Manohar Lal Launches Operational Guidelines for Urban Challenge Fund

₹1 Lakh Crore UCF to Catalyse ₹4 Lakh Crore Urban Investments; Focus on Tier-II & Tier-III Cities

Credit Repayment Guarantee Sub-Scheme to Enable Smaller Cities Access Market-Based Financing

Fund will support transformative projects across key sectors such as redevelopment of old city areas and markets, urban mobility and last-mile connectivity, non-motorised transport, water and sanitation: Shri Manohar Lal

Union Minister for Housing and Urban Affairs Shri Manohar Lal today launched the Operational Guidelines for the Urban Challenge Fund (UCF) along with the Credit Repayment Guarantee Sub-Scheme (CRGSS) in New Delhi, marking a significant step towards transforming urban infrastructure financing in the country.

Representatives from various States including Madhya Pradesh, Gujarat and Odisha participated in the event. The Chief Minister of Madhya Pradesh, Shri Mohan Yadav, and the Chief Minister of Odisha, Shri Mohan Charan Majhi, addressed the gathering through video messages.

Addressing the gathering, Shri Manohar Lal stated that the Urban Challenge Fund represents a paradigm shift in India’s approach to urban development. He emphasized that the Fund is not merely about providing grants but about leveraging public funds to catalyse significantly larger investments and making cities financially robust and investment-ready.

The Minister highlighted that India’s cities are emerging as engines of economic growth, innovation and employment generation. Achieving the vision of Viksit Bharat @2047 will depend on how effectively cities are planned, financed and governed. He noted that while initiatives such as AMRUT, Swachh Bharat Mission and Smart Cities Mission have strengthened urban infrastructure, the next phase requires cities to become investment-ready and financially sustainable.