Mumbai, July 22 (IANS) On the birthday of Chief Minister Devendra Fadnavis, the Maharashtra Urban Development Department on Wednesday issued a Government Resolution (GR) to implement the ‘Urban Challenge Fund’ initiative across all 423 Urban Local Bodies (ULBs) in the state.
Deputy Chief Minister and Urban Development Minister Eknath Shinde announced that development projects worth Rs 44,800 crore will take shape through this scheme, paving a new path toward financial self‑reliance for cities.
Elaborating on the GR, Deputy CM Shinde stated that the campaign will be implemented from 2025–26 to 2030–31, with a provision to extend the duration by an additional three years if needed. The initiative will adopt a blended financing model.
For eligible projects, up to a maximum of 25 per cent funding will come from the Central Government, a minimum of 50 per cent must be raised through municipal bonds, bank loans or Public‑Private Partnerships (PPP), and the remaining 25 per cent will be provided by the State Government or the concerned Urban Local Body.
All Urban Local Bodies in Maharashtra will be eligible for this campaign. Notably, a loan repayment guarantee mechanism has been introduced for cities with a population of less than 1,00,000, making it easier for smaller towns to raise market funds and execute large‑scale development projects.
The initiative will primarily focus on three key pillars, water and sanitation, creative urban redevelopment and transforming cities into hubs of economic growth, said DCM Shinde.
Under this campaign, funding will be channelled into a wide array of development works, including digital governance and trunk infrastructure, traffic de‑congestion and last‑mile connectivity projects, revitalisation of old cities and heritage markets, non‑motorised transport, transit hubs and Transit‑Oriented Development (TOD), urban flood mitigation projects and integrated waste management, greenfield and semi‑greenfield developments, roads, flyovers and riverfront development, and projects not covered under other schemes such as land bank management and relocation of urban dairies.
Additionally, in cities with a population exceeding 20 lakh, priority will be given to constructing convention centres, recreational hubs, state‑of‑the‑art public libraries, sports facilities, water sports centres, meditation centres and wellness parks, he added.
To ensure effective project execution, Project Development and Management Consultants (PDMC), Project Management Units (PMU), District‑Level Advisory and Monitoring Committees and dedicated Campaign Management Units in each city will be established. Special Purpose Vehicles (SPVs) may also be set up where necessary to carry out specific projects.
“The Urban Challenge Fund is not merely a financial scheme, but a transformative blueprint for developing Maharashtra’s cities. This initiative will build modern infrastructure, strengthen civic services, boost investments, generate employment opportunities and enhance the quality of life for citizens. The State Government remains committed to making Maharashtra’s cities more resilient, competitive, sustainable and economically self‑reliant to meet future needs,” stated DCM Shinde.
–IANS
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