The Karnataka government has sought Rs 5,000 crore from the Centre under the newly approved Urban Challenge Fund to accelerate urban infrastructure development in the state. Deputy Chief Minister DK Shivakumar made the request during a meeting with Union Housing and Urban Affairs Minister Manohar Lal Khattar in New Delhi on Friday.
Urban Challenge Fund Details
The Union Cabinet recently approved the Urban Challenge Fund with a total outlay of Rs one lakh crore in central assistance. The fund aims to promote reform-driven urban transformation across Indian cities. It is designed to support projects that focus on improving urban governance, infrastructure, and service delivery.
Karnataka's Infrastructure Needs
Karnataka, home to the tech hub Bengaluru, faces significant urban challenges including traffic congestion, inadequate public transport, and poor waste management. The state government has identified several key projects that require immediate funding, including expansion of metro rail networks, development of smart roads, and implementation of integrated water management systems.
Shivakumar emphasized that the state's urban population is growing rapidly, putting immense pressure on existing infrastructure. He urged the Centre to release the funds at the earliest to help the state meet its urban development goals.
Reform-Driven Approach
The Urban Challenge Fund encourages states to adopt innovative reforms in urban planning and governance. Karnataka has already implemented several reforms, including the establishment of a single-window clearance system for building permits and the digitization of property tax collection. The state is also working on a comprehensive urban mobility plan to reduce congestion and promote sustainable transport.
The fund is expected to be disbursed in multiple tranches based on the progress of reforms and project implementation. States that demonstrate significant improvements in urban governance and service delivery will be eligible for additional funding.
Karnataka's request is part of a broader push by state governments to secure central funding for urban infrastructure projects. Several other states have also submitted proposals under the Urban Challenge Fund.
