Centre Approves Rs 2,720 Crore for Six Major Urban Infrastructure Projects in Ahmedabad

New Delhi: The Union Ministry of Housing and Urban Affairs has approved six major urban infrastructure projects worth Rs 2,719.80 crore for Ahmedabad under the Urban Challenge Fund, a flagship initiative launched by Prime Minister Narendra Modi to promote sustainable and technology-driven urban development.

The approved projects include Rs 852.93 crore for rehabilitation of the main sewer network in West Ahmedabad, Rs 551.35 crore for rehabilitation of the main sewer network in East Ahmedabad, Rs 290.24 crore for upgrading the ageing sewer network across various parts of the city, Rs 215 crore for an Intelligent Water Management System, Rs 479.25 crore for a 125 TPD Integrated Sludge Management Facility, and Rs 331.03 crore for the Integrated Transit Management System (ITMS) and Automated Fare Collection System (AFCS).

According to the government, the sewer rehabilitation projects are expected to significantly reduce sewer overflows and leakages while improving the efficiency of Ahmedabad’s underground drainage infrastructure. The Intelligent Water Management System will enable real-time digital monitoring and smart management of the city’s sewer and stormwater network.

The Integrated Sludge Management Facility will process sewage sludge to produce biogas and green energy, supporting environmentally sustainable waste management and promoting a circular economy.

The transport-focused ITMS and AFCS projects aim to improve public transport services by introducing a common mobility card and a unified journey application for AMTS, BRTS and Metro services. The system will also offer real-time passenger information, artificial intelligence-based route planning and enhanced passenger safety through modern in-bus surveillance and improved incident management.

The government said the projects will strengthen Ahmedabad’s urban infrastructure and help transform the city into a cleaner, smarter, more resilient and future-ready metropolis with improved civic services for residents.

The approval is also expected to reinforce Gujarat Chief Minister Bhupendra Patel’s vision of citizen-centric, technology-based and sustainable urban development.

The Urban Challenge Fund, launched by the Ministry of Housing and Urban Affairs, aims to encourage cities to adopt market-based financing and balanced regional development. The Centre has earmarked Rs 1 lakh crore under the scheme over five years to support market-led urban transformation.

The scheme supports projects under three verticals: Creative Redevelopment of Cities, Cities as Growth Hubs, and Water and Sanitation.

Gujarat has been allocated Rs 6,475 crore under the Urban Challenge Fund, enabling urban local bodies across the state to undertake projects worth approximately Rs 25,900 crore.

For the six Ahmedabad projects, the funding will follow the scheme’s prescribed pattern, with 25% provided by the Central Government, 25% by the Gujarat Government, and the remaining 50% raised by the Ahmedabad Municipal Corporation through loans, municipal bonds or public-private partnerships (PPP).

Accordingly, the Ahmedabad Municipal Corporation will receive Rs 679.95 crore each from the Centre and the state government, while the balance funding will be mobilised through loans. DeshGujarat