Question
According to the Union Cabinet decision on urban
development financing, what is the amount of Central assistance approved for the Urban Challenge Fund (UCF)?Solution
The Union Cabinet approved the Urban Challenge Fund with Central assistance of ₹1 lakh crore to support urban infrastructure development projects. The fund is structured as a Centrally Sponsored Scheme under the Ministry of Housing and Urban Affairs. It is intended to finance transformative and bankable urban projects that strengthen city infrastructure and economic productivity. The initiative is designed to promote resilient, inclusive, and climate-responsive urban development. By providing financial support to cities for infrastructure investments, the fund aims to enhance urban capacity and position cities as engines of economic growth within India’s development framework.
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