JAMMU, April 06: Chief Secretary Atal Dulloo on Monday chaired a high-level meeting to review the implementation strategy for the Urban Challenge Fund (UCF) in Jammu and Kashmir, directing departments to identify bankable, guideline-compliant projects for time-bound execution.
The meeting attended by senior administrative secretaries and officials of the Housing and Urban Development Department, focused on outlining a roadmap for leveraging the fund to upgrade urban infrastructure and enhance liveability across the Union Territory.
Emphasising the transformative potential of the scheme, the Chief Secretary urged departments to strictly adhere to prescribed guidelines while selecting projects. He noted that the fund offers a significant opportunity to modernise urban centres and called for its optimal utilisation to create citizen-friendly cities.
Officials informed that central assistance under the UCF would be limited to 25 per cent of the total project cost, aimed at catalysing at least 50 per cent funding through market-based sources such as bonds, bank loans and public-private partnerships. The blended financing model is designed to promote financial sustainability and reduce reliance on conventional budgetary support.
Directing focused action, Dulloo asked departments to shortlist at least a dozen viable projects across the twin cities in sectors including urban mobility, parking, housing and beautification. He stressed the importance of preparing high-quality, bankable proposals to fully harness the scheme’s potential.
At the outset, Gurjeet Singh Dhillon presented a detailed overview of the scheme, highlighting its funding architecture and implementation framework, and noted that a majority of urban areas in J&K could be brought under its ambit.
Additional Chief Secretary Finance Shailendra Kumar underscored the need to focus on viable, revenue-generating projects and advised drawing lessons from past public-private partnership initiatives to avoid implementation bottlenecks.
Managing Director Jammu and Kashmir Bank, Amitava Chatterjee, shared insights on best practices in market-based financing and assured institutional support for capacity building and access to funding mechanisms.
Divisional Commissioners also identified several potential city development and housing projects, while representatives from the National Housing Bank and Housing and Urban Development Corporation expressed interest in partnering for project execution.
Commissioner Secretary Housing and Urban Development Mandeep Kaur informed that the Urban Challenge Fund, with a national outlay of ₹1 lakh crore, aims to drive a paradigm shift in urban development through sustainable, revenue-generating infrastructure. Of this, ₹90,000 crore is earmarked for infrastructure projects, while ₹5,000 crore each has been allocated for project preparation, capacity building and credit repayment guarantees.
The meeting was also apprised that the scheme, to be implemented over five years from FY 2026, will cover a wide range of urban local bodies, including major cities, industrial towns and those in hilly regions, with a focus on Tier-II and Tier-III cities.
Three key strategic verticals—growth hubs, creative redevelopment and water and sanitation—were outlined, with proposed interventions including economic corridors, transit-oriented development, heritage revitalisation and climate-resilient infrastructure.
Officials further informed that Memoranda of Understanding between the Ministry of Housing and Urban Affairs and the Union Territory would be signed shortly, formally launching the programme.
Reiterating the significance of the initiative, the Chief Secretary said the Urban Challenge Fund presents a major opportunity to accelerate urban transformation, strengthen economic growth centres and substantially improve the quality of life in cities across Jammu and Kashmir.
