1 month ago
Telangana to tap Urban Challenge Fund for Rs 10K cr
The Telangana Municipal Administration Department is looking to borrow Rs 10,000 crore in phases under the Urban Challenge Fund initiative by the Central Government.
This fund will be used for development works in urban local bodies (ULBs) in Telangana.
The state and central governments will each contribute 25% of the funds, while the municipalities will mobilize the rest through various means.
The funds will be used for projects like underground drainage works in Warangal, model roads, junction developments, and civic infrastructure in various cities.
The Central Government has already approved several projects, including Rs 4,574.6 crore for underground drainage in Warangal and Rs 630 crore for roads and other infrastructure in Karimnagar.
Telangana Municipal Administration Department is exploring loans under the Urban Challenge Fund initiative for Rs 10,000 crore in phases.
The state and central governments will each contribute 25% of the funds, with municipalities mobilizing the rest.
Funds will be used for development works in tier-2 and tier-3 cities and rapidly growing Gram Panchayats.
Approved projects include Rs 4,574.6 crore for underground drainage in Warangal and Rs 630 crore for roads and other infrastructure in Karimnagar.
Additional projects include model roads, junction developments, civic infrastructure, and an Integrated Command Control system in Karimnagar.
- Who
- Telangana Municipal Administration Department, Central Government, State Government
- What
- Exploring options to get loans under the Urban Challenge Fund initiative for development works in urban local bodies
- Where
- Telangana, India
- When
- Not specified
- Why
- To address the development needs of tier-2 and tier-3 cities and rapidly growing Gram Panchayats transitioning into Urban Local Bodies
State Government
Central Government
Funding Responsibility
State Government
The state government is responsible for mobilizing funds through municipal bonds, bank borrowings, and public-private partnerships.
Central Government
The central government shares the viability gap funding equally with the state government.
Key facts
- Total Fund Amount
- Rs 10,000 crore
- Matching Grant
- 50% (25% each by state and central government)
- Fund Utilization for Warangal
- Rs 4,574.6 crore for underground drainage works
- Fund Utilization for Karimnagar
- Rs 630 crore for roads, skywalks, foot over bridges, and others
- Fund Utilization for Model Roads and Civic Infrastructure
- Rs 8,40 crore
- Fund Utilization for Integrated Command Control in Karimnagar
- Rs 166.44 crore
- Fund Utilization for Modernization of Karimnagar Dumping Yard
- Rs 80 crore
- Fund Utilization for Drainage in Karimnagar
- Rs 130 crore











