Uttar Pradesh government plans to upgrade traffic and transportation facilities in Lucknow, Kanpur, Allahabad, Varanasi, Agra, Meerut and Mathura.
As part of the measures, the government would raise renewal fee for driving licences, registration of both two and four-wheelers, congestion fee and a green tax.
The state government would also levy additional taxes on both the state and city level for setting up a Dedicated Urban Transport Fund (DUTF). Chief secretary Jawed Usmani, who heads the recently constituted Unified Metropolitan Transport Authority (UMTC), is expected to announce these measures on September 3.
At the city level, funds for the DUTF were to be raised from parking fee, property development tax and employment tax.
A proposal to levy surcharge and cess on petrol and diesel in cities was turned down in the last meeting, said an official of the urban development department.
The union ministry of urban development has suggested formation of a coordinated mechanism for improving the transport infrastructure in cities that have a population over 10 lakh. They are also willing to sanction funds for such projects under the Urban Infrastructure and Governance (UIG) head of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) plan, media reports quoted unnamed government officials as saying.