In a first, the Union government’s recently-approved Rs 1-lakh crore Urban Challenge Fund will likely allow Resident Welfare Associations (RWAs) to work with local bodies to propose projects, secure funding for them and run the services in partnership, The Indian Express has learnt.
A year after Finance Minister Nirmala Sitharaman announced the fund in her Budget speech in 2025, the Union Cabinet on February 13 approved the Urban Challenge Fund. Cities will be able to propose projects under three categories — cities as growth hubs, their creative redevelopment, and water and sanitation. The Central government will give 25% of the project cost provided that at least 50% of the cost is raised by the cities from loans or municipal bonds or through public-private partnerships. The remaining 25% of the cost will come from the urban local bodies (ULBs) or state government’s own funds.
