Chief Secretary V.C. Pharka presided over a meeting of the state-level steering committee that approved the proposals submitted by the Shimla Municipal Corporation, an official statement said.
As much as Rs 1,252 crore is proposed to be spent for re-development of Lower Bazaar, Sabzi Mandi, Ganj Bazar and Krishnanagar area, where space will be made available for construction of hotels and commercial areas.
The entire road network in the city will be given a new look through widening and strengthening of existing roads.
A sum of Rs 1,280 crore will be spent for retrofitting of circular roads and three transit corridors in the state capital.
The proposal includes spending Rs 197 crore on traffic management, citizen security, installation of closed-circuit television, wi-fi and improvement in public transport.
Planned for a maximum of 16,000 residents during the British Raj, Shimla is now home to 170,000 people.
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