Urban infrastructure development fund

Union Budget 2023-24 has announced the setting up of the Urban Infrastructure Development Fund (UIDF) through use of priority sector lending shortfall. Rs. 10,000 crore per annum will be made available for this purpose. The Fund will be managed by the National Housing Bank, and will be used by public agencies to create urban infrastructure in Tier 2 and Tier 3 cities on the basis of given guidelines. As per the Budget announcement, States will be encouraged to leverage resources from the grants of the 15 th Finance Commission, as well as existing schemes, to adopt appropriate user charges while accessing the UIDF. The Fund would be operationalised broadly along the lines of the existing Rural Infrastructure Development Fund. This information was given by the Minister of State for Housing & Urban Affairs, Shri Kaushal Kishore, in a written reply in the Lok Sabha today. *** RJ

Kudos to the Hon’ble Finance Minister for providing a clear roadmap to navigate the Indian economy towards growth trajectory despite global slowdown, challenges posed by the pandemic and Russia-Ukraine war. India’s G-20 presidency coupled with growth in world ranking is a testimony that the Indian economy is on the right track which has been globally recognized as a bright spot in world economy. Budget 2023 lays down the blueprint for prosperous and inclusive India@100 which recognizes Infrastructure sector as a key contributor to achieve the vision of sustainable growth in Amrit Kaal. Enhanced capex outlay of INR10 lakh crores (representing 3.3% of GDP) including highest outlay for railways, further development of regional airports and transport infrastructure projects will boost last and first mile connectivity. Proposal to provide viability gap funding for battery storage, renewable energy evacuation, green credit programme are strong initiatives to support Green Growth. Further the PPP model continues to be an area of focus to promote coastal shipping as an energy efficient and economical mode of transport. The proposed Urban Infrastructure Development Fund will facilitate development of urban infrastructure thereby providing a better lifestyle to the population in Tier 2 and Tier 3 cities. In summary, the budget proposals give continuity of growth and seek to propel domestic consumption, employment with focus on training and skilling the youth for digital India. Key a...

Also Read | The minister said the fund would be established through the use of priority sector lending shortfall. “This will be managed by the National Housing Bank, and will be used by public agencies to create urban infrastructure in Tier-2 and Tier-3 cities. 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. We expect to make available Rs 10,000 crore per annum for this purpose,” she said. Also Read | Sitharaman also said states and cities would be encouraged to undertake reforms in urban planning and take steps to make cities more sustainable. “This means efficient use of land resources, adequate resources for urban infrastructure, transit-oriented development, enhanced availability and affordability of urban land, and opportunities for all,” she said. Among the reforms would be property tax governance reforms and ring-fencing user charges on urban infrastructure, she said. Cities would be given incentives to improve credit worthiness for municipal bonds, she added. Read | On the sanitation front, she said: “All cities and towns will be enabled for 100% mechanical desludging of septic tanks and sewers to transition from manhole to machine-hole mode. Enhanced focus will be provided for scientific management of dry and wet waste.” In keeping with the focus on sanitation, the Budget for the Union Housing and Urban Affairs Ministry included ...