UPSC Prelims Practice Questions — Cabinet approves Rs. One Lakh Crore Urban Challenge Fund to Drive Market-Led Urban Transformation
Q1. The creation of the Rs. 1 lakh crore Urban Challenge Fund was first announced in the Union Budget of which financial year?
- A. 2022-23
- B. 2023-24
- C. 2024-25
- D. 2025-26
Q2. Consider the following statements about the Urban Challenge Fund (UCF):
1. Like the earlier Smart Cities Mission, the UCF selects projects through a competitive challenge mode.
2. Unlike grant-based urban missions, the UCF caps Central Assistance at 25% of the project cost.
3. The UCF is implemented by NITI Aayog, whereas AMRUT was implemented by the Ministry of Housing and Urban Affairs.
Which of the statements given above is/are correct?
- Like the earlier Smart Cities Mission, the UCF selects projects through a competitive challenge mode.
- Unlike grant-based urban missions, the UCF caps Central Assistance at 25% of the project cost.
- The UCF is implemented by NITI Aayog, whereas AMRUT was implemented by the Ministry of Housing and Urban Affairs.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q3. Under the Urban Challenge Fund's Credit Repayment Guarantee Scheme, the Central guarantee for a first-time loan is capped at Rs. 7 crore or what percentage of the loan amount, whichever is lower?
Q4. The Urban Challenge Fund was set up to implement certain thematic proposals. Consider the following:
1. Cities as Growth Hubs
2. Creative Redevelopment of Cities
3. Water and Sanitation
4. Affordable Urban Housing
Which of the above is/are correctly identified as a thematic window of the Urban Challenge Fund?
- Cities as Growth Hubs
- Creative Redevelopment of Cities
- Water and Sanitation
- Affordable Urban Housing
- A. 1, 2 and 3
- B. 1, 2 and 4
- C. 2, 3 and 4
- D. 1, 3 and 4
Q5. Consider the following statements about the origin of the Urban Challenge Fund:
1. The three themes it implements were originally announced in the July (2024-25) Union Budget.
2. The Rs. 1 lakh crore Fund to implement these themes was set up in the Union Budget 2025-26.
3. The entire Rs. 1 lakh crore was allocated in the 2025-26 Budget itself.
Which of the statements given above is/are correct?
- The three themes it implements were originally announced in the July (2024-25) Union Budget.
- The Rs. 1 lakh crore Fund to implement these themes was set up in the Union Budget 2025-26.
- The entire Rs. 1 lakh crore was allocated in the 2025-26 Budget itself.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q6. The Jawaharlal Nehru National Urban Renewal Mission (JNNURM), launched in 2005, was implemented over how many years before AMRUT and the Smart Cities Mission were launched in 2015?
- A. Seven years
- B. Nine years
- C. Ten years
- D. Twelve years
Q7. Consider the following:
1. Jawaharlal Nehru National Urban Renewal Mission (JNNURM)
2. Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
3. Smart Cities Mission
4. Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
Which of the above is/are correctly identified as an urban development mission/scheme of the Government of India?
- Jawaharlal Nehru National Urban Renewal Mission (JNNURM)
- Atal Mission for Rejuvenation and Urban Transformation (AMRUT)
- Smart Cities Mission
- Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS)
- A. 1, 2 and 3
- B. 1, 2 and 4
- C. 2, 3 and 4
- D. 1, 3 and 4
Q8. For how many financial years is the core implementation period of the Urban Challenge Fund (before any extension) scheduled?
- A. Five years
- B. Six years
- C. Seven years
- D. Eight years
Q9. Consider the following statements about the approval of the Urban Challenge Fund:
1. The Fund was announced in the Union Budget, but its detailed scheme architecture was approved separately by the Union Cabinet.
2. The Cabinet approval retained the total Central Assistance at Rs. 1 lakh crore.
3. The Cabinet raised the Central Assistance ceiling from 25% to 50% of project cost.
Which of the statements given above is/are correct?
- The Fund was announced in the Union Budget, but its detailed scheme architecture was approved separately by the Union Cabinet.
- The Cabinet approval retained the total Central Assistance at Rs. 1 lakh crore.
- The Cabinet raised the Central Assistance ceiling from 25% to 50% of project cost.
- A. 1 only
- B. 1 and 2 only
- C. 2 and 3 only
- D. 1, 2 and 3
Q10. Under SEBI's Issue and Listing of Municipal Debt Securities Regulations, 2015, a municipality seeking to issue municipal bonds must not have had a negative net worth in any of how many immediately preceding financial years?
- A. Two
- B. Three
- C. Five
- D. Seven
Q11. Consider the following:
1. The Smart Cities Mission had a central share of Rs. 50,000 crore within its overall Rs. 1 lakh crore outlay.
2. AMRUT was launched in 2015 covering 500 cities.
3. The Smart Cities Mission used a challenge-based city selection, similar to the Urban Challenge Fund.
4. The Urban Challenge Fund provides 75% of the project cost as Central Assistance.
Which of the above is/are correctly identified?
- The Smart Cities Mission had a central share of Rs. 50,000 crore within its overall Rs. 1 lakh crore outlay.
- AMRUT was launched in 2015 covering 500 cities.
- The Smart Cities Mission used a challenge-based city selection, similar to the Urban Challenge Fund.
- The Urban Challenge Fund provides 75% of the project cost as Central Assistance.
- A. 1, 2 and 3
- B. 1, 2 and 4
- C. 2, 3 and 4
- D. 1, 3 and 4