What’s in the news?
- In the Union Budget 2023-24, the Government has announced that it will set up a Rs 10,000 crore per year Urban Infrastructure Development Fund (UIDF) for creating infrastructure in Tier-2 and Tier-3 cities.
- The fund would be established through the use of priority sector lending shortfall.
- 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.
- States and cities would be encouraged to undertake reforms in urban planning and take steps to make cities more sustainable. This means efficient use of land resources, adequate resources for urban infrastructure, transit-oriented development, enhanced availability and affordability of urban land, and opportunities for all.