
The Centre on Saturday announced allocations to boost urban infrastructure and support affordable housing. While presenting the Union Budget, Finance Minister Nirmala Sitharama said that building on the July Budget proposals, urban sector reforms related to governance, municipal services, urban land, and planning would be incentivised.
The Finance Minister said that the Government would 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’; announced in the July Budget.
“This fund will finance up to 25 percent of the cost of bankable projects with a stipulation that at least 50 per cent of the cost is funded from bonds, bank loans, and public private partnerships (PPPs). An allocation of Rs 10,000 crore is proposed for 2025-26,” announced the minister.
While presenting the budget, the finance minister also highlighted the PM SVANidhi scheme stating that it had benefited more than 68 lakh street vendors giving them respite from high-interest informal sector loans. Building on this success, the scheme will be revamped with enhanced loans from banks, UPI linked credit cards with Rs 30,000 limit, and capacity building support, Sitharaman said.
Under the Special Window for Affordable and Mid-Income Housing (SWAMIH) 50,000 dwelling units in stressed housing projects have been completed, and keys handed over to home-buyers, she stated. Another 40,000 units will be completed in 2025, further helping middle-class families who were paying EMIs on loans taken for apartments, while also paying rent for their current dwellings.
In November 2019, the Centre announced a stress fund named 'Special Window for Affordable and Mid-Income Housing' (SWAMIH), to complete stalled housing projects across states. The fund is being managed by SBICAP Ventures Ltd, a State Bank Group company.
“Building on this success, 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,” the minister announced.
Sitharaman said that the Government has been giving priority to assisting urban poor and vulnerable groups. A scheme for socio-economic upliftment of urban workers will be implemented to help them improve their incomes, have sustainable livelihoods and a better quality of life, she added.
In the budget, the Government has also proposed a National Geospatial Mission to develop foundational geospatial infrastructure and data. Using PM Gati Shakti, this Mission will facilitate modernization of land records, urban planning, and design of infrastructure projects.