities by 50% for projects funded under Urban Development Department schemes and the State’s Decentralised District Planning Programme.

By Times News Network On Sep 4, 2025

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Gandhinagar | Gujarat — In line with the Urban Development Year, Gujarat has made a significant decision to accelerate citizen-centric projects carried out by local authorities in urban areas.

Gujarat CM has raised the approval limits for municipalities by 50% for projects funded under Urban Development Department schemes and the State’s Decentralised District Planning Programme.

Marking two decades of progress, CM has declared 2025 as the Urban Development Year to foster smart and sustainable urban growth.

To achieve this goal, the enhanced financial authority limits will help accelerate development works in cities and ensure the quick implementation of urban civic amenities, making the decision highly effective.

For this purpose, CM has raised the approval limit for technical and administrative approvals of development works for ‘A’ category municipalities from ₹50 lakh to ₹70 lakh, an increase of ₹20 lakh.

Additionally, approval limits have been raised: from ₹40 lakh to ₹50 lakh for ‘B’ category municipalities; from ₹30 lakh to ₹40 lakh for ‘C’ category’; and from ₹20 lakh to ₹30 lakh for ‘D’ category municipalities.

CM further directed that once technical and administrative approval is granted by the municipal-level committee, the Regional Municipal Commissioner (RCM) office shall release the grant to the concerned municipality within five days of receiving the proposal.

Furthermore, 100% of such grants will be disbursed in two instalments. This will help prevent delays in commencing development works in municipal areas and ensure optimal utilisation of grants.

Responding positively to the representations made by MLAs of urban areas and office-bearers of local self-government institutions, the CM has increased the financial authority limits.

Chief Minister Bhupendra Patel’s decision will foster planned urban development, realize the vision of “Earning Well – Living Well,” and ensure timely, quality completion of public welfare and other development works in urban areas.