Union government approves creation of Urban Challenge Fund with Rs 1,000 billion CA

The central government has approved the creation of an Urban Challenge Fund (UCF) with a central assistance (CA) outlay of Rs 1,000 billion to accelerate urban transformation in India. The CA will cover 25 per cent of the project cost, subject to raising a minimum of 50 per cent of the project cost from the market. The UCF is expected to catalyse a total investment of around Rs 4,000 billion by FY 2030-31 by leveraging public and private capital. With an extendable period up to FY 2033-34, the UCF will implement proposals relating to water and sanitation and other aspects.