Himachal Pradesh Public Works and Urban Development Minister Vikramaditya Singh attended a meeting in New Delhi chaired by Union Housing and Urban Affairs Minister Manohar Lal Khattar, where detailed discussions were held on the Urban Challenge Fund.
The Minister stated that the state has proposed projects worth around ₹5,400 crore under the fund to strengthen infrastructure and create dynamic economic hubs in urban areas. He urged the Centre to allocate ₹1,350 crore as its share, citing the limited financial capacity and small size of urban local bodies in the state.
Singh highlighted that private sector participation in redevelopment projects remains low due to the difficult terrain and limited commercial viability. He called for special relaxations for hill and special category states like Himachal Pradesh, including easing population criteria and revising funding norms. He also requested reducing the requirement of raising 50 percent of project costs through bonds, loans, or public-private partnerships, and instead increasing central assistance or viability gap funding.
He further sought support from the Central Government in mobilizing resources, improving access to institutional finance, and encouraging private investment through policy support.
Emphasizing the importance of the Urban Challenge Fund, Singh noted that about 90 percent of Himachal Pradesh is mountainous and nearly 67 percent is forest-covered, leaving limited space for development. He added that fragile ecology and rising tourist numbers are putting pressure on existing infrastructure.
The proposed projects include decongestion and redevelopment of urban cores, development of peripheral central business districts, smart parking, skywalks, and heritage façade improvements. Plans also feature hill-specific mobility solutions such as hydraulic parking systems, lifts, and escalators, along with redevelopment of traditional markets and underground utility systems to improve services and urban aesthetics.
Additionally, the state has proposed an integrated wellness eco-tourism centre with a skywalk, cluster-based solid waste management systems, and planned townships aimed at attracting investment, generating employment, and easing pressure on existing towns. Integrated Command and Control Centres are also planned to enhance governance, disaster response, and service delivery.
The Centre has asked the state to prioritize and submit projects worth ₹1,100–1,200 crore initially, with 25 percent funding to be provided as central assistance, while the remaining amount will need to be arranged by the state through PPP models or institutional loans.
Nurturing Creativity – Keekli Charitable Trust, Shimla
