Himachal seeks ₹1,350-cr central share under Urban Challenge Fund

Singh urged support from the Government of India to facilitate resource mobilisation under the Urban Challenge Fund, including enabling access to institutional finance and innovative funding mechanisms.

Singh stated that private sector participation in redevelopment projects is limited due to terrain-related constraints and lower commercial viability. He urged relaxations for hill and special category states, including population criteria and a modification of the funding pattern by reducing the mandatory mobilization of 50% of project cost through bonds, bank loans, and PPPs; he also pressed for higher central assistance or viability gap funding.

The state government proposed projects amounting to approximately ₹5,400 crore under the Urban Challenge Fund and sought ₹1,350 crore as the central government share, citing the small size and limited revenue base of urban local bodies.

PWD and urban development minister Vikramaditya Singh participated in a meeting in New Delhi chaired by Union minister for housing and urban affairs Manohar Lal Khattar to discuss the Urban Challenge Fund and related modalities.