+
Centre establishes Rs 100 billion Urban Infra Fund
ECONOMY & POLICY

Centre establishes Rs 100 billion Urban Infra Fund

The Urban Infrastructure Development Fund (UIDF) has been created by the Centre, with a total allocation of Rs 100 billion from the corpus of priority sector lending shortfall. The National Housing Bank (NHB) will be responsible for managing the fund.

The fund has been established by infusing Rs 100 billion under the National Housing Bank, and guidelines are being developed by the NHB and the Ministry of Housing and Urban Affairs (MoHU) to identify infrastructure projects in tier II and tier III cities.

The announcement of the fund was made in this year's budget by Finance Minister Nirmala Sitharaman. In her speech, the finance minister stated, "An Urban Infrastructure Development Fund (UIDF) will be established, similar to the Rural Infrastructure Development Fund (RIDF), through the use of priority sector lending shortfalls."

The RIDF, which was created by the government in 1995-96 with an initial allocation of Rs 2,000 crore, served as a model for UIDF. In the 2022-23 fiscal year, the government allocated Rs 400 billion for RIDF.

In April, the Minister of State for Housing & Urban Affairs, Kaushal Kishore, stated in a written reply to the Lok Sabha that states would be encouraged to utilise resources from the grants of the 15th Finance Commission and existing schemes, along with implementing appropriate user charges, while accessing the UIDF. The minister further mentioned that the UIDF would be operationalized in a manner similar to the existing Rural Infrastructure Development Fund.

During the announcement of the Union Budget 2023-24, Sitharaman highlighted that cities would be incentivized to enhance their creditworthiness for municipal bonds. This would be achieved through governance reforms in property tax and protecting user charges for urban infrastructure.

Also read:
Amazon to Invest $15 Billion in India by 2030
L&T, DRDO ink deal for Scorpene submarines' AIP modules


The Urban Infrastructure Development Fund (UIDF) has been created by the Centre, with a total allocation of Rs 100 billion from the corpus of priority sector lending shortfall. The National Housing Bank (NHB) will be responsible for managing the fund. The fund has been established by infusing Rs 100 billion under the National Housing Bank, and guidelines are being developed by the NHB and the Ministry of Housing and Urban Affairs (MoHU) to identify infrastructure projects in tier II and tier III cities. The announcement of the fund was made in this year's budget by Finance Minister Nirmala Sitharaman. In her speech, the finance minister stated, An Urban Infrastructure Development Fund (UIDF) will be established, similar to the Rural Infrastructure Development Fund (RIDF), through the use of priority sector lending shortfalls. The RIDF, which was created by the government in 1995-96 with an initial allocation of Rs 2,000 crore, served as a model for UIDF. In the 2022-23 fiscal year, the government allocated Rs 400 billion for RIDF. In April, the Minister of State for Housing & Urban Affairs, Kaushal Kishore, stated in a written reply to the Lok Sabha that states would be encouraged to utilise resources from the grants of the 15th Finance Commission and existing schemes, along with implementing appropriate user charges, while accessing the UIDF. The minister further mentioned that the UIDF would be operationalized in a manner similar to the existing Rural Infrastructure Development Fund. During the announcement of the Union Budget 2023-24, Sitharaman highlighted that cities would be incentivized to enhance their creditworthiness for municipal bonds. This would be achieved through governance reforms in property tax and protecting user charges for urban infrastructure. Also read: Amazon to Invest $15 Billion in India by 2030 L&T, DRDO ink deal for Scorpene submarines' AIP modules

Next Story
Building Material

UltraTech’s Limestone Mine Gets India’s First-Ever 7-Star Rating

UltraTech Cement, India’s largest producer of cement and Ready-Mix Concrete (RMC), has received top honours for sustainable mining practices. Thirteen of the company’s limestone mines were awarded star ratings by the Indian Bureau of Mines (IBM), Ministry of Mines, for FY 2023–24 during a ceremony held in Jaipur, Rajasthan. Among these, the Naokari Limestone Mine—part of UltraTech’s Awarpur Cement Works in Chandrapur, Maharashtra—was awarded India’s first-ever 7-star rating for a limestone mine, in recognition of exceptional performance in ‘Green Mining’. The remain..

Next Story
Infrastructure Urban

Sieger Parking Enters Mumbai Market, Expands West India Presence

Sieger Parking, a Coimbatore-headquartered specialist in automated and multi-level car parking systems, has announced its entry into Western India with the launch of a regional office in Mumbai. This move marks a key milestone in the company’s pan-India growth strategy and its commitment to delivering technology-driven, space-efficient parking solutions across urban India. The Mumbai office will serve as the regional headquarters for Maharashtra and neighbouring states, supporting end-to-end operations with on-ground sales, project management, and service teams. The aim is to fast-track..

Next Story
Resources

IGBC Green Kochi Conclave 2025 Champions Culture and Climate Action

The Indian Green Building Council (IGBC), part of CII, hosted the Green Kochi Conclave 2025 on 4 July at Hotel Holiday Inn, Kochi, under the theme “Tharavadu to Tomorrow: Weaving Kerala’s Heritage into a Sustainable Built Environment.” The event brought together policymakers, architects, developers, and thought leaders to discuss Kerala’s progress in blending cultural heritage with sustainable design.  Kerala is emerging as a frontrunner in climate-resilient development, thanks to passive design strategies, rainwater harvesting, cool roof initiatives, and the widespread adopt..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?