GG News Bureau
New Delhi, 1st Feb. Union Finance Minister Nirmala Sitharaman, in her Budget 2025-26 presentation on Saturday, announced a ₹1 lakh crore Urban Challenge Fund to enhance urban infrastructure and drive economic growth. The fund will support projects under ‘cities as growth hubs’, ‘creative redevelopment of cities’, and ‘water and sanitation’ initiatives.
The government will finance up to 25% of bankable projects, with at least 50% of the cost sourced from bonds, bank loans, or public-private partnerships (PPPs). An initial allocation of ₹10,000 crore has been proposed for the upcoming fiscal year.
Affordable Housing Boost
Sitharaman highlighted the progress under the Special Window for Affordable and Mid-Income Housing (SWAMIH), stating that 50,000 dwelling units have been completed, providing relief to homebuyers in stalled projects. Another 40,000 units are expected to be completed in 2025.
To accelerate housing project completion, the government will launch SWAMIH Fund 2, a ₹15,000 crore blended finance facility with contributions from the government, banks, and private investors. This fund aims to deliver an additional one lakh housing units.
Street Vendors’ Scheme Expansion
The Finance Minister also announced an expansion of the PM Street Vendor’s AtmaNirbhar Nidhi (PM SVANidhi) scheme. Enhancements include:
- Higher loan limits for street vendors
- UPI-linked credit cards with a ₹30,000 limit
- Capacity-building support
PM SVANidhi has already benefitted 68 lakh street vendors, helping them avoid high-interest informal sector loans.
These measures underline the government’s push for urban infrastructure development, affordable housing, and financial inclusion for small businesses.
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