Urban Challenge Fund--Catalyzing Transformation in Indian Cities (ADB-59405-001)

Regions
  • South Asia
Geographic location where the impacts of the investment may be experienced.
Countries
  • India
Geographic location where the impacts of the investment may be experienced.
Financial Institutions
  • Asian Development Bank (ADB)
International, regional and national development finance institutions. Many of these banks have a public interest mission, such as poverty reduction.
Project Status
Approved
Stage of the project cycle. Stages vary by development bank and can include: pending, approval, implementation, and closed or completed.
Bank Risk Rating
U
Environmental and social categorization assessed by the development bank as a measure of the planned project’s environmental and social impacts. A higher risk rating may require more due diligence to limit or avoid harm to people and the environment. For example, "A" or "B" are risk categories where "A" represents the highest amount of risk. Results will include projects that specifically recorded a rating, all other projects are marked ‘U’ for "Undisclosed."
Voting Date
Dec 9, 2025
Date when project documentation and funding is reviewed by the Board for consideration and approval. Some development banks will state a "board date" or "decision date." When funding approval is obtained, the legal documents are accepted and signed, the implementation phase begins.
Borrower
Government of India
A public entity (government or state-owned) provided with funds or financial support to manage and/or implement a project.
Sectors
  • Infrastructure
The service or industry focus of the investment. A project can have several sectors.
Investment Type(s)
Advisory Services
The categories of the bank investment: loan, grant, guarantee, technical assistance, advisory services, equity and fund.
Investment Amount (USD)
$ 2.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Grant Amount (USD)
$ 2.00 million
Value listed on project documents at time of disclosure. If necessary, this amount is converted to USD ($) on the date of disclosure. Please review updated project documents for more information.
Primary Source

Original disclosure @ ADB website

Updated in EWS Feb 5, 2026

Disclosed by Bank Dec 18, 2025


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Project Description
If provided by the financial institution, the Early Warning System Team writes a short summary describing the purported development objective of the project and project components. Review the complete project documentation for a detailed description.

The technical assistance investment aims to support India for operationalizing and implementing the Urban Challenge Fund (UCF) to contribute to the catalytic urban transformation and development of livable cities by designing bankable projects and strengthening the capacity of states and urban local bodies.

The main objective of the TA is to support the Ministry of Housing and Urban Affairs (MOHUA) in developing and operationalizing the UCF through (a) providing policy advice, capacity building and knowledge support with international best practice and technical support at the national level, (b) help cities to prepare strategies, sector assessments, masterplans or action plans or legal and regulatory frameworks for urban sector reform, market assessments, creditworthiness (c) developing a pipeline of state/city level investments by applying innovative and integrated solutions with a focus on the key subsectors of: (i) creative redevelopment of cities; (ii) cities as growth hubs; and (iii) 100 cities: water supply, sewerage management (WSS), and solid waste management (SWM), that could be funded through the UCF, and (d) establishing urban management partnerships for peer-to-peer learning with a view to improving capacity of institutions. The TA will enable enhanced climate action and financing, disaster risk management, and increased private sector participation and investment across the subsectors.

The TA aims to (i) develop integrated urban and regional planning solutions that boost economic, environmental, cultural, and social benefits in India's urban areas for creative redevelopment of cities and cities as growth hubs, promoting planned and sustainable urbanization; (ii) identify and implement financial innovations and mechanisms to improve operational efficiency, financial sustainability, and to facilitate market-based financing in urban infrastructure through the preparation of bankable transactions; and identify pipeline investments for the UCF and ADB financing for urban revitalization / regeneration and economic rejuvenation of identified congested areas of the cities including central business districts and old commercial areas using transit-oriented development (TOD) based growth strategy, mobility solutions, affordable housing, tourism development that support low-carbon initiatives and nature-based solutions; and (iii) strengthen the capacity of institutions, government officials, and stakeholders, in the urban planning, municipal finance, financial management, infrastructure including WSS, SWM and urban roads and public realm related subsector, and facilitate knowledge sharing and twinning arrangements to adopt best practices from the region. The TA will also integrate climate resilience and low-carbon development as cross-cutting priorities. It will support the identification and design of urban infrastructure projects that contribute to climate adaptation and mitigation, including nature-based solutions, resilient infrastructure, and low-emission urban mobility systems.

 

Investment Description
Here you can find a list of individual development financial institutions that finance the project.

Contact Information
This section aims to support the local communities and local CSO to get to know which stakeholders are involved in a project with their roles and responsibilities. If available, there may be a complaint office for the respective bank which operates independently to receive and determine violations in policy and practice. Independent Accountability Mechanisms receive and respond to complaints. Most Independent Accountability Mechanisms offer two functions for addressing complaints: dispute resolution and compliance review.
Responsible ADB Officer: Naik Singru, Ramola
Responsible ADB Department: Sectors Department 2
Responsible ADB Division: Water and Urban Development Sector Office (SD2-WUD)
Executing Agencies: Ministry of Housing and Urban Affairs
 

ACCESS TO INFORMATION

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ACCOUNTABILITY MECHANISM OF ADB

The Accountability Mechanism is an independent complaint mechanism and fact-finding body for people who believe they are likely to be, or have been, adversely affected by an Asian Development Bank-financed project. If you submit a complaint to the Accountability Mechanism, they may investigate to assess whether the Asian Development Bank is following its own policies and procedures for preventing harm to people or the environment. You can learn more about the Accountability Mechanism and how to file a complaint at: http://www.adb.org/site/accountability-mechanism/main.

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How it works