Bhopal (Madhya Pradesh): Five urban local bodies (ULBs) in Madhya Pradesh, including the Bhopal Municipal Corporation (BMC), failed to secure funding for urban development projects worth at least Rs 4,467 crore under the first phase of the Centre's Urban Challenge Fund (UCF) after their proposals were either incomplete or found ineligible under the scheme, Urban Administration, Development and Housing Department (UADD) officials said.
According to UADD, the Ministry of Housing and Urban Affairs (MoHUA) has granted in-principle approval to urban development projects worth Rs 2,753.10 crore in Madhya Pradesh.
Indore Municipal Corporation (IMC) prepared the proposals but made changes nearly seven times before they were finally accepted by MoHUA. However, proposals from Bhopal, Chhindwara, Katni, Gwalior and Satna did not receive approval in the first round.
Bhopal Municipal Corporation's (BMC) Rs 2,300-crore slum rehabilitation project, one of the state's largest redevelopment plans, failed to qualify for funding.
Chhindwara and Katni missed out due to inadequate preparation, while Gwalior's proposals were delayed because the detailed project report (DPR) had not been completed. Officials said these cities would have an opportunity to submit revised proposals in the next phase.
Projects rejected
According to officials, Chhindwara's Rs 67-crore water supply proposal lacked clarity on financial arrangements, particularly loan details. Katni's proposed development works worth around Rs 600 crore could not be processed as preparatory work remained incomplete.
Water and sewerage projects get major share
Most of the approved projects in the first phase focus on strengthening water supply and sewerage infrastructure. The Centre approved Rs 907 crore for Indore's water supply and distribution system and Rs 306 crore for sewer network upgrades and treatment plants. Jabalpur received approval for Rs 64 crore for water supply expansion and Rs 250 crore for sewerage works, while Rewa secured Rs 99 crore for water supply improvements. The largest single approval, Rs 1,124 crore, was sanctioned for the integrated development and corridor construction of 11 major temple complexes in Ujjain.
Rs 20,000-crore urban development plan
Under the Urban Challenge Fund, Madhya Pradesh plans to implement projects worth Rs 20,000 crore over five years. The Centre will contribute 25% of the project cost, while ULBs must arrange 50% through municipal bonds, loans and other financial instruments, with the remaining share to be mobilised through state support and private investment. The Centre has created a Rs 1 lakh crore corpus under the Urban Challenge Fund to support urban infrastructure across the country.
Official statement
UADD deputy director Akshat Bundela told Free Press that the Centre rejected proposals based on the Public-Private Partnership (PPP) model, linked to schemes already funded by the Central Government, or related to routine civic amenities such as water supply, sewerage and roads.
