Sat Feb 01 06:34:30 UTC 2025: ## ₹1 Lakh Crore Urban Challenge Fund Announced in Union Budget 2025

**New Delhi, February 1, 2025** – Finance Minister Nirmala Sitharaman announced a significant boost to urban development in the Union Budget 2025, unveiling a ₹1 lakh crore Urban Challenge Fund. This fund will finance up to 25% of bankable projects aimed at developing cities as growth hubs and fostering creative redevelopment. An initial allocation of ₹10,000 crore has been earmarked for the 2025-26 fiscal year.

The budget also includes measures to improve the financial health of electricity distribution companies (DISCOMs). States will be allowed additional borrowing of 0.5% of their GDP to strengthen electricity distribution and transmission infrastructure. Furthermore, a ₹25,000 crore Maritime Development Fund will be established to support and promote competition within the maritime sector.

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