Housing and Urban Affairs Minister Manohar Lal has chaired a detailed discussion on the Urban Challenge Fund with State Urban Development Ministers and Secretaries in New Delhi to review its forward strategy and implementation priorities.

 

In a social media post, the Minister said that the Urban Challenge Fund marks a decisive shift in India’s urban development approach, moving beyond traditional grants to leverage public funds to crowd in significantly higher investment.

 

The Housing and Urban Affairs Minister said that the preparedness of cities will be critical to achieving the vision of Viksit Bharat, as these will play a central role in driving growth, innovation, and employment.

 

He added, ” This calls for improved planning, stronger governance, and sustainable financing practices.’ The Minister also encouraged States and Urban Local Bodies to deepen reforms, enhance their financial capacity, and actively adopt market-based financing. The Fund offers a clear opportunity to develop resilient, competitive, and investment-ready urban ecosystems. 

 

The Union Cabinet recently approved the launch of the Urban Challenge Fund with a total Central Assistance of one lakh crore rupees. The fund has been designed as a catalytic instrument to mobilise nearly four times the investment through market-based financing. The Urban Challenge Fund will be implemented from Financial Year 2025-26 to 2030-31, aiming to transform the cities into new growth hubs and drivers of India’s urban future.