India, Sept. 3 -- A Rs.300 crore prototype of the Rs.1 lakh crore Urban Challenge Fund (UCF) announced in the February Union Budget has been finalised for cities with populations of 100,000 (as per the 2011 Census) to demonstrate the potential of developing bankable projects, a government official said .

Bankable projects are planned to recover the investments, especially those made through non-grant investments. They are vital for improving municipal governance as they attract investment for urban infrastructure, reduce dependency on government funding, and enhance financial discipline among Urban Local Bodies.

Union housing and urban affairs (MoHUA) ministry additional secretary D Thara said that the pilot is a curtain-raiser under At...