Government of India launches the Urban Challenge Fund (UCF)

Mitigation of Climate Change
February | 2026

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Description

The Government of India approved the Urban Challenge Fund (UCF) with INR 1,000 billion in central assistance to support market-led urban infrastructure investments under the themes of Cities as Growth Hubs, Creative Redevelopment of Cities, and Water & Sanitation.

The UCF creates a significant new funding mechanism for cities to implement sustainable urban mobility projects alongside broader urban infrastructure investments. It aligns closely with the project's work on Complete Streets, public transport, station area improvements, parking management, and integrated neighbourhood planning, creating opportunities to support cities in preparing high-quality projects for funding.