The government will set up an Urban Challenge Fund of ₹1 lakh crore to implement the proposals for ‘Cities as Growth Hubs’, ‘Creative Redevelopment of Cities’ and ‘Water and Sanitation’, it was announced in the Union Budget presented on Saturday. All three programmes were announced in the last Budget presented in July.
Finance Minister Nirmala Sitharaman said this fund would finance up to 25% of the cost of bankable projects with a stipulation that at least 50% of the cost was funded from bonds, bank loans, and Public-Private Partnerships (PPP). An allocation of ₹10,000 crore was proposed for 2025-26.
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The Budget also proposed that a National Geospatial Mission would be started to develop foundational geospatial infrastructure and data. Using PM Gati Shakti, this Mission would facilitate modernisation of land records, urban planning, and design of infrastructure projects.
Asserting that the government had been giving priority to assisting urban poor and vulnerable groups, Ms. Sitharaman said a scheme for socio-economic upliftment of urban workers would be implemented to help them improve their incomes, have sustainable livelihoods and a better quality of life.
PM SVANidhi scheme
The Finance Minister highlighted the PM SVANidhi scheme, which, she said had benefited more than 68 lakh street vendors, giving them respite from high-interest informal sector loans.
“Building on this success, the scheme will be revamped with enhanced loans from banks, UPI-linked credit cards with ₹30,000 limit, and capacity building support,” she added.
PM SVANidhi is a special micro-credit facility for providing affordable loans to street vendors.
She highlighted that under the Special Window for Affordable and Mid-Income Housing (SWAMIH) 50,000 dwelling units in stressed housing projects had been completed, and keys handed over to home buyers. Another 40,000 units would be completed in 2025, further helping middle-class families which were paying EMIs on loans taken for apartments, while also paying rent for their current dwellings.
Building on this success, SWAMIH Fund 2 will be established as a blended finance facility with contribution from the government, banks and private investors. This fund of ₹15,000 crore will aim for expeditious completion of another 1 lakh units.
Published - February 01, 2025 12:04 pm IST
