Urban Infrastructure Development Fund:
The Minister of State in the Ministry of Housing and Urban Affairs informed in Lok Sabha that the government has set up the Urban Infrastructure Development Fund (UIDF) through use of priority sector lending shortfall for creating urban infrastructure in Tier 2 and Tier 3 cities.
- It was established through the use of priority sector lending shortfall.
- It will be used by public agencies to create urban infrastructure in tier-2 and tier-3 cities.
- It aims to supplement the efforts of the State Governments / UTs for urban infrastructure development works implemented through Public/ State Agencies, Municipal Corporations and Urban Local Bodies, by providing a stable and predictable source of financing for providing basic services like Sewerage and Solid Waste Management, Water Supply and Sanitation, construction and improvement of drains/ storm water drains, etc.
- It is managed by the National Housing Bank.
- The initial corpus for this Fund is ₹10,000 crore.
- It is established on the lines of the Rural Infrastructure Development Fund (RIDF).
- States will be encouraged to leverage resources from the grants of the 15th Finance Commission, as well as existing schemes, to adopt appropriate user charges while accessing the UIDF.
- It currently covers 459 tier-2 cities and 580 tier-3 cities.
