Executive Summary:
The Ministry of Finance addressed questions regarding the Urban Infrastructure Development Fund (UIDF). An initial corpus of ₹10,000 crore was allocated for FY 2023-24, with another ₹10,000 crore allocated for FY 2024-25. ₹7,000 crore from the FY 2024-25 allocation was reallocated to the Short-Term Cooperative Rural Credit Refinance Fund (STCRCRF) but will be replenished in FY 2025-26. As of July 31, 2025, 816 projects have been sanctioned, with 9 completed.
Key Points / Main Content:
* **Funding and Allocation:**
* Initial UIDF corpus: ₹10,000 crore for FY 2023-24.
* Additional allocation: ₹10,000 crore for FY 2024-25.
* Reallocation: ₹7,000 crore from FY 2024-25 UIDF to STCRCRF.
* Replenishment: Reallocated amount to be restored to UIDF in FY 2025-26.
* **Project Status (as of July 31, 2025):**
* Projects received from States/UTs: ₹13,138.17 crore.
* Loans sanctioned: ₹10,746.60 crore.
* Total projects sanctioned: 816.
* Projects completed: 9.
* **Challenges and Solutions:**
* Alternative documents permitted: Tender documents/work orders allowed in lieu of Detailed Project Reports (DPRs) for projects with UIDF loan upto ₹50 crore for State Sponsored Projects and ₹20 crore for Urban Local Body (ULB) Sponsored Projects.
* Project Sanctioning Committee (PSC) rationalized: To improve operational efficiency and proposal processing speed.
* Expanded project scope: Eligible projects now cover all urban infrastructure activities except Housing, Power/Telecom, and Urban Transport.
* Disbursement basis: Reimbursement, except for mobilization advance; phased disbursements linked to project completion.
* **State/UT-wise Project Details (FY 2024-25):**
* Details of projects received and loans sanctioned are provided in Annexure I.
* Total projects received: ₹8,243.75 crore.
* Total loans sanctioned: ₹6,708.52 crore.
Impact Analysis:
* **States/Union Territories:**
* *Impact:* Affected by the allocation, reallocation, and disbursement of funds for urban infrastructure projects.
* *Action Required:* Submit project proposals, comply with revised documentation requirements, and manage project implementation within the UIDF guidelines.
* **National Housing Bank (NHB):**
* *Impact:* Responsible for project sanctioning and monitoring the progress of UIDF projects.
* *Action Required:* Implement the rationalized PSC processes, broaden the scope of eligible projects, and oversee phased disbursements.
* **Reserve Bank of India (RBI):**
* *Impact:* Involved in the reallocation and replenishment of funds to and from the UIDF.
* *Action Required:* Replenish the reallocated amount to UIDF through new allocation in FY 2025-26.
* **Urban Local Bodies (ULBs):**
* *Impact:* Implementing agencies for projects.
* *Action Required:* Comply with revised documentation requirements and manage project implementation within the UIDF guidelines.
Key Entities Referenced
Urban Infrastructure Development Fund: A fund (UIDF) created to finance urban infrastructure projects.
Ministry of Finance: The government ministry responsible for financial matters.
Pankaj Chaudhary: Minister of State in the Ministry of Finance.
Reserve Bank of India: The central bank of India, referred to here in relation to fund reallocation.
National Housing Bank: Financial institution involved in sanctioning projects under the UIDF.
Short-term Cooperative Rural Credit Refinance Fund: Fund (STCRCRF) that received reallocated funds from the UIDF.
Andhra Pradesh: One of the states in India, mentioned in Annexure I.
Tamil Nadu: One of the states in India, mentioned in Annexure I.
GOVERNMENT OF INDIA
MINISTRY OF FINANCE
DEPARTMENT OF FINANCIAL SERVICES
LOK SABHA
UNSTARRED QUESTION NO. 3457
ANSWERED ON MONDAY, 11th AUGUST, 2025/ 20 SRAVANA 1947 (SAKA))
URBAN INFRASTRUCTURE DEVELOPMENT FUND
3457. DR. KIRSAN NAMDEO:
Will the Minister of FINANCE be pleased to state:
(a) the total funds allocated and utilised under the Urban Infrastructure Development Fund
(UIDF) during 2024-25 across the country, State-wise;
(b) the number of urban infrastructure projects sanctioned and completed thereunder so far;
and
(c) the key challenges in funds disbursement and project implementation along with the
manner in which the Government plans to address them?
