GCC Finalises Tentative List 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) to drive major infrastructure developments across Chennai, including projects in Kodungaiyur, Srinivasapuram, and Velachery. GCC Commissioner G.S. Sameeran announced that the civic body is evaluating multiple financing avenues, such as municipal bonds, direct commercial loans, and multilateral funding, to meet its capital requirements.

The tentative list includes an Integrated Solid Waste Processing Facility in Kodungaiyur, blue-green infrastructure projects, and a cable-stayed bridge in Srinivasapuram. Additionally, the civic administration noted that tenders for several projects, including the Velachery flyover project, are currently under process and will be finalised shortly.

GCC presented its project pipeline during a meeting with national financial institutions, banks, merchant bankers, and multilateral organisations on August 5. Commissioner Sameeran sought feedback on market sentiment and stated that several projects would be executed under the Public-Private Partnership mode with built-in revenue generation mechanisms. Financial institutions were also urged to partner with the civic body through Corporate Social Responsibility programmes.

The UCF mission spans from financial year 2025-26 to 2030-31, with a potential three-year extension. It focuses on three core themes: 'Cities as Growth Hubs', 'Creative Redevelopment of Cities', and 'Water and Sanitation'. Out of the total outlay, ₹90,000 crore is allocated for capital projects, ₹5,000 crore for the Project Preparation and Capacity Building Fund, and ₹5,000 crore for the Credit Repayment Guarantee Sub-Scheme.

GCC Deputy Commissioner (Revenue and Finance) Chitra Vijayan noted that the civic body recently floated two municipal bonds, with India Ratings reaffirming an AA+ rating for GCC's municipal bonds. Officials stated that final borrowing choices will depend on interest rates, tenure, moratorium periods, and ease of borrowing.