National News

Urban Challenge Fund

February 19 , 2026 18 hrs 0 min 65 0

The Union Cabinet has approved the launch of the Urban Challenge Fund (UCF) with ₹1 lakh crore central assistance.
The fund was first announced in the Union Budget 2025–26 and aims to mobilise a total investment of ₹4 lakh crore over five years.
It will operate from Financial Year (FY) 2025–26 to FY 2030–31, with possible extension up to FY 2033–34.
The scheme will cover cities with a population above 10 lakh, all State capitals, and major industrial cities with a population of over 1 lakh.
It focuses on cities as growth hubs, creative redevelopment, and water and sanitation infrastructure.
The Centre will provide 25% of the project cost, at least 50% must be raised from market sources, and the remaining 25% will be contributed by States or Urban Local Bodies (ULBs).