- Union Finance Minister had announced in her Budget speech that the UIDF would be established through the use of priority sector lending shortfall.
- The Urban Infrastructure Development Fund (UIDF) is to be set up to ramp up infrastructure in tier-2 and tier-3 cities with an annual allocation of Rs 10,000 crore
- It will be established on the lines of the Rural Infrastructure Development Fund (RIDF)
- UIDF will be established through the use of priority sector lending shortfall.
- focus on the ongoing projects for the effective utilisation of funds;
- must provide for basic services; and
- encourage projects with lower carbon footprint.
While Tier 2 cities are those which have a population range of 50,000-1,00,000, Tier 3
The UIDF, which will be managed by the National Housing Bank.
|Rural Infrastructure Development Fund (RIDF)
● The RIDF was set up in 1995-96 for financing ongoing rural Infrastructure projects.
● The Fund is managed by the National Bank for Agriculture and Rural Development (NABARD).
● It provides loans to State Governments and State-owned corporations to enable them to complete ongoing rural infrastructure projects.
SOURCE: THE HINDU, THE ECONOMIC TIMES, PIB