Summary:

According to Brickwork Ratings, India would require around Rs. 80 lakh crore (US$854.43 billion) in urban infrastructure investment by 2037 to accommodate fast urbanisation and economic growth. By 2036, urban areas are predicted to account for almost 70% of India's GDP, making finance for sustainable cities a top issue. In an effort to transition urban development from grant-based support to market-driven funding, the government has established the Rs. 1 lakh crore Urban Challenge Fund, which could raise Rs. 4 lakh crore over the course of five years using blended approaches. At least 50% of project funding must be raised by urban local authorities through PPPs, bank loans, or municipal bonds, with a 25% contribution from the Center. With the use of new guarantee programs, this strategy seeks to enhance creditworthiness, financial discipline, and transparency, particularly in smaller cities.

Source: IBEF

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