The BJP-dominated Uttar Pradesh government has decided to declare the land around the national capital as an economy stimulus project, a senior official said on Friday.
The announcement will be made in a public meeting of the state assembly, he said, as the state government is in the process of setting up a land tax and infrastructure development programme.
The state government will also set up a tax department to collect taxes from the owners of land in the city, and will set up an authority to enforce the tax.
The authority will be headed by a former finance minister of the previous government.
The land will be declared as an incentive for the development of the city.
The development of infrastructure in the capital is also on the agenda, he added.
The government is also planning to set up roads in the area.