New Delhi, Feb 1 (PTI) The government will set up an Urban Challenge Fund of Rs 1 lakh crore to finance up to 25 per cent of bankable projects and allocated Rs 10,000 crore for 2025-26, Finance Minister Nirmala Sitharaman said on Saturday.

She said the fund will be used to implement the proposals for cities as growth hubs, and creative redevelopment.

Also Read | Union Budget 2025-26: Government To Launch INR 2-Crore Term Loan for 5 Lakh First-Time Women, SC, ST Entrepreneurs, Says FM Nirmala Sitharaman (Watch Video).

Sitharaman also announced measures for electricity distribution and improving the financial health of DISCOMS (distribution companies).

Additional borrowing of 0.5 per cent of state GDP to be allowed to strengthen electricity distribution and transmission companies, the finance minister said, adding that with a corpus of Rs 25,000 crore, a Maritime Development fund would be set up for distributing support and promoting competition.

Also Read | Union Budget 2025-26: Finance Minister Nirmala Sitharaman Announces PM Dhan Dhyan Krishi Yojana To Boost Productivity, Says 1.7 Crore Farmers Will Be Benefitted (Watch Video).

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)