Ujjain’s pilgrim crowds could double — the funding trick paying for it

Ujjain’s daily pilgrim footfall could climb from around two lakh to four lakh under a redevelopment plan the Madhya Pradesh government is preparing to fund with India’s first “temple bonds.” The state presented the proposal to the Urban Development and Housing Department in New Delhi this week, under the Centre’s Urban Challenge Fund, ahead of the Simhastha 2028 gathering.

The project, valued at Rs 1,124.52 crore, will not lean primarily on state budget support. Instead, a Rs 281.13-crore central grant will be combined with Rs 200 crore raised via municipal bonds and a Rs 643.39-crore term loan from a nationalised bank, with the bond-and-loan portion together reaching Rs 843.39 crore — to be repaid from revenue the redeveloped temple sites themselves generate.

That revenue will come from commercial shops, parking facilities, entry charges and other visitor amenities built around 11 major religious destinations beyond the Mahakaleshwar temple, among them Kal Bhairav, Mangalnath, Sandipani Ashram, Navgrah Mandir, the 84 Mahadev circuit, Angareshwar, Bhukhi Mata, Gadkalika Mata, Siddhavat and Baglamukhi.

A tripartite agreement between the Ujjain Development Authority, the temple trusts and the state’s Dharmasva department will set aside 80% of that revenue in an escrow account to service the debt, with the remaining 20% going toward temple operations and maintenance. “The objective is to create a sustainable pilgrimage economy, improve visitor experience and boost economic activity while preserving Ujjain’s heritage,” said Sanjay Dubey, additional chief secretary of the urban development and housing department.

The redevelopment also includes heritage conservation, tourism circuits, 8-10 km of Shipra riverfront and ghat development, sewerage and solid waste management, and 15,000-25,000 sq ft of commercial space planned around each temple. Officials estimate the work could create 8,000-10,000 direct jobs while lifting business for hotels, restaurants and transport operators.

Tenders for all 11 components have been floated, with work orders already issued for four of them; the remaining contracts are expected by the end of July. The municipal bond issue itself is targeted for launch in September, subject to regulatory approval.

Wikimedia Commons/by LRBurdak