Kashmir Impulse Desk

Jammu, April 6

Senior officials in Jammu and Kashmir on Tuesday reviewed plans to implement a new urban development financing program, with an emphasis on identifying viable projects and leveraging private investment to modernize city infrastructure.

At a meeting chaired by the chief secretary, Atal Dulloo, officials discussed the roadmap for the Urban Challenge Fund, a centrally backed initiative aimed at reshaping urban development through market-driven financing models.

Dulloo urged departments to align proposed projects closely with the scheme’s guidelines and to prioritize initiatives that could be executed efficiently. 

He said the program offered “immense potential” to improve urban infrastructure and make cities more livable.

Under the framework presented, central assistance would account for only a quarter of project costs, with the remaining funding expected to be mobilized through bonds, bank financing and public-private partnerships. 

Officials described the approach as a way to reduce reliance on traditional budgetary support while encouraging financially sustainable projects.

Dulloo directed departments to identify at least a dozen projects in Jammu and Srinagar, focusing on areas such as urban mobility, housing, parking and city beautification. 

He emphasized the importance of preparing “bankable” proposals capable of attracting investment.

The meeting included participation from senior officials in finance and urban development, as well as representatives from financial institutions, who highlighted lessons from similar initiatives in other regions and offered support in structuring projects.

The Urban Challenge Fund, with a national allocation of Rs 1 trillion, is expected to be implemented over five years beginning in the 2026 fiscal year. 

It aims to support a broad range of urban local bodies, including smaller cities and those in hilly regions, with a focus on expanding infrastructure and economic activity.

Officials said the program would prioritize areas such as economic corridors, transit-oriented development, water and sanitation systems, and climate-resilient infrastructure, along with the use of digital technologies in urban management.

The initiative also includes provisions for project preparation, capacity building and credit guarantees, intended to help local bodies access financing.

Memorandums of Understanding between J&K and the Ministry of Housing and Urban Affairs are expected to be signed soon, marking the formal launch of the program.

Dulloo said the fund represented an opportunity to accelerate urban transformation in the region and strengthen its economic centers while improving quality of life for residents.