Smaller cities like Nashik and Warangal are expected to be among the first to tap into the Centre’s ₹4 lakh crore Urban Challenge Fund (UCF), which is set to roll out in April. Announced in the Union Budget, the scheme will support projects across three key areas: urban growth hubs, water and sanitation, and redevelopment of ageing infrastructure.
Under the funding model, at least 50% of project costs will be mobilised through market-based sources, while the Centre will contribute 25%, with the remaining share coming from states and urban bodies. The initiative aims to drive large-scale investment in urban infrastructure over the next five years.
Nashik is preparing projects worth over ₹1,000 crore, focusing on water supply upgrades, sewerage expansion, and mobility improvements ahead of the Simhastha Kumbh Mela. Meanwhile, Warangal is planning a major underground drainage project under the scheme.
Other cities, including Bhubaneswar, Cuttack, and Rourkela, are also preparing proposals. Experts say the early participation of smaller cities reflects improving project readiness, though the long-term success of the fund will depend on execution and financial sustainability.
