Dehradun: Uttarakhand is set to undertake ₹3,000 crore worth of urban infrastructure development projects over the next five years through the Urban Challenge Fund, aimed at strengthening basic facilities across the state’s urban local bodies.
An agreement has been signed between the Urban Development Directorate and Housing and Urban Development Corporation (HUDCO) to facilitate funding for projects under the initiative. The financing structure will combine contributions from the state and central governments with HUDCO-backed loans.
50% Project Cost to Come Through HUDCO Loans
Under the funding arrangement, the project cost will be shared between the government and HUDCO.
- 25%: State government contribution
- 25%: Central government contribution
- 50%: HUDCO bank loan
The arrangement is expected to help urban local bodies take up larger infrastructure projects without facing funding constraints.
Urban Development Director Vinod Giri Goswami said the fund would enable urban local bodies to implement projects requiring substantial financial resources. All urban local bodies across Uttarakhand will be eligible to benefit from the fund.
Read also: Uttarakhand CM Dhami Approves ₹31 Crore for Roads, Bridges, Parking and Other Development Works
Roads, Sewerage and Markets Among Key Focus Areas
The Urban Challenge Fund will support a wide range of infrastructure projects based on the requirements of individual urban areas.
The projects can include:
- Improvement and redevelopment of markets in old city areas
- Strengthening of sewerage systems
- Upgradation of urban roads
- Improvement of traffic management
- Smart road projects
- Logistics infrastructure
- Urban mobility projects
- Townships
- Other urban infrastructure projects
The broader scope will allow urban local bodies to select projects according to their specific infrastructure and development needs.
Focus on Smart Roads and Urban Mobility
The initiative will not be limited to conventional construction projects. Smart roads, logistics and urban mobility have also been included within the scope of the fund.
Township development and other urban infrastructure projects can also be undertaken through the financing mechanism.
This is expected to provide urban local bodies with greater flexibility to develop modern infrastructure suited to the changing requirements of Uttarakhand’s cities.
HUDCO to Provide DPR and Technical Support
HUDCO will provide more than financial assistance under the agreement.
The organisation will support urban local bodies in preparing Detailed Project Reports (DPRs) and provide technical advice for proposed projects.
It will also assist in strengthening the capabilities of officials and employees involved in planning and implementing infrastructure projects.
Support for Bank Loan Approvals
HUDCO will also assist urban local bodies in securing loans from banks and financial institutions.
The support will cover the loan approval process and help facilitate the financial arrangements required to implement large infrastructure projects.
The Urban Challenge Fund therefore combines government contributions with loan-based financing to create a larger pool of funds for urban development.
Urban Bodies to Get Financial Push for Major Projects
The new funding arrangement is expected to give Uttarakhand’s urban local bodies greater financial and technical capacity to undertake large-scale development projects.
With roads, sewerage, markets, traffic management, smart mobility and other urban infrastructure included, the initiative provides a broader framework for addressing the basic infrastructure requirements of cities across the state.
