SchemesThursday, 16 April 2026·https://testbook.com/current-affairs/16-april-2026-daily-current-affairs
Urban Challenge Fund launched in April 2026: ₹1 lakh crore push for urban infrastructure
The Urban Challenge Fund guidelines were launched on 15 April 2026 with ₹1 lakh crore central assistance to mobilise ₹4 lakh crore in urban investment.
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 from FY 2025-26 to FY 2030-31.
Key specifics
- The Urban Challenge Fund provides ₹1 lakh crore in central assistance to catalyse ₹4 lakh crore of total urban 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 PPP.
- The fund focuses on Tier-II and Tier-III cities, including hilly regions and North-Eastern states.
- Project areas include old city redevelopment, urban mobility, non-motorised transport, and climate-resilient development.
Exam lens
Question type: Scheme and funding match-the-following. Key facts: UCF, CRGSS, ₹1 lakh crore, FY 2025-26 to FY 2030-31, 25% cap, 50% market mobilisation. TNPSC may ask which ministry launched it and what financing model it promotes.