Summary:

To encourage market-linked financing for urban development, the Ministry of Housing and Urban Affairs (MoHUA) introduced the Urban Challenge Fund (UCF) and the Credit Repayment Guarantee Credit Sub-Scheme (CRGSS). The fund intends to raise around Rs. 4 lakh crore (US$42.84 billion) through municipal bonds, bank loans, and public-private partnerships with central assistance of Rs. 1 lakh crore (US$10.71 billion). It supports initiatives including urban transportation, redevelopment, water and sanitation, and climate-resilient infrastructure in Tier-II and Tier-III cities, particularly hilly and Northeastern areas. Projects receive Rs. 90,000 crore of the overall allotment, while planning, capacity building, and credit guarantees each receive Rs. 5,000 crore. The program supports the objectives of Viksit Bharat @2047 and fortifies Urban Local Bodies.

Source: IBEF

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