Ministry of Housing & Urban Affairs
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Urban Challenge Fund to Accelerate Urban Development in Chhattisgarh: Chief Minister Shri Vishnu Deo Sai

Urban local bodies urged to prepare bankable projects to leverage ₹1 lakh crore fund: Deputy Chief Minister Shri Arun Sao

Two key MoUs signed with HUDCO and CEPT University to strengthen urban planning, financing and institutional capacity

Posted On: 21 OCT 2026 6:56PM by PIB Raipur

Chief Minister Shri Vishnu Deo Sai on Wednesday called for planned, inclusive, sustainable and financially viable urban development to support the vision of Viksit Bharat and Viksit Chhattisgarh. Emphasising the growing role of cities as centres of economic activity, industry, trade, employment and innovation, he urged urban local bodies to prepare high-quality development projects that address both present needs and the requirements of future generations.

Shri Sai was speaking after inaugurating the first regional workshop on the Urban Challenge Fund (UCF) and Urban Investment Window (UiWIN), jointly organised by the Housing and Urban Development Corporation (HUDCO) and the Chhattisgarh Government’s Department of Urban Administration and Development at Mayfair Lake Resort in Nava Raipur.

The Chief Minister said urban development had gained fresh momentum under the leadership of Prime Minister Shri Narendra Modi. The Urban Challenge Fund offers a significant opportunity to make cities modern, well-equipped, economically strong and self-reliant, he said, adding that Chhattisgarh’s urban local bodies must make the most of the initiative by preparing quality projects that improve citizens’ quality of life and strengthen the local economy.

Two MoUs to Strengthen Urban Development
Two Memoranda of Understanding (MoUs) were signed during the workshop to improve urban development planning, financial resource mobilisation, technical expertise and institutional capacity. The first was signed between HUDCO and the Chhattisgarh Government’s Department of Urban Administration and Development, while the second was signed between the department and CEPT University.

Describing the agreements as an important step towards strengthening urban development in the state, Shri Sai said they would facilitate better project planning, access to financial resources, technical assistance, training and institutional capacity building for urban local bodies. The partnerships are expected to improve the preparation and implementation of projects tailored to the specific needs of cities.

The Chief Minister stressed that stronger coordination among government departments, financial institutions and specialised organisations was essential to prepare cities for future challenges.

Cities Central to the Vision of Viksit Bharat 2047
Shri Sai said the Prime Minister’s vision of a developed India by 2047 had also guided the Chhattisgarh Government in preparing its vision document for Viksit Chhattisgarh. The state government is working in mission mode to translate this vision into reality, he said.

He emphasised the need to develop cities that attract investment, create a favourable environment for industry and trade, generate employment opportunities and provide high-quality basic amenities. Planned urbanisation, he said, would form a strong foundation for the state’s long-term development.

Urging urban local bodies to adopt a long-term approach, Shri Sai said development plans must account for the needs of the coming decades. With urbanisation accelerating, comprehensive planning for drinking water, drainage, roads, electricity, sanitation and public transport has become essential.

Highlighting the recurring problem of urban waterlogging during the monsoon, he called for effective and sustainable drainage systems. He also drew attention to the hazards posed by unorganised overhead electricity and utility cables, stressing that underground cabling should be considered wherever feasible. Water supply, roads, electricity, drainage and sanitation projects, he said, must be integrated into a comprehensive urban planning framework.

Urban Local Bodies Urged to Prepare Future-Ready Projects
Addressing mayors, municipal council and nagar panchayat presidents, and officials, the Chief Minister said elected representatives had a significant responsibility to understand the actual needs of their cities and find lasting solutions to local problems.

He urged urban local bodies to study the provisions of the Urban Challenge Fund carefully, consult experts and prepare projects that are technically sound, economically viable and beneficial to citizens. He expressed confidence that the workshop’s technical guidance and expert recommendations would help give fresh direction to urban development in Chhattisgarh.

