Rs.1L Cr Challenge Fund Up for Grabs

New Delhi: The Union Cabinet, chaired by Narendra Modi, has approved the launch of the Urban Challenge Fund (UCF) with a central assistance of ₹1 lakh crore and sanctioned construction of the country’s first underwater road-cum-rail tunnel between Gohpur and Numaligarh in Assam at a cost of ₹18,662 crore.

Briefing reporters, Union Minister Ashwini Vaishnaw said the UCF will provide 25 per cent central assistance for projects, subject to at least 50 per cent funding being mobilised from the market. The initiative is expected to catalyse investments of about ₹4 lakh crore in the urban sector over the next five years.

The UCF will be operational from FY 2025–26 to FY 2030–31, with a possible extension till FY 2033–34. It will support cities with a population of 10 lakh or more, all State and Union Territory capitals, major industrial cities with a population above one lakh, and urban local bodies in hilly and northeastern States. A provision of ₹5,000 crore has been approved under a Credit Repayment Guarantee Scheme.

Projects will be selected through a challenge-based framework and linked to governance, financial and urban planning reforms. Monitoring will be undertaken through a digital portal of the Ministry of Housing and Urban Affairs.

The Cabinet also cleared a four-lane access-controlled greenfield corridor from Gohpur on NH-15 to Numaligarh on NH-715, including a 15.79-km road-cum-rail tunnel under the Brahmaputra river. At present, the 240-km road journey between the two points via the Kaliabhomora bridge takes about six hours.

The government said the project would improve connectivity in Assam and neighbouring northeastern States, enhance freight movement and generate around 80 lakh person-days of employment.