Setting up of UIDF

Setting up of UIDF

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April 5, 2023

The Urban Infrastructure Development Fund (UIDF) has been established as a result of the Union Budget 2023–24's announcement. The establishment of the UIDF has been operationalised by shortfall within the priority sector borrowing.

Agency - The National Housing Bank will manage it.

Use - It will be utilized by public agencies to make metropolitan foundation in Tier-II and III cities

1. Cities in Tier II are those with populations between 50,000 and 100,000

2. Level III urban communities are delegated those with a populace of 20,000 to 50,000

The Rural Infrastructure Development Fund, which is already in place, would serve as a model for the Fund's general operation.

• It encourages projects with lower carbon footprints and provides basic services.

• Mechanical de-sludging of septic tanks and sewers from manhole to machine-hole mode will be possible in all cities and towns.

• A greater emphasis will be placed on the scientific management of both wet and dry waste.

• Increasing the cities' creditworthiness for municipal bonds will be encouraged.

The Rural Infrastructure Development Fund was established between 1995 and 1996.

Agency - The National Bank for Agriculture and Rural Development (NABARD) is in charge of its upkeep.

• The goal is to provide loans to state governments and corporations owned by the state to help them finish ongoing projects involving rural infrastructure.

• Within seven years of the date of withdrawal, the loan must be repaid in equal annual installments, with a two-year grace period in between.

Source: The HINDU