HP seeks urban challenge fund support for proposed projects

Shimla: Himachal Pradesh PWD and urban development minister Vikramaditya Singh has proposed projects worth about Rs 5,400 crore under the central govt scheme Urban Challenge Fund.At a meeting chaired by Union minister Manohar Lal Khattar, he sought Rs 1,350 crore as the Centre's share, citing the state's limited urban revenue base.The PWD minister has also sought relaxations for hill and special category states like Himachal Pradesh under the Urban Challenge Fund, keeping in view the terrain challenges.Singh stressed on suitable relaxation in the population criteria prescribed for coverage, and modification of the funding pattern by reducing the mandatory requirement of mobilising 50% of the project cost through bonds, bank loans and PPPs, said the statement.He has also urged Khattar to consider a higher proportion of central assistance or viability gap support while finalising the modalities, keeping in view the limited financial capacity of urban local bodies and low private sector participation in hill regions, said the statement.He said the Urban Challenge Fund was of critical importance for a hill state like Himachal Pradesh, where nearly 90% of the area was mountainous and about 67% was under forest cover, leaving limited land for development. Urbanisation is further constrained by fragile ecology and rapidly rising tourist footfall, which places immense pressure on limited infrastructure, said the statement.The Union govt has also asked the HP govt to prioritise the projects and submit projects worth Rs 1,100 crore-Rs 1,200 crore, under which 25% will be released as central assistance and the remaining funds the state had to mobilise through PPP or loans from financial institutions, added the govt statement.
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