Union Budget 2025: INR 1 Lakh Cr Urban Challenge Fund Announced To Transform Cities

Union Budget 2025: INR 1 Lakh Cr Urban Challenge Fund Announced To Transform Cities

SUMMARY

During her eighth consecutive Union Budget on Saturday, finance minister Nirmala Sitharaman announced several measures, one of which focusses on urban sector reforms

The government will set up an Urban Challenge Fund worth INR 1 Lakh Cr to implement proposals aimed at transforming cities into growth hubs, facilitating creative redevelopment, and improving water and sanitation infrastructure

This fund aims to transform cities into growth hubs, drive creative redevelopment, and enhance water and sanitation infrastructure, as announced in the July budget

Finance minister Nirmala Sitharaman announced a number of measures during her eighth consecutive Union Budget on Saturday (February 1). One of them focusses on urban sector reforms.

Building on the proposals from the July budget, the government will incentivise governance, municipal services, urban land management, and planning.

During the speech, the minister said that, “The government will set up an Urban Challenge Fund worth INR 1 Lakh Cr to implement proposals aimed at transforming cities into growth hubs, facilitating creative redevelopment, and improving water and sanitation infrastructure.”

This fund aims to transform cities into growth hubs, drive creative redevelopment, and enhance water and sanitation infrastructure, as announced in the July budget.

This fund will finance up to 25% of the cost of bankable projects, with the stipulation that at least 50% of the cost be funded through bonds, bank loans, and public-private partnerships (PPPs). Additionally, an allocation of INR 10,000 Cr is proposed for the fund in the financial year 2025-26.

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Union Budget 2025: INR 1 Lakh Cr Urban Challenge Fund Announced To Transform Cities-Inc42 Media
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