New Delhi, Feb. 14 -- The Union Cabinet has approved the launch of the Urban Challenge Fund (UCF) with a total central assistance of Rs 1 lakh crore, Union Minister Ashwini Vaishnaw said on Saturday.
Under the scheme, central assistance will cover 25 per cent of a project's cost, provided that at least 50 per cent of the funding is mobilised from the market.
In a statement, the government said the initiative will lead to a total investment of Rs 4 lakh crore in the urban sector over the next five years.
The move marks a paradigm shift in India's urban new development approach from grant-based financing to a market-linked, reform-driven and outcome-oriented infrastructure creation, it said. The UCF will leverage market financing, private ...