SchemesWednesday, 22 April 2026·https://testbook.com/current-affairs/22-april-2026-daily-current-affairs
Urban Challenge Fund guidelines launched with ₹1 lakh crore central assistance
The Union government launched the Urban Challenge Fund guidelines on 15 April 2026 with ₹1 lakh crore central assistance to mobilise ₹4 lakh crore in urban infrastructure.
Key highlights
Direct fact
On 15 April 2026 in New Delhi, Union Minister Manohar Lal launched the operational guidelines for the Urban Challenge Fund (UCF) and the Credit Repayment Guarantee Sub-Scheme (CRGSS) to support urban infrastructure financing.
Key specifics
- The UCF provides ₹1 lakh crore in Central Assistance to catalyse ₹4 lakh crore of total investment.
- ₹90,000 crore is earmarked for direct urban projects, while ₹5,000 crore each is set aside for project preparation and CRGSS.
- Central Assistance is capped at 25% of project cost, and at least 50% must come from municipal bonds, bank loans, and PPPs.
- The fund will operate from FY 2025-26 to FY 2030-31, with focus on Tier-II and Tier-III cities.
- Project scope includes old city redevelopment, urban mobility, non-motorised transport, and climate-resilient development.
Exam lens
Scheme and economy linkage: UCF amount, CRGSS, funding pattern, and implementation period; TNPSC may ask which ministry launched it and what financing model it promotes.