Referring to the Centre’s efforts to extend development benefits to the last mile, Shri Sai highlighted the Pradhan Mantri Janjati Adivasi Nyaya Maha Abhiyan (PM-JANMAN), which seeks to improve access to basic amenities, including roads, electricity, housing and drinking water, in habitations of Particularly Vulnerable Tribal Groups. He also referred to the Dharti Aaba Janjatiya Gram Utkarsh Abhiyan as an important initiative for the comprehensive development of tribal areas.

Highlighting improvements in railway infrastructure, the Chief Minister referred to the expansion of rail connectivity towards the Rowghat region in Bastar and the launch of rail services between Raipur and Kurud as significant developments for the state.

He said Chhattisgarh’s natural resources, mineral wealth, fertile land and hardworking people were among its greatest strengths. The gains made in the fight against Left-Wing Extremism had strengthened prospects for development and investment, he said, calling for collective efforts to enable Chhattisgarh to play a leading role in building a developed India by 2047.

₹1 Lakh Crore Urban Challenge Fund a Major Opportunity: Deputy Chief Minister Shri Arun Sao
Deputy Chief Minister and Minister for Urban Administration and Development Shri Arun Sao said the Government of India had provided for an Urban Challenge Fund of ₹1 lakh crore, creating a major opportunity for the development of cities in Chhattisgarh. The key challenge for urban local bodies was to prepare high-quality, viable projects that could attract maximum resources under the initiative, he said.

Shri Sao observed that technological advances and changing public expectations required urban local bodies to move beyond conventional approaches and adopt innovation and modern technology. He urged elected representatives to undertake projects during their tenure that would deliver lasting benefits to future generations.

Emphasising the importance of financial discipline, he said a project’s success depended not merely on its construction but also on its utility, operation, maintenance and financial viability. Ensuring the judicious use of public money was a collective responsibility, he added.

Financially Strong Urban Bodies Essential for Sustainable Growth: Union Minister of State Shri Tokhan Sahu
Union Minister of State for Housing and Urban Affairs Shri Tokhan Sahu said flagship initiatives such as the Pradhan Mantri Awas Yojana–Urban, Swachh Bharat Mission and Atal Mission for Rejuvenation and Urban Transformation (AMRUT) had expanded urban amenities and improved living standards.

With rapid urbanisation increasing demand for housing, drinking water, roads, transport and sanitation, urban local bodies must become financially stronger and more self-reliant, he said. The Urban Challenge Fund offers an important opportunity to address these requirements.

Shri Sahu stressed that development projects must be socially useful as well as financially viable. In addition to government assistance, urban bodies should explore bank financing, market-based resources and public-private partnerships to mobilise funds.

Referring to innovations such as waste-to-energy initiatives in Jabalpur and technology-enabled water management and monitoring in Hyderabad, he urged urban local bodies in Chhattisgarh to study successful models and adapt them to local conditions.

Workshop Focuses on Project Financing and Capacity Building
The workshop featured expert discussions on the Urban Challenge Fund and Urban Investment Window, resource mobilisation, project viability, modern urban planning and effective implementation. The MoUs with HUDCO and CEPT University are expected to support urban local bodies in project preparation, financial management, technical assistance, training and institutional capacity building.

Mayors of all 14 municipal corporations in Chhattisgarh, municipal council presidents and senior officials attended the workshop. Those present included Shri Sonmani Bora, Principal Secretary, Department of Urban Administration and Development; Shri Sanjay Kulshrestha, Chairman and Managing Director of HUDCO; Dr. T. K. Sridevi, Secretary, Department of Municipal Administration and Urban Development, Telangana; Shri Barjor Mehta, President of CEPT University; Shri Nilesh Mahadev Kshirsagar, Director, Department of Urban Administration and Development; and Shri Sumit Agrawal, Chief Executive Officer of the State Urban Development Agency (SUDA), along with public representatives, experts and senior officials.

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