
Union Minister Manohar Lal Khattar has launched the operational guidelines for the Urban Challenge Fund (UCF) and the Credit Repayment Guarantee Sub-Scheme (CRGSS) in New Delhi. The UCF will be implemented from FY26 to FY31, with a possible extension until FY34.
The central government has allocated ₹1 lakh crore as Central Assistance for the UCF to attract a total urban investment of ₹4 lakh crore. Central Assistance is capped at 25% of the total project cost, while at least 50% must be sourced from marketbased sources like municipal bonds, bank loans, and PublicPrivate Partnerships (PPPs). Of the total outlay, ₹90,000 crore is for project funding and ₹5,000 crore is for capacity building. The CRGSS, which has an allocation of ₹5,000 crore, provides credit guarantees to assist smaller cities in accessing finance from market-based sources.