ANSWER
MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI PANKAJ CHAUDHARY)
(a): Urban Infrastructure Development Fund (UIDF) was created with an initial corpus of
₹10,000 crore allocated for the Financial Year 2023-24, with an additional ₹10,000 crore
allocated for FY 2024-25. However, in order to augment the availability of funds for rural
credit, ₹7,000 crore, out of the allocation of UIDF for FY 2024-25, has been reallocated to
Short-term Co-operative Rural Credit Refinance Fund (STCRC-RF). As informed by the
Reserve Bank of India (RBI), the reallocated amount would be replenished to UIDF through
new allocation in FY 2025-26. As on 31.7.2025, projects amounting to ₹13,138.17 crore have
been received from States/UTs for which loans amounting to ₹10,746.60 have been
sanctioned. Further, State/UT-wise details of projects received and loans sanctioned under
the UIDF, during FY 2024-25, are provided at Annexure-I.(b): As informed by the National Housing Bank (NHB), as on 31.7.2025, 816 projects have
been sanctioned, out of which 9 have been completed, under UIDF.
(c): Based on the review of UIDF undertaken and feedback received from the stakeholders,
some of the challenges identified and addressed are as follows:
(i) The submission of alternative documents viz. tender documents, detailed work orders
etc. in lieu of Detailed Project Report (DPR) has been permitted for State Sponsored
Projects with UIDF loan upto ₹50 crore and for Urban Local Body (ULB) Sponsored
Projects with UIDF loan upto ₹20 crore in order to make project submission and
evaluation process smoother and efficient.
(ii) The Project Sanctioning Committee (PSC) has been rationalized to enhance operational
efficiency and speed up the processing of proposals under UIDF.
(iii)With a view to broaden the fund’s scope, the eligible projects under UIDF were
expanded to cover all urban infrastructure activities except Housing, Power/Telecom
and Urban Transport.
Further, disbursement under UIDF is made on reimbursement basis except mobilization
advance. Projects undertaken within the UIDF usually entail long implementation periods,
necessitating phased disbursements linked to the project completion.
******Annexure-I as referred to in Part (a) of the Reply
(Amount in ₹ crore)
No. State/ UT Amount of Amount of loans
projects received sanctioned
(FY 2024-25) (FY 2024-25)
1 Andaman & Nicobar Island 0 0
2 Andhra Pradesh 613.29 0
3 Arunachal Pradesh 0.95 0.95
4 Assam 263.48 262.2
5 Bihar 0 0
6 Chandigarh 0 0
7 Chhattisgarh 330.75 384.72
8 Dadra & Nagar Haveli and Daman & 0 0
Diu
9 Goa 0 0
10 Gujarat 420.26 314.45
11 Haryana 399.13 301.67
12 Himachal Pradesh 0 12.27
13 Jammu and Kashmir 8.27 8.27
14 Jharkhand 5 5
15 Karnataka 972.27 706.73
16 Kerala 135.78 131.9
17 Madhya Pradesh 412.68 412.5
18 Maharashtra 1,164.56 1,117.33
19 Manipur 0 0
20 Meghalaya 0 0
21 Mizoram 8.51 0
22 Nagaland 0 0
23 Odisha 0 0
24 Puducherry 0 4.82
25 Punjab 0 0
26 Rajasthan 1,126.57 822.18
27 Sikkim 0 0
28 Tamil Nadu 560.33 526.33
29 Telangana 1,715.56 1,635.10
30 Tripura 99.04 54.78
31 Uttar Pradesh 0 0
32 Uttarakhand 7.32 7.32
33 West Bengal 0 0
Total 8,243.75 6,708.52
(Source: NHB)