Note4Students
From UPSC perspective, the following things are important :
Prelims level: Urban Infrastructure Development Fund (UIDF)
Why in the News?
The Urban Infrastructure Development Fund (UIDF) has been established to support the development of urban infrastructure in Tier-2 and Tier-3 cities.
About Urban Infrastructure Development Fund (UIDF):
| Details | ||
| What is it? | • Established (budget speech for Financial Year 2023-24) to utilize priority sector lending shortfall for financing urban infrastructure projects. • Managed by the National Housing Bank (NHB). • Initial Corpus: ₹10,000 crore. • Modeled after the Rural Infrastructure Development Fund (RIDF), which supports rural infrastructure projects. • Focus on developing Tier-2 and Tier-3 cities in India.
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| Aims and Objectives | • Support Urban Infrastructure: Provides funding for essential urban services such as water supply, sanitation, sewerage, and waste management. • Sewerage, water supply, sanitation, drains, and solid waste management. • Prioritizes projects with significant improvements in urban services. • Funds are allocated to Municipal Corporations and Urban Local Bodies (ULBs) for infrastructure development. |
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| Structural Mandate and Implementation | • Coverage: Supports 459 Tier-2 cities and 580 Tier-3 cities in India. • Loan Terms: Loans offered at Bank Rate minus 1.5% interest rate. • Repayment Terms: Loan repayable in five equal annual instalments over seven years. • Moratorium Period: Two years before repayment starts. • Quarterly Interest Payments: Regular payments required during the loan period. |
PYQ:[2017] With reference to ‘National Investment and Infrastructure Fund’, which of the following statements is/are correct?
Select the correct answer using the code given below: (a) 1 only |
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