The initial batch of loans to support ongoing projects in tier-2 and tier-3 cities, as part of the Urban Infrastructure Development Fund (UIDF) introduced in the FY24 Budget, is set to be distributed soon, as reported by the Union Housing and Urban Affairs Ministry. States are in the process of preparing proposals for new projects. UIDF offers affordable loans to 459 tier-2 cities and 580 tier-3 towns, aiding infrastructure development. The National Housing Bank (NHB) oversees the fund’s execution, allowing cities to apply for funding for ongoing projects initially and new projects in the near future. Projects encompass sewage treatment, sewerage networks, and more, and UIDF funding can be combined with other Ministry schemes.
Facts/Terms for UPSC Prelims
- Tier-2 and Tier-3 Cities: These refer to urban areas in a hierarchical classification system, with tier-1 cities being the largest and most developed, followed by tier-2 and tier-3 cities, which are smaller and less developed but still significant in terms of population and economic activity.
- National Housing Bank (NHB): NHB is a government-owned financial institution in India, primarily responsible for regulating and promoting housing finance and related activities.
- Detailed Project Reports (DPRs): These reports provide comprehensive details about a project, including its scope, objectives, costs, and implementation plan, aiding in decision-making and securing funding.
- Swachh Bharat Mission: This is a nationwide cleanliness and sanitation campaign in India, aiming to eliminate open defecation and improve waste management and sanitation infrastructure.
- AMRUT: The Atal Mission for Rejuvenation and Urban Transformation (AMRUT) is a government initiative in India focused on improving urban infrastructure and providing basic services to citizens in urban areas.