CS reviews implementation strategy for UCF in J&K
Jammu, Apr 06: In a significant move aimed at reshaping the urban landscape of Jammu and Kashmir, Chief Secretary Atal Dulloo on Monday chaired a high-level review meeting to chart out a roadmap for the implementation of the ambitious Urban Challenge Fund (UCF) in the Union Territory. The deliberations focused on identifying viable, bankable projects and leveraging innovative financing models to accelerate infrastructure development.
Emphasising the transformative potential of the scheme, the Chief Secretary directed all concerned departments to strictly adhere to the guidelines while finalising projects. He underlined that the UT must optimally utilise the opportunity to upgrade urban infrastructure and enhance the livability of cities, making them more citizen-centric and sustainable.
A key highlight of the meeting was the innovative funding mechanism under UCF, wherein central assistance will be limited to 25 percent of the total project cost. The remaining funds are to be mobilised through market-based instruments such as municipal bonds, bank loans, and public-private partnerships. This blended financing model is expected to reduce dependence on traditional budgetary support while ensuring long-term financial sustainability.
The Chief Secretary instructed officials to shortlist at least a dozen high-impact projects across the twin cities, focusing on sectors such as urban mobility, parking infrastructure, housing, and beautification. He stressed the importance of preparing quality, bankable proposals in a time-bound manner to fully tap the scheme’s potential.
During the meeting, experts from the Ministry of Housing and Urban Affairs and financial institutions shared insights into best practices and implementation strategies. The need to draw lessons from previous PPP projects was also highlighted to avoid execution bottlenecks. Representatives from J&K Bank, National Housing Bank, and HUDCO expressed readiness to support the UT in mobilising financial resources and building institutional capacity.
Officials informed that the Urban Challenge Fund, with a national outlay of ₹1 lakh crore, aims to bring about a paradigm shift in urban development by promoting revenue-generating and sustainable infrastructure. The scheme will be implemented over five years starting FY 2026 and will cover a wide range of urban local bodies, including Tier-II and Tier-III cities.
The fund focuses on key areas such as economic growth hubs, urban redevelopment, and water and sanitation, with interventions ranging from transit-oriented development and heritage revitalisation to integrated water supply and climate-resilient infrastructure.
Reaffirming the importance of the initiative, the Chief Secretary described UCF as a major opportunity to accelerate urban transformation in J&K, strengthen economic growth centres, and significantly improve the quality of life for its citizens.
