13 July,2026 09:52 PM IST | Mumbai | mid-day online correspondent
Fadnavis unveils plan for Urban Challenge Fund to finance city infrastructure (File pic)
Chief Minister Devendra Fadnavis on Monday said that an Urban Challenge Fund should be created to drive the holistic development of cities.
CM Fadnavis, while stating that urban centres must be treated as growth hubs, also said that these centres should also be provided with innovative financing mechanisms to accelerate infrastructure projects.
While chairing a review meeting of the Urban Development Department at his official residence, Varsha, Fadnavis said that the proposed fund would help overcome financial, institutional and administrative hurdles that often delay urban development works.
CM Fadnavis asserted, "Cities should be treated as centres of growth, and development should be facilitated through an Urban Challenge Fund to remove obstacles in their progress. This innovative initiative will bring about creative changes in urban development and significantly improve urban infrastructure and service delivery."
The meeting at his residence was also attended by Minister of State for Urban Development Madhuri Misal, Additional Chief Secretary (Finance and Planning) O.P. Gupta, Additional Chief Secretary (Urban Development) Dr K.H. Govindraj, Additional Chief Secretary to the Chief Minister Lokesh Chandra, Principal Secretary Dr Shrikar Pardeshi, and other senior officials.
During the meeting, officials discussed the proposed financial framework for the Urban Challenge Fund, under which the mission is expected to have a total project outlay of Rs 90,000 crore.
According to the proposal, Maharashtra could secure projects worth Rs 44,800 crore, comprising:
Officials said that the initiative would complement existing Central and State government urban development schemes by providing an additional financing avenue for infrastructure projects.
Fadnavis noted that Maharashtra has already taken steps towards innovative urban financing. The Chief Minister also pointed out that the Nashik and Pune Municipal Corporations had earlier raised funds for water supply and sanitation projects through similar mechanisms, with the proposals receiving approval from the National Apex Committee (NAC).
While highlighting the ongoing process, the Maharashtra CM also said that similar funding models would now be adopted for projects undertaken by the Pimpri-Chinchwad and Nagpur Municipal Corporations.
Officials said the proposed Urban Challenge Fund would mobilise resources through debt bonds and Public-Private Partnership (PPP) models, enabling cities to implement large-scale infrastructure projects without relying solely on government grants.
The state government believes the Urban Challenge Fund will provide cities with greater financial flexibility while accelerating infrastructure creation and improving urban governance across Maharashtra.
