PWD and urban development minister Vikramaditya Singh said that the state government has proposed projects amounting to approximately ₹5,400 crore under the Urban Challenge Fund (UCF) to create robust infrastructure and vibrant economic hubs in urban areas of the state.
He requested the earmarking of ₹1,350 crore to Himachal Pradesh as the central government share, keeping in view the small size and limited revenue base of the urban local bodies. Singh participated in a meeting held under the chairmanship of Union minister for housing and urban affairs Manohar Lal Khattar in New Delhi on Saturday where detailed discussions were held on the Urban Challenge Fund during the meeting.
“The private sector participation in re-development projects remains limited due to terrain-related constraints and lower commercial viability,” he said.
The minister also demanded specific relaxations for hill and special category states like Himachal Pradesh under the Urban Challenge Fund keeping in view these challenges. He stressed upon suitable relaxation in the population criteria prescribed for coverage, and modification of the funding pattern by reducing the mandatory requirement of mobilizing 50 percent of the project cost through bonds, bank loans and PPPs.
He urged for considering a higher proportion of central assistance or viability gap support while finalising the modalities, keeping in view the limited financial capacity of the urban local bodies and low private sector participation in hill regions.
{{/usCountry}}He urged for considering a higher proportion of central assistance or viability gap support while finalising the modalities, keeping in view the limited financial capacity of the urban local bodies and low private sector participation in hill regions.
{{/usCountry}}Singh also sought the support of the Government of India in facilitating resource mobilisation for the state under the Urban Challenge Fund, including enabling access to institutional finance and innovative funding mechanisms.