GCC Finalises Project Pipeline for 1 Lakh Crore Urban Challenge Fund

The Greater Chennai Corporation (GCC) is finalising a tentative project list for the ₹1 lakh-crore Urban Challenge Fund (UCF) and evaluating multiple financing avenues, Commissioner G.S. Sameeran announced. The civic body presented its project pipeline during a meeting with national financial institutions, banks, merchant bankers, and multilateral organisations on August 5, covering planned developments in localities including Kodungaiyur, Srinivasapuram, and Velachery.

The GCC is weighing options including municipal bonds, direct commercial loans, and multilateral funding to raise the required capital. According to the civic body, the final borrowing mechanism will be chosen based on borrowing costs, ease of borrowing, interest rates, tenure, moratorium periods, and value-added services offered by participating financial institutions.

Spanning from financial year 2025-26 to 2030-31, with a potential three-year extension, the UCF mission focuses on three primary themes: 'Cities as Growth Hubs' for economic expansion, 'Creative Redevelopment of Cities' for urban renewal, and 'Water and Sanitation' for upgrading public health infrastructure.

Of the total outlay, ₹90,000 crore is dedicated to capital projects. A further ₹5,000 crore is allocated to the Project Preparation and Capacity Building Fund to finance detailed project reports and strengthen institutional capabilities. The remaining ₹5,000 crore is set aside for the Credit Repayment Guarantee Sub-Scheme to serve as a safety net for debt servicing.

Projects tentatively included in the pipeline feature an Integrated Solid Waste Processing Facility in Kodungaiyur, blue-green infrastructure projects, and a cable-stayed bridge in Srinivasapuram. Commissioner Sameeran stated that several interventions will be executed through Public-Private Partnerships with built-in revenue generation mechanisms to ensure financial viability. Institutions were also urged to partner with the GCC through Corporate Social Responsibility programmes.

Addressing the civic body's financial standing, GCC Deputy Commissioner (Revenue and Finance) Chitra Vijayan stated that two municipal bonds were recently floated, noting that rating agency India Ratings reaffirmed an AA+ rating for the GCC's municipal bonds.

Meanwhile, the GCC stated that several civic tenders, including the tender for the Velachery flyover project, are currently under process and will be finalised shortly.