Gujarat budget 2026-27: Govt plans five satellite towns to decongest cities

Ahmedabad: As cities strain under rapid growth, Gujarat unveiled an ambitious urban expansion blueprint in the 2026-27 budget, announcing plans to develop five new satellite towns and roll out a regional rapid transit system (RRTS) to connect them with key urban centres. The proposed growth nodes — Sanand, Kalol, Savli, Bardoli and Hirasar — are intended to ease mounting pressure on major cities and channel expansion in a more planned manner.According to the budget document, these satellite townships will be integrated with nearby metropolitan hubs through the RRTS, with the goal of strengthening daily connectivity and enabling decentralised urban growth. Officials described the strategy as a structural response to rising congestion, surging demand for housing and services, and increasing employment pressures in large cities. By creating new urban clusters near existing economic centres, the state aims to redistribute growth and reduce stress on core city infrastructure.
Beyond expansion, the budget outlines multiple investments to modernise urban management. A provision of Rs 200 crore has been made for smart parking and an integrated traffic management system to improve pedestrian transport efficiency and promote accessible mobility. In addition, Rs 100 crore has been allocated specifically for smart parking in cities and municipalities.To tackle long-standing railway crossing bottlenecks, the state has earmarked Rs 350 crore for the construction of overbridges and underpasses in campaign mode, with the objective of making urban areas railway-crossing-free.In municipal governance and emergency response, Rs 180 crore was earmarked for integrated command and control centres in 12 municipal corporations, strengthening real-time monitoring and coordinated city operations.The budget also reiterates the state's push to make Gujarat dump-free. Officials said more than 253 lakh metric tonnes of legacy waste at dumpsites have already been cleared using scientific methods. Additional urban initiatives include Rs 150 crore to develop sports complexes and sports infrastructure under flyovers in every municipal corporation, and Rs 50 crore for GIS mapping of properties, utilities and major urban projects under the Gujarat Urban Atlas.The budget made provision for Rs 100 crore to develop meeting, incentives, conferences and exhibition infrastructure in Rajkot, Jamnagar, Junagadh and Bhavnagar.