New Delhi, Feb 14: The Indian government has approved the Urban Challenge Fund (UCF) with a central assistance of Rs 1 lakh crore to transform urban development by shifting from grant-based financing to market-linked, outcome-oriented infrastructure creation.
The initiative, set to operate from FY 2025–26 to FY 2030–31, aims for a total investment of Rs 4 lakh crore through leveraging market finance, private participation, and citizen-centric reforms.
It targets resilient, inclusive, and climate-responsive cities, with a requirement for at least 50% of project financing to come from market sources. The fund will support cities with populations over 1 lakh and will include provisions for smaller and hilly urban local bodies.
