Dehradun: Under the guidance of Chief Minister Pushkar Singh Dhami, Uttarakhand is set to receive a major boost in urban development through the ambitious Urban Challenge Fund (UCF). The scheme aims to strengthen urban infrastructure, promote economic self-reliance of municipal bodies, and transform cities into modern growth hubs.
A high-level meeting chaired by Housing Secretary R Rajesh Kumar was held at the state secretariat, where key directions were issued for preparing competitive project proposals to be submitted to the central government.
₹1 Lakh Crore National Scheme to Drive Urban Growth
The Urban Challenge Fund, launched by the Ministry of Housing and Urban Affairs (MoHUA), will provide ₹1 lakh crore in central assistance across the country. The scheme will run from 2025–26 to 2030–31, with a possible extension of three years.
The primary goal is to attract large-scale investments and establish cities as centers of economic growth. CM Dhami has directed officials to ensure that Uttarakhand maximizes benefits by preparing high-quality proposals within stipulated timelines.
Special Advantage for Uttarakhand’s Hill Cities
Due to its mountainous geography, Uttarakhand will receive special advantages under the scheme. All 108 urban local bodies in the state will be covered under the Credit Repayment Guarantee mechanism.
This will enable even smaller municipalities and town panchayats with limited financial capacity to access bank loans and undertake large-scale infrastructure projects.
Focus Areas for Project Proposals
Urban local bodies have been asked to submit proposals across three key sectors:
1. Water and Sanitation
Projects related to drinking water supply, sewerage systems, sewage treatment, stormwater drainage, and solid waste management will be prioritized.
2. Creative Redevelopment
Revamping old city areas, markets, heritage zones, and public spaces to improve urban aesthetics and functionality.
3. Cities as Growth Hubs
Development of cities as centers for tourism, education, industry, and trade.
Key Cities Likely to Benefit
Several major cities in Uttarakhand are expected to benefit from the scheme, including Dehradun, Haridwar, Haldwani, Rishikesh, Roorkee, Kashipur, Rudrapur, Ramnagar, and Srinagar.
Projects in these cities may include tourism infrastructure, industrial expansion, and educational facilities.
Mandatory 50% Market Financing Model
One of the key conditions of the scheme is that at least 50% of the total project cost must be raised through market financing, including bank loans, bonds, or Public-Private Partnerships (PPP).
The central government will contribute 25%, while the remaining 25% will be borne by the state government or urban local bodies. This model aims to promote financial discipline and self-reliance among municipalities.
Performance-Based Fund Disbursement
Funding under the Urban Challenge Fund will be released in three phases:
- 30% as the first installment
- 50% as the second installment
- 20% as the final installment
Subsequent installments will depend on physical progress, geo-tagging of projects, and independent verification.
Reform-Linked Conditions for Urban Bodies
The scheme also mandates several governance and infrastructure reforms, including:
- Property tax reforms
- Audited financial accounts
- Digital citizen services
- GIS-based surveys
- Online monitoring systems
- Improved water supply and waste management
- Climate-resilient urban planning
CM Dhami Directs Fast-Track Implementation
Chief Minister Pushkar Singh Dhami has instructed all urban local bodies to quickly identify priority projects, prepare concept notes, and submit Detailed Project Reports (DPRs) on time.
He emphasized the government’s commitment to making cities clean, accessible, modern, and investment-friendly.
Transformational Step for Uttarakhand’s Urban Future
Housing Secretary R Rajesh Kumar described the Urban Challenge Fund as a transformative initiative for Uttarakhand’s urban development. He highlighted that the scheme will play a crucial role in expanding infrastructure even in smaller towns and hill regions.
With focused planning and timely execution, the Urban Challenge Fund is expected to serve as a long-term roadmap for sustainable and inclusive urban growth in Uttarakhand.
