Nirmala Sitharaman.
Credit: PTI photo
New Delhi: To boost urban infrastructure, Union Finance Minister Nirmala Sitharaman on Saturday announced that the government will set up an Urban Challenge Fund of Rs 1 lakh crore to implement the proposals for 'cities as growth hubs', 'creative redevelopment of cities' and 'water and sanitation'.
Presenting the Union Budget 2025-26, Sitharaman said the fund will finance up to 25 per cent of the cost of bankable projects with a stipulation that at least 50 per cent of the cost is funded by bonds, bank loans, and public-private partnerships (PPPs).
An allocation of Rs 10,000 crore has been proposed for 2025-26, she said.
The finance minister also said that under the Special Window for Affordable and Mid-Income Housing (SWAMIH), 50,000 dwelling units have been completed in the stressed housing projects, with keys handed over to the homebuyers.
Another 40,000 units will be completed in 2025, further helping middle-class families which were paying EMIs on loans taken for apartments, while also paying rent for their current dwellings, she said.
"Building on this success, a SWAMIH Fund 2 will be established as a blended finance facility with contributions from the government, banks and private investors. This fund of Rs 15,000 crore will aim for expeditious completion of another one lakh units," Sitharaman said.
The finance minister also announced that the PM Street Vendor's AtmaNirbhar Nidhi (PM SVANidhi) will be revamped with enhanced loans from banks, UPI-linked credit cards with Rs 30,000 limit, and capacity-building support.
The scheme has benefitted more than 68 lakh street vendors, giving them respite from high-interest informal sector loans, she said.
PM SVANidhi is a special micro-credit facility for providing affordable loans to street vendors.
Union Budget 2025 | Nirmala Sitharaman, as Finance Minister, presented her record 8th Union Budget this time. While inflation has burnt a hole in the pockets of 'aam janata', the Modi govt gave income tax relief for those making up to Rs 12 lakh per year in salaried income. Track the latest coverage, live news, in-depth opinions, and analysis only on Deccan Herald. Also follow us on WhatsApp, LinkedIn, X, Facebook, YouTube, and Instagram.