Before Simhastha 2028: Madhya Pradesh bets on ‘temple bonds’ to remake Ujjain

With Simhastha 2028 approaching, the Madhya Pradesh government has drawn up a plan to redevelop Ujjain’s major religious sites using what officials call the country’s first “temple bonds” — a financing tool structured to repay itself through revenue generated at the temples rather than through standard government funding.

The proposal, presented to the Urban Development and Housing Department in New Delhi this week under the Centre’s Urban Challenge Fund, covers the Rs 1,124.52-crore Integrated Temple Ecosystem Development project. It will draw on 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 amounting to Rs 843.39 crore.

The Ujjain Development Authority will be responsible for servicing that debt using income from commercial shops, parking, entry fees and other sources tied to the redeveloped temple areas. A tripartite agreement between the UDA, the participating temple trusts and the state’s Dharmasva department will place 80% of that revenue into an escrow account for debt repayment, with 20% retained for temple operations and maintenance.

“We are raising municipal bonds for the Ujjain temple redevelopment project and introducing a revenue-backed financing model in which project-linked revenues from parking facilities, commercial shops, accommodation and other visitor amenities will support debt servicing,” said Sanjay Dubey, additional chief secretary of the urban development and housing department.

The plan spans 11 religious destinations beyond the Mahakaleshwar temple — including Kal Bhairav, Mangalnath, Sandipani Ashram, Navgrah Mandir and the 84 Mahadev circuit — and covers heritage conservation, tourism circuits, and 8-10 km of Shipra riverfront and ghat development, along with sewerage and civic infrastructure upgrades meant to handle rising pilgrim numbers.

Officials expect daily pilgrim footfall to rise from around two lakh to four lakh and the project to generate 8,000-10,000 direct jobs. Tenders for all 11 components have been floated, with four already issued as work orders and the rest expected by the end of July; the municipal bond issue is targeted for a September launch, subject to regulatory approval.

Wikimedia Commons/by LRBurdak