PM Modi's Urban Challenge Fund approves Rs 2,719 crore for six ambitious projects in Ahmedabad
Jul 17, 2026
Gandhinagar (Gujarat) [India], July 17 : Under the Urban Challenge Fund initiated by Prime Minister Narendra Modi to bring transformative changes in urban development across the country, the Ministry of Housing and Urban Affairs, Government of India, has approved projects worth a total of Rs. 2,719.80 crore for six ambitious projects in Ahmedabad.
According to a press release issued by the Chief Minister's office, the projects approved by the Ministry of Housing and Urban Affairs include Rs. 852.93 crore for the rehabilitation of the main sewerage network in West Ahmedabad, Rs. 551.35 crore for the rehabilitation of the main sewerage network in East Ahmedabad, Rs. 290.24 crore for the rehabilitation of old sewerage networks in various parts of Ahmedabad city, Rs. 215 crore for the Intelligent Water Management System, Rs. 479.25 crore for a 125 TPD Integrated Sludge Management Facility, and Rs. 331.03 crore for ITMS and AFCS.
Once these projects become operational, the rehabilitation of Ahmedabad's sewerage network will significantly reduce problems such as sewerage overflows and leakages. In addition, real-time digital monitoring and smart management of the entire sewerage and stormwater system will become possible.
Furthermore, the production of biogas and green energy from sewage sludge will promote an environmentally friendly circular economy.
The Integrated Transit Management System (ITMS) and Automated Fare Collection System (AFCS) will provide citizens with seamless travel through a Common Mobility Card and Common Journey Application for AMTS, BRTS, and Metro services. Citizens will also benefit from accurate and real-time public transport information, AI-enabled route planning, and enhanced incident management through modern in-bus surveillance, ensuring safer and more secure travel, the press release said.
These projects will mark significant progress towards making Ahmedabad a smarter, cleaner, more resilient, and globally competitive city. Efficient, sustainable, and future-ready urban infrastructure will be developed, enabling citizens to receive higher-quality civic services.
Under the leadership of Chief Minister Bhupendra Patel, the vision of citizen-centric, technology-based, and sustainable urban development will be further strengthened through the approval of these projects under the Urban Challenge Fund.
Inspired by PM Modi, the Ministry of Housing and Urban Affairs, Government of India, launched the Urban Challenge Fund to encourage cities across the country to adopt market-based financing and balanced regional development. Over a period of five years, the fund will provide total central assistance of Rs. 1 lakh crore to support market-led urban transformation, the release stated.
Under this scheme, projects can be undertaken across three verticals: Creative Redevelopment of Cities, Cities as Growth Hubs, and Water and Sanitation.
Gujarat has been allocated Rs. 6,475 crore in central assistance under the Urban Challenge Fund, enabling cities across the state to undertake projects worth a total of Rs. 25,900 crore under this initiative.
Under the funding pattern of the scheme, 25 per cent of the project assistance will be provided by the Central Government, 25 per cent by the State Government, and the remaining 50 per cent will be mobilised through municipal bonds, loans, or Public-Private Partnership (PPP), the release said.
Accordingly, Ahmedabad Municipal Corporation will receive Rs. 679.95 crore as Central Government assistance and Rs. 679.95 crore as State Government assistance for these six projects, while the remaining amount will be financed through loans by the Ahmedabad Municipal Corporation.