Uttar Pradesh is planning to develop new housing projects and townships in its religious and heritage towns like Ayodhya, Varanasi, and Mathura due to rising housing demand. The government aims to capitalize on increased awareness and aspirations to settle in these sacred regions, fueled by infrastructure development and the state's economic growth initiatives. Land acquisition is underway for projects in Mathura, Kashi, and Chitrakoot, alongside ongoing work on the Ayodhya Township.