NHB operationalises ₹10,000-crore Urban Infrastructure Development Fund
NHB operationalises ₹10,000-crore Urban Infrastructure Development Fund: National Housing Bank (NHB) has operationalized the Urban Infrastructure Development Fund (UIDF) with an initial corpus of Rs 10,000 crore.
Daily Current Affairs Quiz: July 2023
Finance Minister Nirmala Sitharaman in her 2023-24 Budget speech announced the setting up of the UIDF through the use of priority sector lending shortfall for the creation of urban infrastructure in Tier 2 and Tier 3 cities.
The interest rate on UIDF loans has been kept at Bank Rate minus 1.5%, i.e., 5.25% (at present). The loan (principal) will be repayable in 5 equal annual installments within 7 years from the date of withdrawal, including a moratorium period of two years while interest will be payable on quarterly basis.
Eligible projects:
- Focus will be on basic services like sewerage and solid waste management, water supply and sanitation, construction and improvement of drains/storm water drains, etc. and impact-oriented projects would be prioritised.
- The minimum size and maximum size of the project proposal shall be ₹5 crores (₹ 1 crore for northeast & hilly States) and ₹ 100 crore respectively.
- The fund shall not be utilised for any type of maintenance works or for administrative/establishment expenses.
- Further, housing, power and telecom, rolling stock like buses and trams, urban transport, health and education institutions would remain out of the purview of UIDF.