Rs 2,719.80 Crore Urban Challenge Fund Projects for Ahmedabad
Why in the news
The Ministry of Housing and Urban Affairs approved six Ahmedabad urban infrastructure projects under the Urban Challenge Fund in July 2026. Scheme details and funding patterns are popular exam topics.
Key facts
- Total approved: Rs 2,719.80 crore for six projects.
- Funding pattern: 25% Centre, 25% State, 50% mobilised through municipal bonds, loans or PPP.
- Ahmedabad’s split: Rs 679.95 crore each from the Centre and Gujarat.
- Sectors: sewerage, water management, sludge treatment and urban transit.
| Project | Cost |
|---|---|
| West Ahmedabad sewerage rehabilitation | Rs 852.93 crore |
| East Ahmedabad sewerage rehabilitation | Rs 551.35 crore |
| Old sewerage networks | Rs 290.24 crore |
| Intelligent Water Management System | Rs 215 crore |
| Sludge Management Facility (125 TPD) | Rs 479.25 crore |
| Transit management and fare collection | Rs 331.03 crore |
About the Urban Challenge Fund
The fund offers Rs 1 lakh crore of central assistance over five years and pushes cities towards market-based financing. It has three verticals: Creative Redevelopment of Cities, Cities as Growth Hubs, and Water and Sanitation. Gujarat’s allocation is Rs 6,475 crore, enabling projects worth Rs 25,900 crore.
Exam angle
- Note the 25:25:50 funding split.
- Fund size: Rs 1 lakh crore over five years.
- Approving ministry: Housing and Urban Affairs.
- Three verticals are a likely one-line question.