Urban Challenge Fund of Rs 1L Cr announced to drive cities as growth hubs

The Government will set up an Urban Challenge Fund of Rs 1 lakh crore to implement proposals for cities as growth hubs, creative redevelopment of cities, and for water and sanitation purposes as announced in the July Budget

The fund is set to finance up to 25% of the cost of bankable projects with a stipulation that at least 50 per cent of the cost is funded from bonds, bank loans, and PPPs. An allocation of Rs 10 thousand crores has been proposed by the government in the FY 2025-26