The Ministry of Housing and Urban Affairs (MoHUA) has approved six urban infrastructure projects worth ₹2,719.80 crore for Ahmedabad under the Urban Challenge Fund. The projects focus on upgrading the city’s ageing sewerage network, introducing an intelligent water management system, setting up an integrated sludge management facility and improving public transport through smart mobility solutions.
The investment is expected to strengthen essential civic infrastructure, improve service delivery and support more efficient management of water, sanitation and public transport across the city.
Where will the ₹2,719 crore be spent?
The approved projects include:
- ₹852.93 crore for rehabilitation of the main sewerage network in West Ahmedabad
- ₹551.35 crore for rehabilitation of the main sewerage network in East Ahmedabad
- ₹290.24 crore for upgrading ageing sewerage networks across the city
- ₹215 crore for an Intelligent Water Management System
- ₹479.25 crore for a 125 TPD Integrated Sludge Management Facility
- ₹331.03 crore for an Integrated Transit Management System (ITMS) and Automated Fare Collection System (AFCS)
How will the projects improve civic infrastructure?
Upgrading Ahmedabad’s sewerage network is expected to reduce sewer overflows and leakages. The Intelligent Water Management System will support real-time digital monitoring and distribution of water resources. The integrated sludge management facility will process sewage sludge to generate biogas and green energy, supporting more sustainable waste management practices.
The ITMS and AFCS projects will integrate AMTS, BRTS and Ahmedabad Metro services through a Common Mobility Card and a single journey application. Commuters will also receive real-time passenger information, while the system is expected to include AI-enabled route planning and enhanced in-bus surveillance.
How is the project being funded?
Under the Urban Challenge Fund, 25% of the project cost will be funded by the Central Government, 25% by the Gujarat Government, while the remaining 50% will be mobilised through municipal bonds, loans or public-private partnerships (PPP).
Accordingly, Ahmedabad Municipal Corporation (AMC) will receive ₹679.95 crore each from the Centre and the State Government. The remaining share will be financed by the civic body through loans and other approved financing mechanisms.
About the Urban Challenge Fund
The Urban Challenge Fund is a Ministry of Housing and Urban Affairs initiative designed to support large-scale urban infrastructure projects through a combination of government assistance and market-based financing. The scheme provides ₹1 lakh crore in central assistance over five years for projects related to urban redevelopment, growth hubs, and water and sanitation. Gujarat has been allocated ₹6,475 crore in central assistance under the programme, enabling urban projects worth around ₹25,900 crore across the state.
