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 15th 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.