Urban Challenge Fund and Startup India FoF 2.0 Approved
Why in the news
The Union Cabinet, chaired by Narendra Modi, cleared two funds: one for financing city infrastructure and another to strengthen the startup ecosystem.
Key facts
| Fund | Size | Aim |
|---|---|---|
| Urban Challenge Fund (UCF) | ₹1 lakh crore | Boost urban infrastructure financing |
| Startup India Fund of Funds 2.0 | ₹10,000 crore | Mobilise venture capital under Startup India |
How the UCF works
- Duration: FY26 to FY31.
- Central share: 25% assistance from the Centre.
- Rest of the money: mostly market sources such as municipal bonds and public-private partnerships (PPPs).
FoF 2.0
The second Fund of Funds sits under the Startup India initiative and is designed to draw more venture capital into startups.
Exam angle
- Approving body: Union Cabinet.
- UCF sources: central assistance plus municipal bonds and PPPs.
- Do not mix up the sizes: ₹1 lakh crore versus ₹10,000 crore.