Stung by Lok Sabha election debacle, Yogi government adopts course correction with 'locals first' approach in Ayodhya
The government has announced a major policy shift to support local traders affected by the Ram Path project. The new policy allows displaced shopkeepers to acquire 500 new shops through interest-free, long-term instalment plans.

- Jun 17, 2024,
- Updated Jun 17, 2024 5:57 PM IST
Following its debacle in the recently concluded Lok Sabha elections in Uttar Pradesh, the Yogi government has gone for course correction by changing its policy for Ayodhya traders from a business-first approach to prioritising local interests.
According to media reports, the government has announced a major policy shift to support local traders affected by the Ram Path project. The new policy allows displaced shopkeepers to acquire 500 new shops through interest-free, long-term instalment plans.
The BJP, which heavily banked on the Ram Mandir consecraryion in its campaign lost the Faizabad Lok Sabha seat, an area central to its temple politics, to the Samajwadi Party (SP). BJP’s loss in Faizabad has been attributed to the discontent among local shopkeepers.
The party managed to retain hold on only 33 out of 80 seats in Uttar Pradesh with the most surprising loss in Ayodhya where its two-time MP Lallu Singh was defeated by Samajwadi Party’s Awdhesh Prasad due to anger and resentment among local traders, who felt betrayed.
It is being said that many locals, whose shops were demolished for the construction of the Ram Path, expressed their dissatisfaction through their votes.
Many traders and residents feel the compensation they received was grossly inadequate.
Pankaj Gupta, the President of the Ayodhya Dham Vyapar Mandal said that shops were demolished for the widening of the Ram Path, and traders were given merely Rs 1-2 lakh as compensation, which felt more like charity. “As a protest we closed our shops for two days, but no public representative or official addressed our grievances,” he said.
Gupta claimed that before the assembly elections of 2022, the then deputy Chief Minister, Dinesh Sharma, had assured traders that they would receive new shops free of cost in exchange for the demolished ones. However, after the election, traders were given a meagre compensation of Rs 1 lakh and were asked to pay between Rs 20 and Rs 25 lakh for new shops, he added.
Policy shift
The new policy allows displaced shopkeepers to take possession of 500 newly constructed shops on interest-free, long-term instalments. Previously, shopkeepers had to pay upfront to take possession of the shops, which ranged in cost from Rs 20 lakh to Rs 25 lakh. This requirement forced many traders to consider bank loans, making it nearly impossible for them to afford the new shops.
The revised policy, however, allows shopkeepers to pay for their shops over a 20-year period without any interest. The decision has been welcomed by the affected traders.
“The Ayodhya Development Authority (ADA) is now handing over shops without requiring any down payment,” said Ayodhya Divisional Commissioner Gaurav Dayal.
Mohinder Srivastava, a local trader leader, expressed relief over the policy change, and said that it should have been implemented earlier. “After this decision, 150 shopkeepers have already taken possession of their shops,” he said.
The Yogi government’s policy shift in Ayodhya reflects a broader attempt to regain the trust of local communities and address the grievances that contributed to the BJP's recent electoral defeat.
Following its debacle in the recently concluded Lok Sabha elections in Uttar Pradesh, the Yogi government has gone for course correction by changing its policy for Ayodhya traders from a business-first approach to prioritising local interests.
According to media reports, the government has announced a major policy shift to support local traders affected by the Ram Path project. The new policy allows displaced shopkeepers to acquire 500 new shops through interest-free, long-term instalment plans.
The BJP, which heavily banked on the Ram Mandir consecraryion in its campaign lost the Faizabad Lok Sabha seat, an area central to its temple politics, to the Samajwadi Party (SP). BJP’s loss in Faizabad has been attributed to the discontent among local shopkeepers.
The party managed to retain hold on only 33 out of 80 seats in Uttar Pradesh with the most surprising loss in Ayodhya where its two-time MP Lallu Singh was defeated by Samajwadi Party’s Awdhesh Prasad due to anger and resentment among local traders, who felt betrayed.
It is being said that many locals, whose shops were demolished for the construction of the Ram Path, expressed their dissatisfaction through their votes.
Many traders and residents feel the compensation they received was grossly inadequate.
Pankaj Gupta, the President of the Ayodhya Dham Vyapar Mandal said that shops were demolished for the widening of the Ram Path, and traders were given merely Rs 1-2 lakh as compensation, which felt more like charity. “As a protest we closed our shops for two days, but no public representative or official addressed our grievances,” he said.
Gupta claimed that before the assembly elections of 2022, the then deputy Chief Minister, Dinesh Sharma, had assured traders that they would receive new shops free of cost in exchange for the demolished ones. However, after the election, traders were given a meagre compensation of Rs 1 lakh and were asked to pay between Rs 20 and Rs 25 lakh for new shops, he added.
Policy shift
The new policy allows displaced shopkeepers to take possession of 500 newly constructed shops on interest-free, long-term instalments. Previously, shopkeepers had to pay upfront to take possession of the shops, which ranged in cost from Rs 20 lakh to Rs 25 lakh. This requirement forced many traders to consider bank loans, making it nearly impossible for them to afford the new shops.
The revised policy, however, allows shopkeepers to pay for their shops over a 20-year period without any interest. The decision has been welcomed by the affected traders.
“The Ayodhya Development Authority (ADA) is now handing over shops without requiring any down payment,” said Ayodhya Divisional Commissioner Gaurav Dayal.
Mohinder Srivastava, a local trader leader, expressed relief over the policy change, and said that it should have been implemented earlier. “After this decision, 150 shopkeepers have already taken possession of their shops,” he said.
The Yogi government’s policy shift in Ayodhya reflects a broader attempt to regain the trust of local communities and address the grievances that contributed to the BJP's recent electoral defeat.
