Urban Challenge Fund: ₹1 Lakh Crore Cabinet-Approved Scheme
Why in the news
The Union Cabinet cleared the Urban Challenge Fund (UCF), a Centrally Sponsored Scheme funding large city projects via competitive selection and market borrowing.
Key facts
| Feature | Detail |
|---|---|
| Period | FY 2025–26 to 2030–31 (extendable to 2033–34) |
| Market funding | Minimum 50%: municipal bonds, bank loans, PPPs |
| Investment expected | About ₹4 lakh crore over five years |
Eligibility
- Cities of 10 lakh or more population, all State and UT capitals, and major industrial cities of 1 lakh or more.
- A Credit Repayment Guarantee Scheme supports ULBs in hilly and northeastern States and those under 1 lakh population.
Objectives
- Raise market finance, cut grant dependence, attract private players.
Exam angle
- Ministry: Housing and Urban Affairs. Type: Centrally Sponsored Scheme; terms: municipal bonds, PPP, ULB.