Consider the following statements regarding the Urban Challenge Fund (UCF): 1. Under the Fund, the Central Assistance is limited to 50% of project cost. 2. The Credit Repayment Guarantee Sub-Scheme (CRGSS) provides guarantee coverage for term loan assistance to urban local bodies for their projects taken up under UCF. Which of the statements given above is/are correct? |ForumIAS

Q. Consider the following statements regarding the Urban Challenge Fund (UCF):
1.Under the Fund, the Central Assistance is limited to 50% of project cost.
2.The Credit Repayment Guarantee Sub-Scheme (CRGSS) provides guarantee coverage for term loan assistance to urban local bodies for their projects taken up under UCF.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: B

Notes:

Explanation: 2 only

Statement 1 is incorrect: Government of India has launched the operational guidelines for the Rs 1 lakh crore Urban Challenge Fund (UCF) under which the Centre’s contribution will be capped at 25 per cent of the total project cost, while states and urban local bodies will share a part of the remaining burden.

Statement 2 is correct: The Credit Repayment Guarantee Sub-Scheme (CRGSS) is also launched with a Rs 5,000-crore corpus which will provide guarantee coverage for term loan assistance to urban local bodies for their projects taken up under UCF.

Source: PIB

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS