What is the total worth of the Urban Challenge Fund (UCF) announced in the Union Budget 2025–26 to encourage innovative urban development?

Correct option is C

The correct answer is (c) Rs. 1 lakh crore.

Explanation:

• The Union Budget 2025–26 announced a ₹1 lakh crore Urban Challenge Fund (UCF).

• It aims to support innovative urban planning and sustainable infrastructure projects.

• The fund operates through a challenge-based approach to reward effective, modern, and scalable urban development models.

• An initial allocation of ₹10,000 crore was earmarked for FY 2025–26.

• The UCF will finance up to 25% of eligible project costs.

Information Booster:

• Cities must mobilize at least 50% of project funding through bonds, bank loans, or PPP models.

• The scheme encourages financial discipline, innovation, and self-sustaining urban growth.