Consider the following statements regarding Urban Infrastructure Development Fund UIDF 1 UIDF will f...........

Indian Economic System(UPPCS) Infrastructure- Housing, Transport, Energy

Download Solution PDF

Consider the following statements regarding Urban Infrastructure Development Fund (UIDF):

1. UIDF will focus on metro cities with a population of a million or more.

2. Eligible loan amount under the scheme would be based on the size and location of the project.

3. Heritage conservation is one of the eligible projects under the scheme.

How many of the statements given above are correct?

Only one

Only two

All three

None

छोटे Courses बड़े Results

Master Infrastructure- Housing, Transport, Energy

Prepare through Micro-courses

Try Now

Explanation:

Recent context : National Housing Bank (NHB) has operationalized the 10,000-crore Urban Infrastructure Development Fund (UIDF) announced in this year’s Budget for creation of urban infrastructure in tier-2 and tier-3 cities.
o Urban Infrastructure Development Fund (UID) will be funded through Priority Sector Lending Shortfall and to be used by Public Agencies to create urban infrastructure in Tier 2 & Tier 3 cities.
• The initial corpus for this fund — managed by NHB— is 10,000 crore.
UIDF has been launched to supplement efforts of the State governments by providing stable and predictable source of finance for creation of urban infrastructure in tier-2 and tier-3 cities.
• As many as 459 tier-2 cities with population of 50,000 to less than a lakh and 580 tier-3 cities with population of one lakh to less than a million as per 2011 census are being covered under UDIF as of now.
Thus, UDIF would focus on mid-sized cities with the potential to develop them into regional economic hubs, while keeping the metropolitan and metro cities outside its scope.Hence statement 1 is not correct.
Interest rate on UIDF loans has been kept at bank rate minus 1.5 percent i.e., 5.25 percent at present.
The loan (principal) will be repayable in five equal annual instalments within seven years from the date of withdrawal, including a moratorium period of two years while interest will be payable on quarterly basis.
The eligible loan amount for financing under UDIF will be based on the size of project and geographical location of the project.Hence statement 2 is correct.
Eligible Projects o Water Supply & Sanitation o Solid Waste Management o Construction of roads (excluding maintenance works), Over bridges, grade separators, underpasses o Comprehensive Area Development Projects o Local Area Plan for de-congestion o Heritage Conservation o Town Planning Schemes for greenfield development o Parks with open Gym not involving major construction work, etc.Hence statement 3 is correct.
Finance Department of States/ UTs have been designated as the nodal department for implementation of the fund while NHB is operationalising the fund through their regional offices spread across the country