India’s first ‘temple bonds’ just landed in Ujjain — here’s how they work

The Madhya Pradesh government is preparing to launch what officials are calling the country’s first “temple bonds,” a financing tool designed to redevelop major religious sites in Ujjain ahead of the Simhastha 2028 gathering. Unlike typical infrastructure funding that leans on government budgets, this model will repay investors and a lending bank using revenue generated directly from the redeveloped temple ecosystem itself.

The plan was presented this week to the Urban Development and Housing Department in New Delhi under the Centre’s Urban Challenge Fund. It covers the Rs 1,124.52-crore Integrated Temple Ecosystem Development project, which will be funded through a Rs 281.13-crore central grant, Rs 200 crore raised via municipal bonds, and a Rs 643.39-crore term loan from a nationalised bank — together making the bond and loan portion Rs 843.39 crore.

“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 state’s urban development and housing department. He added that the goal is to build a sustainable pilgrimage economy while preserving Ujjain’s heritage.

Under the plan, the Ujjain Development Authority will service the debt through income from commercial shops, parking, entry fees and other project-linked sources, rather than routine government funding. A tripartite agreement between the UDA, the temple trusts and the Dharmasva department will direct 80% of revenue from participating temple projects into an escrow account for debt servicing, with the remaining 20% kept for temple operations and maintenance.

The redevelopment spans 11 major religious destinations beyond the Mahakaleshwar temple, including Kal Bhairav, Mangalnath, Sandipani Ashram, Navgrah Mandir, the 84 Mahadev circuit, Angareshwar, Bhukhi Mata, Gadkalika Mata, Siddhavat and Baglamukhi temples, along with redevelopment behind the PM Ekta Mall. It also includes heritage conservation, tourism circuits, and 8-10 km of Shipra riverfront and ghat development.

Officials project the project will lift daily pilgrim footfall across the temple circuit from around two lakh to four lakh, while creating 15,000-25,000 sq ft of commercial space around each temple. The plan estimates 8,000-10,000 direct jobs, with tenders floated for all 11 projects and work orders already issued for four; the municipal bond issue is targeted for launch in September, pending regulatory approval.

Wikimedia Commons/by LRBurdak