Urban challenge fund to focus on revitalising core areas of cities
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NEW DELHI: The next phase of central assistance (seed funding) for states to take up transformative projects under the Rs 1 lakh crore Urban Challenge Fund (UCF) will focus more on revitalising core areas of cities and fixing legacy infrastructure gaps, such as bad drainage, sanitation and polluted water bodies.
Officials said the focus of this funding will be on projects that have a transformative impact. Centre will provide such financial aids to 500-1,000 small cities as well to take up projects, they said.
The housing and urban affairs ministry has finalised the UCF scheme and it is likely to be launched soon, sources said.
TOI on Jan 13 had reported that PM Narendra Modi has directed ministry officials to focus more on creating facilities, amenities and better transportation network in those areas of cities which naturally attract people and businesses, rather than developing new cities.
Following the PM's direction, more thrust is now on having a better framework for transit-oriented development (TOD) for cities to push intensive and planned growth along transportation networks, the sources said.
Speaking at a CII-organised conference, additional secretary in the ministry, D Thara, said, "In UCF, we are looking at revitalisation of cities and fixing of legacy infrastructure as a primary goal.
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We are not in a hurry to fund. We are clear that these projects should bring huge transformation and big impact. It can't be unfixing small things here and there. The project could be of any size but it has to be make a lot of difference to citizens.
" The focus is not about building afresh but about fixing what already exists, she added.
Officials said under UCF, govt is also likely to provide seed fund for developing new greenfield areas, with good rail connectivity, as future cities.
In her Budget speech, finance minister Nirmala Sitharaman had announced the seting up of UCF to implement proposals for 'Cities as Growth Hubs', 'Creative Redevelopment of Cities' and 'Water and Sanitation'.
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