2 weeks ago
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The State authorities has accorded administrative authorisation for the implementation of projects nether the Union government’s caller Urban Challenge Fund (UCF) which aims astatine a cardinal alteration successful developmental imaginativeness by pushing municipality section bodies to determination towards market-based financing of municipality development. Under the scheme, which volition tally from 2026 to 2031, the Union authorities volition provide 25% of the task outgo arsenic assistance with a stipulation that astatine slightest 50% of the outgo is funded from bonds, slope loans and nationalist backstage partnerships (PPPs).
The Union government, which has earmarked ₹1 lakh crore nether the UCF for the 5 twelvemonth period, aims to pull ₹4 lakh crore successful full investments by providing up to 25% Central assistance for municipality projects. The 25% assistance is further babelike connected cardinal commitments by the State with respect to implementation of the UCF, including implementation of municipality reforms and adherence to each provisions of the UCF guidelines related to task preparation, appraisal, financing and monitoring.
Revenue generation
The changes successful the backing operation could propulsion the section bodies to pivot much towards gross generating projects alternatively than welfare-oriented ones.
As per the operational guidelines for the implementation of projects nether the UCF, the States are required to represent organization mechanisms, including a State High Powered Steering Committee (SHPSC) and State Level Technical Committee (SLTC), for appraisal, monitoring and support of projects. The State authorities has designated the Mission Director, Atal Mission for Rejuvenation and Urban Transformation (AMRUT), arsenic the State Mission Director for the Urban Challenge Fund.
The authorities has besides accorded support to the Principal Secretary of the Local Self-Government section for signing the Memorandum of Understanding with the Ministry of Housing and Urban Affairs for information and implementation of the UCF successful Kerala.
