8,000 new jobs, one temple economy: inside Ujjain’s Rs 1,124 crore plan

A Rs 1,124.52-crore redevelopment of Ujjain’s temple ecosystem is projected to create 8,000-10,000 direct jobs, according to the plan Madhya Pradesh presented to the Urban Development and Housing Department in New Delhi this week. The project will be funded in part through what officials describe as India’s first “temple bonds.”

Rather than depending mainly on government budgets, the financing model will repay a Rs 200-crore municipal bond issue and a Rs 643.39-crore term loan from a nationalised bank using revenue generated by the redeveloped temple sites themselves — commercial shops, parking facilities, entry charges and other visitor income. A Rs 281.13-crore central grant, sanctioned under the Centre’s Urban Challenge Fund, covers the rest.

The Ujjain Development Authority will manage debt servicing under a tripartite agreement with the temple trusts and the state’s Dharmasva department, which will direct 80% of project-linked temple revenue into an escrow account, keeping the remaining 20% for temple operations and maintenance.

Beyond the jobs projection, officials expect the redevelopment to boost business for hotels, restaurants and transport operators as daily pilgrim footfall across the temple circuit rises from around two lakh to four lakh. The plan includes 15,000-25,000 sq ft of new commercial space around each temple and multi-level parking facilities.

The redevelopment covers 11 major religious destinations beyond the Mahakaleshwar temple — including Kal Bhairav, Mangalnath, Sandipani Ashram, Navgrah Mandir and the 84 Mahadev circuit — along with heritage conservation, tourism circuits and 8-10 km of Shipra riverfront and ghat development ahead of Simhastha 2028.

“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. Tenders for all 11 components have been floated, with work orders issued for four; the municipal bond issue is targeted for a September launch, subject to regulatory approval.

Wikimedia Commons/by LRBurdak