GCC Plans Rs 4,000-Crore Capital Outlay Under Urban Challenge Fund

The Greater Chennai Corporation has planned capital expenditure proposals worth Rs 4,000 crore under the Urban Challenge Fund ahead of the State government's Municipal Administration and Water Supply budget presentation on August 24. The planned developments include pedestrian-priority street initiatives and civic works across clusters such as T. Nagar-Teynampet.

According to a civic body document, projects under the Urban Challenge Fund will follow a financing model comprising 25 percent Central assistance, 25 percent State or Urban Local Body share, and 50 percent market-based financing or Public-Private Partnerships. GCC Commissioner G.S. Sameeran earlier noted that the civic body is considering rolling out additional municipal bonds and examining the feasibility of commercial loans.

Phase I encompasses four projects valued at Rs 2,450 crore, with a commercial loan of Rs 1,590 crore to be mobilised during the 2026-27 financial year. This phase includes a Rs 1,313.57-crore integrated waste processing facility at Kodungaiyur and a Rs 140-crore compost plant at Perungudi.

Phase I also earmarks Rs 393 crore for pedestrian-priority streets and asset development across four key clusters: Tondiarpet-Washermenpet-Royapuram, T. Nagar-Teynampet, Royapettah-Triplicane, and Adyar-Besant Nagar-Thiruvanmiyur. Additionally, Rs 210 crore has been allocated for blue-green infrastructure across three beaches in Besant Nagar, Thiruvanmiyur, and Palavakkam, along with nine lakes in Perungudi, Porur, Retteri, Adambakkam, Velachery, Kallukuttai, Subramanya, Ramanthangal, and Sathangadu.

Phase II carries an estimated outlay of Rs 1,550 crore, for which detailed project reports are currently under preparation. A loan of Rs 775 crore will be mobilised across 2027-28 and 2028-29 to fund these works. Key proposals include a 2.3-km coastal cable-stayed bridge between Srinivasapuram and Urur Kuppam costing Rs 600 crore, infrastructure upgrades worth Rs 450 crore in Ambattur and Guindy industrial estates, and Rs 400 crore for neighbourhood development across six locations.

The second phase also covers a Rs 100-crore urban data centre, self-financing PPP initiatives for parking management across 25 locations, and the redevelopment of four bus terminals and four commercial complexes.