In April 2026, Union Minister Manohar Lal Khattar, Ministry of Housing and Urban Affairs (MoHUA), launched the Operational Guidelines for Urban Challenge Fund (UCF) along with the Credit Repayment Guarantee Sub-Scheme (CRGSS) in New Delhi, Delhi, to strengthen urban infrastructure financing and make cities investment-ready.
- UCF aims to transform cities into financially sustainable growth hubs aligned with the vision of Viksit Bharat @2047 and broader urban transformation goals.
About Urban Challenge Fund (UCF):
Implementation: Implemented runs from Financial Year (FY) 2025–26 to FY 2030–31, extendable up to FY 2033–34.
Finance: Total Central Assistance of Rs. 1 lakh crore is structured to catalyze nearly Rs. 4 lakh crore in total urban investments, with Central Assistance capped at 25% of project cost and at least 50% funding from market-based sources like municipal bonds, bank loans, and Public-Private Partnerships (PPPs).
Allocation: Rs. 90,000 crore is allocated for project funding and Rs. 5,000 crore for capacity building and preparation.
CRGSS: The CRGSS, a dedicated component of the UCF, supports smaller cities by providing credit guarantees to help them access and raise finance from market-based sources, with an allocation of Rs. 5,000 crore under the scheme.
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