Rs 1,124 crore, 11 temples, zero routine funding: Ujjain’s new bond bet

Madhya Pradesh’s Urban Development and Housing Department has presented a financing plan built around India’s first “temple bonds” — a way to fund a Rs 1,124.52-crore redevelopment of Ujjain’s temple ecosystem without depending mainly on state budget allocations. The proposal was tabled in New Delhi this week under the Centre’s Urban Challenge Fund.

The numbers break down as follows: a Rs 281.13-crore central grant, Rs 200 crore raised through municipal bonds, and a Rs 643.39-crore term loan from a nationalised bank, with the bond and loan components together totalling Rs 843.39 crore. Officials describe it as the country’s first revenue-backed financing model for a temple redevelopment project.

Instead of relying on routine government funding, the plan directs the Ujjain Development Authority to repay the debt using income streams generated around the redeveloped temples — commercial shop rents, parking fees, entry charges and other visitor-linked revenue. A tripartite agreement between the UDA, temple trusts and the state’s Dharmasva department will route 80% of that revenue into an escrow account earmarked for debt servicing, leaving 20% for temple upkeep.

Sanjay Dubey, additional chief secretary of the urban development and housing department, said the structure is meant to “create a sustainable pilgrimage economy, improve visitor experience and boost economic activity while preserving Ujjain’s heritage.” The redevelopment ahead of Simhastha 2028 will touch 11 religious sites, including Kal Bhairav, Mangalnath, Sandipani Ashram, Navgrah Mandir, the 84 Mahadev circuit, and the area behind the PM Ekta Mall.

Beyond temple structures, the plan covers heritage conservation, tourism circuits, sewerage and solid waste management, and 8-10 km of Shipra riverfront and ghat development, alongside multi-level parking and 15,000-25,000 sq ft of new commercial space at each site. Planners expect daily pilgrim footfall to climb from roughly two lakh to four lakh.

Tenders for all 11 components have already been floated, with work orders issued for four of them; the rest are expected to be awarded by the end of July. The municipal bond issue itself is targeted for a September launch, subject to regulatory clearance, and the broader project is projected to generate 8,000-10,000 direct jobs.

Wikimedia Commons/by LRBurdak