The government will establish an Urban Challenge Fund of Rs 1 lakh crore, said Finance Minister Nirmala Sitharaman on Saturday.
The fund is set to implement the proposals for ‘Cities as Growth Hubs’. This was announced as a part of creative redevelopment of cities and for water and sanitation purposes in July 2024 budget.
“This fund will finance up to 25 per cent of the cost of bankable projects with a stipulation that at least 50 per cent of the cost is funded from bonds, bank loans, and PPPs and allocation of 10,000 crore is proposed in 2025 to 26,” said Sitharaman.
