Jobaaj Stories
The government has announced the creation of a ₹1 lakh crore Urban Challenge Fund aimed at transforming cities into growth hubs. This fund will support urban development projects by financing 25% of the cost for bankable projects. For the fiscal year 2025-26, an allocation of ₹10,000 crore has been earmarked to kickstart the initiative.
To ensure the successful implementation of these projects, the remaining 50% of the funding will come from bonds, bank loans, and public-private partnerships (PPPs), creating a collaborative environment for urban growth. This approach will allow cities to develop infrastructure, create jobs, and enhance the quality of life for their residents.
The Urban Challenge Fund is part of the government's broader strategy to promote sustainable urban development, focusing on smart cities, advanced infrastructure, and boosting economic opportunities. By providing financial backing to vital urban projects, the government aims to create thriving urban centers that will act as catalysts for growth across India.
This initiative reflects the government’s commitment to boosting economic growth in cities, making them more resilient, efficient, and better equipped to meet future challenges.
Also Read: Key Takeaways from Union Budget 2025
