Paper: GS – II, Subject: Governance, Topic: Government Policies, Issue: Urban Challenge Fund (UCF).
Context:
The recently approved Urban Challenge Fund (UCF) by the Indian government marks a significant shift in urban development policy, allowing Resident Welfare Associations (RWAs) to collaborate with local bodies in proposing and executing projects.
- With a budget of Rs 1-lakh crore, this initiative aims to enhance urban infrastructure through public-private partnerships, encouraging citizen participation and innovative solutions.
Key Takeaways:
| About Urban Challenge Fund (UCF): The Urban Challenge Fund (UCF) is a Centrally Sponsored Scheme designed to support transformative and bankable urban infrastructure Projects through a competitive “challenge mode” framework. Ministry of Housing and Urban Affairs (MoHUA): Nodal ministry for implementation and monitoring. Operational Period: FY 2025–26 to 2030–31 (extendable till 2033–34). Aim: To build resilient, inclusive, productive and climate-responsive cities. To mobilise market finance and private participation in urban infrastructure. To position cities as growth hubs driving India’s next phase of economic development. |
Expected Outcomes: Urban Challenge Fund (UCF):
- Enhanced Urban Infrastructure: Improved transport, waste management, and public services.
- Increased Citizen Engagement: RWAs’ participation promotes ownership and accountability.
- Efficient Resource Utilisation: Private sector brings capital, innovation, and execution efficiency.
- Sustainable Urban Development: Focus on water, sanitation, and redevelopment supports climate-resilient growth.
- Financial Empowerment of ULBs: Encourages municipal bonds and bank borrowing, strengthening fiscal capacity.
The Urban Challenge Fund promotes citizen-led, PPP-based urban development, empowering RWAs and local bodies to address infrastructure gaps and enhance sustainability, paving the way for inclusive and resilient urban growth in India.
Source: (The Indian Express, The Hindu)
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