Union Information and Broadcasting Minister Ashwini Vaishnaw on Saturday announced that the 1 lakh crore Urban Challenge Fund (UCF) which was passed by the Union Cabinet, is geared towards meeting the mounting demands of the rapid urbanisation process and making cities centres of economic development.
The centrally sponsored scheme is expected to give 1 lakh crore in central assistance between FY 2025-26 and FY 2030-31 with potential three-year extension (Vaishnaw). The contribution provided by the Centre will not exceed 25 percent of a total project cost, the remaining half of the amount will have to be raised by means of market-driven tools including loans, municipal bonds, or even public-private venture. States, Union Territories, urban local bodies (ULBs) or market will provide the remaining 25 percent.
According to him, the design represents a break with the former system of infrastructure provision of grant-based funding in favor of a more reform-oriented and outcome-based infrastructure development. The 1 lakh crore central investment is likely to trigger an increment in total urban infrastructure investment of above 3 lakh crore according to Vaishnaw.
The fund will focus more on creative redevelopment of overcrowded central business districts and core urban centers, and the renovation of the legacy infrastructure, including water supply, drainage, sewerage, etc. It will also be concerned with the enhancement of mobility, development of better public spaces and capture of the land value to facilitate project financial sustainability.
Other elements involve legacy waste remedial, dumpsite remedial, and setting up of integrated command and control centres. Another major vertical focuses on enhancing the cities as centres of growth, through integrating industrial, defence, tourism and port based clusters with spatial and transit planning.
Join our whatsapp group for Latest updates
Click Here for Chhattisgarh News
Click Here for Entertainment News