Guwahati, April 28, 2026: Assam Chief Secretary Dr. Ravi Kota, IAS, on Tuesday chaired a preliminary review meeting with officials from the Department of Housing and Urban Affairs and other key departments to formulate a roadmap for implementing projects under the Government of India's Urban Challenge Fund (UCF). The meeting focused on identifying priority urban development projects that could transform cities and towns across Assam through sustainable infrastructure and innovative financing.
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| Ravi Kota chairs a meeting with officials in Guwahati to review Urban Challenge Fund projects aimed at strengthening urban infrastructure in Assam. (Image: x.com/CSAssam_) |
Senior officials reviewed a range of proposals aimed at strengthening urban infrastructure, with particular emphasis on redevelopment projects in Guwahati and other urban centres. Among the key initiatives discussed were comprehensive stormwater drainage systems, sponge infrastructure for flood mitigation, satellite township development, transit-oriented development corridors, and improvements to essential civic infrastructure, including road drainage, street lighting, and public amenities.
The Urban Challenge Fund, announced by the Government of India, provides a Central Assistance outlay of ₹1,00,000 crore for the period FY 2025–26 to FY 2030–31. The scheme seeks to accelerate urban transformation by encouraging cities to leverage market-based financing mechanisms such as institutional loans, municipal bonds, and public-private partnerships (PPPs), reducing dependence on conventional government funding.
Officials noted that under the UCF guidelines, Central Assistance is limited to 25 per cent of the total project cost, while at least 50 per cent of project financing must be mobilised through market sources or PPP models. The remaining share is expected to be contributed by state governments or Urban Local Bodies (ULBs). This financing structure, officials observed, underscores the need for stronger financial planning, institutional capacity, and creditworthiness among ULBs.
The meeting also reviewed the Credit Repayment Guarantee Sub-Scheme (CRGSS), which has a dedicated allocation of ₹5,000 crore. The scheme is designed to improve the ability of Urban Local Bodies to access institutional credit by providing partial guarantees and other financial risk-mitigation mechanisms, thereby encouraging greater private investment in urban infrastructure.
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According to officials, Assam has the potential to secure around ₹990 crore in Central Assistance under the Urban Challenge Fund, which could unlock an estimated ₹3,960 crore in total urban infrastructure investments during the mission period.
Dr. Ravi Kota directed all concerned departments to prepare a consolidated pipeline of projects, assess the readiness of Urban Local Bodies, and strengthen coordination among implementing agencies. He stressed the importance of developing technically sound, financially viable, and bankable projects to ensure timely approval and implementation under the Urban Challenge Fund, enabling Assam's cities to become more resilient, sustainable, and future-ready.
