Mumbai: The state cabinet on Tuesday approved a proposal to set up an Urban Challenge Fund to provide financial aid for the execution of civic infrastructure projects in small and medium cities with population less than one lakh.The objective of the scheme, which will be implemented from 2025-26 to 2030-31, is to strengthen local bodies to help them raise funds through loans, municipal bonds, PPP and private investment. The Centre and state government will provide Rs 11,200 crore each and Rs 22,400 is to be raised from the market.The mission will cover around 22 key components, including digital governance, development of core urban infrastructure, circular economy, traffic congestion-reduction projects, last-mile connectivity, urban regeneration of 5 to 20 sq km, small and medium cities as growth hubs, redevelopment of slums, pedestrian- and cycle-friendly transport projects, demonstration projects, transit hub upgrading, transit-oriented development infrastructure development, urban development hubs, creative urban redevelopment, and water supply and sanitation projects.The cabinet has approved changes as per central government guidelines for the implementation of the fund. A separate budget will be created for the Urban Challenge Fund, and the urban development department will appoint the consultant and approve the schemes.
