Begin long-term urban projects via centre-state-city partnerships

The promise was to begin long-term urban infrastructure projects through centre-state-city partnerships. The Urban Challenge Fund is a relevant mapped mechanism because it is designed to support Cities as Growth Hubs, Creative Redevelopment of Cities and Water and Sanitation through challenge-based financing and local project preparation. Cabinet approved the Rs 1 lakh crore fund in February 2026 and MoHUA launched operational guidelines in April 2026 for implementation from FY 2025-26 to FY 2030-31. This shows a credible governance and financing framework, but the evidence found in this batch is still mainly approval, guidelines and institutional design rather than grounded city projects delivered under the new mechanism. Therefore the status remains partial, not fulfilled. Budget: direct mapped allocation exists through the Cabinet-approved Rs 1 lakh crore Urban Challenge Fund, including budget support for FY 2025-26, but project-level utilisation evidence was not found.