An urban challenge fund of ₹1 lakh crore for transforming cities into “growth hubs”, ₹15,000 crore SWAMIH 2.0 fund (special window for affordable and mid-income housing) for the construction of 100,000 stuck housing units, and a revamped PM SVANidhi (Street Vendors AtmaNirbhar Nidhi) scheme were the major announcements Union finance minister Nirmala Sitharaman made for the urban sector in her Budget speech on Saturday.
The finance minister said that urban development is among the six key areas where the budget aims at “transformative” reforms, along with taxation, the financial sector, the power sector, mining, and regulatory reforms.
The FM also announced the second asset monetisation plan, which aims to enhance government revenue and optimise public assets for FY2025-30 and infuse a capital of ₹10 lakh crore in new projects.
Under the urban challenge fund, Sitharaman said the government would fund 25% of all bankable projects, while 50% of the funding for projects must be from bonds, bank loans and public-private partnerships (PPP).
She said ₹10,000 crore has been earmarked for FY2025-26 and the outlay of ₹1.5 lakh crore for 50-year interest-free loans to states for capital expenditure and infrastructure will continue.
Among the new initiatives, Sitharaman said each infrastructure ministry would be asked to prepare a three-year project pipeline and the states would be urged to do the same. For this, states can seek support from the India Infrastructure Project Development Fund.
She also said PM SVANidhi scheme will be revamped with enhanced loans from banks, UPI-linked credit cards with ₹30,000 limit, and capacity-building support. Already, 6.8 million street vendors have benefitted from the scheme, the FM said.
The central government will also facilitate identity card issuance and registration on the e-Shram portal for gig workers, providing insurance coverage for nearly 10 million gig economy workers under the PM Jan Arogya Yojana, she said. However, there was no mention of the much-anticipated urban livelihoods mission, or Deendayal Antyodaya Yojana – National Urban Livelihood Mission (DAY-NULM) 2.0.