Prime Minister Narendra Modi on 6 March announced creation of a ₹1 lakh crore Urban Challenge Fund, focusing on governance, infrastructure, and financial sustainability given that country’s urban population is projected to reach approximately 90 crore by 2047.
- Modi urged the private sector, particularly the real estate and industrial sectors, to prioritise and advance planned urbanisation.
- At the same time, he also stressed the importance of collaborative efforts to further initiatives like AMRUT 2.0 and the Jal Jeevan Mission.
- The Urban Challenge Fund, announced in the Union Budget 2025-26 will be set tup to implement the proposals for (to make) cities as growth hubs, creative redevelopment of cities, and for water and sanitation purposes.
- This fund would finance up to 25% of the cost of bankable projects with a stipulation that at least 50% of the cost was funded from bonds, bank loans, and Public-Private Partnerships (PPP). An allocation of ₹10,000 crore was proposed for 2025-26.
