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Urban infrastructure development fund to be set up: General Budget

Union Finance Minister Nirmala Sitharaman said it was meant to encourage efficient use of land resources, adequate resources for urban infrastructure, transit-oriented development, enhanced availability and affordability of urban land, and opportunities for all.

Urban infrastructure development fund to be set up: General Budget

Urban infrastructure development fund to be set up: General Budget_ANI

For judicious utilisation of resources at their disposal, states and cities will be encouraged to undertake urban planning reforms and actions to transform cities into ‘sustainable cities of tomorrow’, according to the General Budget.

Elaborating on the plan while presenting the Union Budget, Union Finance Minister Nirmala Sitharaman said it was meant to encourage 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 mentioned that an Urban Infrastructure Development Fund (UIDF) will be established through 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.

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The minister said the cities will be incentivised to improve their creditworthiness for municipal bonds. This will be done through property tax governance reforms and ring-fencing user charges on urban infrastructure.

All cities and towns will be enabled to achieve 100 per cent mechanical desludging of septic tanks and sewers to transition from manhole to machine-hole mode. The enhanced focus will be provided for the scientific management of dry and wet waste.

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