Mumbai, July 22: The Maharashtra government has rolled out the ambitious Urban Challenge Fund campaign across all 423 Urban Local Bodies (ULBs) in the state, paving the way for development projects worth Rs 44,800 crore. The Urban Development Department issued the Government Resolution (GR) on Wednesday, coinciding with Chief Minister Devendra Fadnavis' birthday.
Announcing the initiative, Deputy Chief Minister and Urban Development Minister Eknath Shinde described the Urban Challenge Fund as a transformative programme that will help build modern, self-reliant and economically vibrant cities across Maharashtra.
Blended Funding Model
Shinde said the campaign will be implemented from 2025-26 to 2030-31, with a provision to extend it by another three years if required. The scheme will follow a blended financing model, under which the Central government will contribute up to 25 per cent of the project cost.
At least 50 per cent of the funding will have to be mobilised through municipal bonds, bank loans or Public-Private Partnership (PPP) models, while the remaining 25 per cent will be contributed by the state government or the respective Urban Local Body.
All urban local bodies in Maharashtra will be eligible to participate in the programme. Notably, cities with a population of less than one lakh will benefit from a loan repayment guarantee mechanism, enabling smaller municipalities to raise funds from the market and undertake large-scale infrastructure projects.
Focus Areas Identified
The Urban Challenge Fund will focus on three key areas—water supply and sanitation, creative urban redevelopment, and transforming cities into engines of economic growth.
The scheme will finance a wide range of projects, including digital governance, trunk infrastructure, traffic decongestion measures, last-mile connectivity, redevelopment of old city areas and marketplaces, non-motorised transport infrastructure, transit hubs, Transit-Oriented Development (TOD), urban flood mitigation, integrated waste management, greenfield and semi-greenfield development, roads and flyovers, riverfront development, land bank creation, and relocation of urban dairy businesses.
For cities with a population exceeding 20 lakh, the government will also prioritise the development of convention centres, recreation facilities, state-of-the-art public libraries, sports infrastructure, water sports facilities, meditation centres and wellness parks.
Implementation Framework Planned
To ensure effective implementation, the government will establish Project Development and Management Consultants (PDMCs), Project Management Units (PMUs), district-level advisory and monitoring committees, and dedicated campaign management cells in every city. Special Purpose Vehicles (SPVs) may also be created wherever necessary for project execution.
Also Watch:
Calling the Urban Challenge Fund more than just a financial assistance scheme, Shinde said it represents a comprehensive roadmap for Maharashtra's urban transformation. He said the initiative would strengthen civic infrastructure, improve urban services, attract investment, generate employment opportunities and enhance the quality of life for citizens.
The state government, he added, is committed to making Maharashtra's cities more competitive, sustainable and financially self-reliant to meet future urban development needs.
To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/
