The Maharashtra government is preparing to propose an Urban Challenge Fund aimed at strengthening urban infrastructure and supporting the overall development of cities across the state, Chief Minister Devendra Fadnavis announced on Monday.
Chairing a review meeting of the Urban Development Department at his official residence, Varsha, Fadnavis said cities should be viewed as engines of economic growth and equipped with innovative financing mechanisms to speed up infrastructure development. He said the proposed fund would help address financial, administrative and institutional challenges that often delay urban projects.
CM Fadnavis asserted, “Cities should be treated as centres of growth, and development should be facilitated through an Urban Challenge Fund to remove obstacles in their progress. This innovative initiative will bring about creative changes in urban development and significantly improve urban infrastructure and service delivery.”
The meeting was attended by Minister of State for Urban Development Madhuri Misal, Additional Chief Secretary (Finance and Planning) O.P. Gupta, Additional Chief Secretary (Urban Development) Dr K.H. Govindraj, Additional Chief Secretary to the Chief Minister Lokesh Chandra, Principal Secretary Dr Shrikar Pardeshi and other senior officials.
During the meeting, officials discussed a financial framework for the proposed Urban Challenge Fund, which is expected to support projects with a total outlay of ₹90,000 crore.
Under the proposal, Maharashtra is expected to secure urban infrastructure projects worth ₹44,800 crore. This includes ₹11,200 crore each from the Central and Maharashtra governments, while the remaining ₹22,400 crore is proposed to be raised through market-based financing mechanisms.
Officials said the fund would supplement existing Central and State urban development schemes by creating an additional source of financing for infrastructure projects.
Fadnavis noted that Maharashtra has already adopted innovative funding models, citing Nashik and Pune municipal corporations, which raised funds for water supply and sanitation projects through similar mechanisms approved by the National Apex Committee (NAC).
The state also plans to implement similar financing models for projects in Pimpri-Chinchwad and Nagpur municipal corporations.
According to officials, the Urban Challenge Fund will mobilise resources through debt bonds and Public-Private Partnership (PPP) models, providing urban local bodies with greater financial flexibility while accelerating infrastructure development and improving urban governance across Maharashtra.
Source: Mid-day
