New Delhi: To encourage states to think innovatively Sustainable urbanization And the reurbing in existing cities, the Government announced on Saturday the creation of the Urban Challenge Fund (UCF) of RS 1 Lakh Crore. The subsidy for states will be used for a cost of 25% of the projects that cities occupy. The states would spend the remaining 75%, even through the collection of finance in the form of municipal bondsBank loans and private investment.
The authorities said the central subsidy will help to infuse around RS 4 Lakh Crore for Infrastructure developmentachieving saturation and redevelopment projects. They added that for the innovative and efficient use of the Earth, states would mark urban reforms related to governance, municipal services and planning.
In his budget speech, FM Nirmala Sithraman said that UCF will be established to implement proposals for ‘Cities as growth centers‘,’ Creative reurbing of cities’ and ‘water and sanitation’. “This fund will finance up to 25% of the cost of financing projects with a stipulation that at least 50% of the cost is financed from bonds, bank loans and PPP. An assignment of RS 10,000 million rupees is proposed by 2025-26, ”he said.
The sources said that in the first year, the cities, which qualify the challenge, would have to finance another 30,000 million rupees for projects that would identify. The subsidy will be for new and existing cities, they said. “Imagine the impact of the general investment of RS 4 Lakh million rupees that cover during the years, RS 1 Lakh as Central Grant and other RS 3 Lakh Crore by the cities, it will have in the cities,” said a source.
States persuading to take innovative measures for intensive urban development by improving Physical and social infrastructure It has become urgent taking into account that most cities, including levels 2 and 3, have witnessed unregulated growth, resulting in an inefficient use of scarce lands.
On January 13 he reported for the first time that Prime Minister Narendra Modi, while reviewing the urban development sector, had asked officials to focus more on the creation of facilities, services and a better transport network in areas in cities that Naturally attract people and businesses, to develop new cities that push new cities that drive horizontal growth.