The Government has established the Urban Infrastructure Development Fund (UIDF) with the objective of improving urban infrastructure in Tier 2 and Tier 3 cities. The fund utilizes the priority sector lending shortfall, enabling a more efficient allocation of resources to urban development projects. This initiative aims to support various urban infrastructure projects that are crucial for improving living standards and fostering urban growth.
Objectives of UIDF
The UIDF is designed to:
- Support State Governments and Union Territories (UTs): Assist in urban infrastructure development through the work of Public/State Agencies, Municipal Corporations, and Urban Local Bodies.
- Provide Financial Stability: Offer a stable and predictable source of funding for urban projects, ensuring continuous development in cities.
- Focus on Key Services: Fund essential urban services such as:
- Sewerage and Solid Waste Management
- Water Supply and Sanitation
- Construction and Improvement of Drains/Storm Water Drains
Management of UIDF
The National Housing Bank (NHB) is responsible for managing the fund, ensuring its effective and efficient use in accordance with the outlined objectives. The NHB acts as a key facilitator in channeling resources and overseeing the fund’s proper allocation.
Multiple-Choice Questions (MCQs):
- What is the primary purpose of the Urban Infrastructure Development Fund (UIDF)?
a) To provide funds for private sector development
b) To support urban infrastructure development in Tier 2 and Tier 3 cities
c) To promote industrial growth in rural areas
d) To finance agricultural infrastructure projects
Answer: b) To support urban infrastructure development in Tier 2 and Tier 3 cities - Which of the following urban services will be funded through UIDF?
a) Education and Healthcare
b) Sewerage and Solid Waste Management
c) Transportation and Highways
d) Retail and Entertainment Infrastructure
Answer: b) Sewerage and Solid Waste Management - Which organization manages the Urban Infrastructure Development Fund (UIDF)?
a) Reserve Bank of India
b) National Housing Bank
c) Ministry of Finance
d) State Government Authorities
Answer: b) National Housing Bank - Which cities are the primary focus for the UIDF?
a) Tier 1 cities
b) Rural areas
c) Tier 2 and Tier 3 cities
d) Capital cities
Answer: c) Tier 2 and Tier 3 cities - What does UIDF aim to supplement?
a) Private sector investments in urban projects
b) State Government’s efforts in urban infrastructure development
c) National initiatives in rural development
d) International funding for infrastructure projects
Answer: b) State Government’s efforts in urban infrastructure development