The priorities were identified after getting feedback and suggestions from nearly 1 lakh people.
The proposals were approved by the State-Level High Powered Screening Committee that met here under the chairmanship of Chief Secretary V C Pharka today.
He said out of the Rs 2,906 crore, Rs 1,252 crore will be spent on re-development of the Lower Bazaar, Subzi Mandi, Ganj Bazaar and Krishnanagar area.
Appropriate space will be made available for construction of hotels and commercial establishments, Pharka said.
This includes four roads from Sanjauli to Mashobra, Chotta Shimla to Kasumpti, Circular Road and Old Bus Stand Road.
The proposal includes Rs 197 crore for traffic management, citizen security, and installation of CCTV cameras, Wi-Fi and improvement in public transport, he said.
The Chief Secretary asked officers to create an earthquake resistant model for higher safety.
The officials present at the meeting informed that 15 safe shelters would also be constructed in the city and landslide censors will also be put at vantage points for early warning.
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