City economic region to spur urban growth

New delhi: In a major push to strengthen urban growth, the government will set up seven city economic regions (CERs), including in Bengaluru, Surat and Varanasi, with a proposed allocation of Rs 5,000 crore per region over five years. The plans will be implemented in a “challenge mode”. Presenting the Union Budget in the Lok Sabha, Union Finance Minister Nirmala Sitharaman described cities as India’s engines of growth, innovation and opportunity. She added that the new initiative would focus on Tier II and Tier III cities, as well as temple towns, which require modern infrastructure and improved basic amenities. In the Budget 2026-27, the government has proposed over Rs 2,000 crore for two new schemes -- CERs and Regional Medical Hubs. According to the budgetary document, the allocation has been proposed for seven city economic regions -- Bengaluru, Bhubaneshwar-Puri-Cuttack tricities, Coimbatore-Erode-Tiruppur, Pune, Surat, Varanasi and Visakhapatanam.