NEW DELHI: The government will set up an Urban Challenge Fund of Rs 1 lakh crore to finance up to 25 per cent of bankable projects and allocated Rs 10,000 crore for 2025-26, Finance Minister Nirmala Sitharaman said on Saturday.
She said the fund will be used to implement the proposals for cities as growth hubs, and creative redevelopment.
Sitharaman also announced measures for electricity distribution and improving the financial health of DISCOMS (distribution companies).
Additional borrowing of 0.5 per cent of state GDP to be allowed to strengthen electricity distribution and transmission companies, the finance minister said, adding that with a corpus of Rs 25,000 crore, a Maritime Development fund would be set up for distributing support and promoting competition.