Officials in Tamil Nadu say Madurai and Coimbatore are likely contenders to secure funding under the Union government’s newly announced Urban Infrastructure Fund, a challenge-based scheme aimed at improving civic infrastructure in tier-2 and tier-3 cities.
The Centre has earlier implemented programmes such as AMRUT for basic urban services and the Smart City Mission for targeted upgrades. The new fund is intended to push smaller cities to compete by preparing project proposals, with selected cities receiving central support for infrastructure improvements.
As per the guidelines released by the Union government, only cities with a population of over 10 lakh as of 2025 will be considered. The fund will support projects related to urban planning and design, transport facilities, and drinking water distribution, among other civic improvements. The annual outlay for the scheme has been indicated at ₹1 lakh crore.
For approved projects, the Centre will contribute 25% of the project cost. The urban local body must raise 50% through bond issuances, while the remaining 25% is to be arranged through the state government. The guidelines also call for setting up committees at the national and state levels to implement the scheme.
A Housing and Urban Development Department official said that, apart from Chennai, several Tamil Nadu corporations—Coimbatore, Madurai, Tiruchirappalli, Salem, Tiruppur and Tambaram—cross the 10 lakh population threshold. However, Coimbatore and Madurai are seen as having better prospects, with preparatory work expected after election-related procedures conclude.
