Chandigarh, April 15 -- Union Minister for Power, Urban Development, and Housing Manohar Lal Khattar launched the 'Urban Challenge Fund' (UCF) and the 'Credit Repayment Guarantee Sub-scheme' (CRGSS) today.
Alongside the Rs.1 lakh crore Urban Challenge Fund, a roadmap has been prepared to mobilise investments totalling Rs.4 lakh crore, with a special focus on plans to economically empower Tier-2 and Tier-3 cities.
Khattar today formally launched the Urban Challenge Fund from New Delhi. The Urban Challenge Fund will provide urban local bodies with opportunities to mobilise resources through municipal bonds, bank loans, and Public-Private Partnerships (PPP). Additionally, through the CRGSS, smaller cities will receive the support
of credit guarantees, enabling them to participate in large-scale infrastructure projects as well.
Representatives from various states-including Madhya Pradesh, Gujarat, and Odisha-participated in the event.
The Chief Minister of Madhya Pradesh, Mohan Yadav, and the Chief Minister of Odisha, Mohan Charan Majhi, joined the proceedings via video conferencing.
Union minister Khattar stated that, through this fund the Central govt aims to attract investments totalling up to Rs.4 lakh crore. Moving beyond the traditional system of grants, this fund will play a pivotal role in attracting investments.
The Centre's primary objective is no longer merely to provide funds to cities, but rather to make them financially robust, accountable, and investment-ready.
The Union minister remarked that India's cities are today emerging as hubs of economic growth, innovation, and employment, and the vision of a 'Viksit Bharat @ 2047' (Developed India by 2047) hinges upon the strength of these very cities.
A key feature of the UCF is that central assistance will be capped at a maximum of 25 per cent of the project cost, while at least 50 per cent of the funds are to be raised through municipal bonds, bank loans, and Public-Private Partnerships (PPPs).
This will not only ensure fiscal discipline but also boost private investment. Out of the total allocation, Rs.90,000 crore has been earmarked for projects, Rs.5,000 crore for project preparation and capacity building, and Rs.5,000 crore for the Credit Repayment Guarantee Sub-scheme.
The UCF fund will foster transformative projects in cities, including the redevelopment of historic city centres and markets, urban
transport and last-mile connectivity, non-motorised transport, water and sanitation infrastructure, and climate-resilient development.
Published by HT Digital Content Services with permission from Millennium Post.