Tue, 29 Sep 2026 · LIVE
Updated Jul 17, 2026 · 19:55
Gujarat News Updated Jul 17, 2026

PM Modi's Urban Challenge Fund Approves Rs 2,719 Crore for Ahmedabad Projects

The Ministry of Housing and Urban Affairs has approved six ambitious projects worth Rs 2,719.80 crore for Ahmedabad under PM Modi's Urban Challenge Fund. These projects include rehabilitation of sewerage networks, an Intelligent Water Management System, and a 125 TPD Integrated Sludge Management Facility. The Integrated Transit Management System and Automated Fare Collection System will provide seamless travel through a Common Mobility Card for AMTS, BRTS, and Metro services. These initiatives aim to transform Ahmedabad into a smarter, cleaner, and more resilient city with efficient urban infrastructure.

PM Modi's Urban Challenge Fund approves Rs 2,719 crore for six ambitious projects in Ahmedabad

Gandhinagar, 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.

— ANI

Reader Comments

Sneha M

The ITMS and Common Mobility Card is the best part for daily commuters like me. No more juggling multiple passes for AMTS and BRTS! But I hope they keep the fare reasonable for middle-class families. Also, please ensure the app works smoothly from day one - we've seen too many digital flops before.

Vikram P

Rs 679 crore from central government and same from state - that's proper coordination! But I'm skeptical about the 50% loan part. Municipal corporations already have huge debts. Will this lead to higher property tax or water bills? Need more transparency on repayment.

Ananya R

Biogas from sewage sludge? That's circular economy thinking! 🌱 If they can actually generate green energy from waste, it'll set a great example for other Indian cities. Ahmedabad is becoming truly smart - water management, transit integration, and now waste-to-energy. Proud moment for Gujarat!

Naveen S

Good intentions but let's not forget past delays. The Sabarmati Riverfront project took way longer than promised. Hope these six projects have clear timelines - especially the sewerage work which affects thousands daily. Also, while Rs 2,719 crore sounds big, Ahmedabad needs even more investment in urban infrastructure.

Priya T

The Intelligent Water Management System is crucial - we waste so much water due to leaks and poor monitoring. With real-time digital monitoring, we can save crores of litres annually! 👏 And the Common Mobility Card will make travel seamless. Finally, Ahmedabad is catching up with global standards.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

Reader Voices

Leave a comment

Be kind. Add to the conversation. 0/50
Thank you — your comment has been submitted.
JS blocked