Rs 1 lakh crore Urban Challenge Fund to implement ‘Cities as Growth Hubs’

New Delhi:  Union Finance Minister Nirmala Sitharaman, while presenting the Budget 2025-2026 in the Parliament on Saturday, said that the Government will set up an Urban Challenge Fund of Rs 1 lakh crore to implement the proposals for ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’ and ‘Water and Sanitation’ announced in the July Budget.

She further added this fund will finance up to 25 per cent of the cost of bankable projects with a stipulation that at least 50 per cent of the cost is funded from bonds, bank loans, and PPPs. An allocation of Rs 10,000 crore is proposed for 2025-26.

The Budget has proposed that a National Geospatial Mission will be started to develop foundational geospatial infrastructure and data. Using PM Gati Shakti, this Mission will facilitate the modernisation of land records, urban planning, and design of infrastructure projects.

Sitharaman said that the Government has been giving priority to assisting urban poor and vulnerable groups. A scheme for the socio-economic upliftment of urban workers will be implemented to help them improve their incomes, have sustainable livelihoods and a better quality of life.

Gig workers of online platforms provide great dynamism to the new-age services economy. “Recognising their contribution, our Government will arrange for their identity cards and registration on the e-Shram portal. They will be provided healthcare under PM Jan Arogya Yojana. This measure is likely to assist nearly 1 crore gig-workers,” she said.

The Finance Minister highlighted that the PM SVANidhi scheme has benefitted more than 68 lakh street vendors giving them respite from high-interest informal sector loans. Building on this success, the scheme will be revamped with enhanced loans from banks, UPI-linked credit cards with Rs 30,000 limit, and capacity-building support.

She highlighted that under the Special Window for Affordable and Mid-Income Housing (SWAMIH), 50,000 dwelling units in stressed housing projects have been completed, and keys handed over to home-buyers. Another 40,000 units will be completed in 2025, further helping middle-class families who were paying EMIs on loans taken for apartments, while also paying rent for their current dwellings.

Building on this success, SWAMIH Fund 2 will be established as a blended finance facility with contributions from the Government, banks and private investors. This fund of Rs 15,000 crore will aim for expeditious completion of another 1 lakh units.

–IANS