Shimla, April 27
The Himachal Pradesh government has proposed urban infrastructure projects worth over Rs 5,400 crore under the Urban Challenge Fund to strengthen city infrastructure and develop economic hubs, with the proposal discussed at a meeting chaired by Union Housing and Urban Affairs Minister Manohar Lal Khattar in New Delhi.
Public Works and Urban Development Minister Vikramaditya Singh sought Rs 1,350 crore as the Center’s share for the state and called for relaxation of funding norms, citing geographical constraints and limited private-sector participation in hill regions. He said the existing funding pattern places pressure on states like Himachal Pradesh, where raising resources through market mechanisms remains challenging.
Singh highlighted that difficult terrain and lower commercial viability restrict private investment in redevelopment projects. He urged the Center to consider a higher share of central assistance and to ease the requirement to mobilize a significant portion of funds through loans and public-private partnerships. He also emphasized that urban infrastructure development is critical for the state due to increasing tourism and limited land availability.
The Urban Challenge Fund, approved by the Center earlier this year, aims to support reform driven projects in urban areas with a focus on sustainable development, mobility, and improved civic infrastructure. Under the current framework, a portion of the funding is to be provided by the Center, while the remaining amount is to be mobilized by states and urban local bodies.
The Center has asked the state government to prioritize and submit projects worth about Rs 1,100 to Rs 1,200 crore in the initial phase. Of this, 25 percent will be provided as central assistance, while the remaining funds will need to be arranged by the state through other sources.
The state government is expected to refine its proposals and engage further with the Center to secure approvals and financial support for the planned projects.
