Rs 1 Lakh Crore Urban Challenge Fund to Launch ‘Cities as Growth Hubs’
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Synopsis
The Government of India is set to establish an Urban Challenge Fund of Rs 1 lakh crore to implement key urban development initiatives. This fund will support various projects aimed at enhancing urban infrastructure and improving the quality of life for citizens.
Key Takeaways
- 1 lakh crore Urban Challenge Fund introduced.
- Focus on ‘Cities as Growth Hubs’ and urban redevelopment.
- Support for urban poor and socioeconomic upliftment.
- PM SVANidhi scheme to be revamped for street vendors.
- SWAMIH Fund 2 aims to expedite housing projects.
New Delhi, Feb 1 (NationPress) Union Finance Minister Nirmala Sitharaman, during the presentation of the Budget 2025-2026 in Parliament on Saturday, announced that the Government will establish an Urban Challenge Fund of Rs 1 lakh crore to implement initiatives for ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’, and ‘Water and Sanitation’ as outlined in the July Budget.
She further elaborated that this fund will cover up to 25 percent of the costs associated with bankable projects, with the requirement that at least 50 percent of the costs come from bonds, bank loans, and Public-Private Partnerships (PPPs). An allocation of Rs 10,000 crore is earmarked for 2025-26.
The Budget also includes the launch of a National Geospatial Mission aimed at developing essential geospatial infrastructure and data. Utilizing PM Gati Shakti, this mission will aid in modernizing land records, urban planning, and infrastructure project design.
Sitharaman stated that the Government prioritizes support for the urban poor and vulnerable demographics. A new scheme focused on the socio-economic upliftment of urban workers will be rolled out to enhance their incomes, ensure sustainable livelihoods, and improve their quality of life.
Gig workers on online platforms significantly contribute to the dynamic new-age services economy. “Acknowledging their efforts, our Government will provide them with identity cards and registration on the e-Shram portal. They will also receive healthcare benefits under the PM Jan Arogya Yojana. This initiative is expected to support nearly 1 crore gig workers,” she noted.
The Finance Minister pointed out that the PM SVANidhi scheme has aided over 68 lakh street vendors by relieving them from high-interest loans in the informal sector. Building on this success, the scheme will be updated to offer enhanced loans from banks, UPI-linked credit cards with a limit of Rs 30,000, and capacity-building assistance.
She emphasized that under the Special Window for Affordable and Mid-Income Housing (SWAMIH), 50,000 dwelling units in distressed housing projects have been completed, with keys handed over to home-buyers. An additional 40,000 units are set to be completed in 2025, providing further assistance to middle-class families managing both EMIs and rent.
Following this success, SWAMIH Fund 2 will be created as a blended finance facility with contributions from the Government, banks, and private investors. This Rs 15,000 crore fund will aim for the swift completion of another 1 lakh units.
