Lok Sabha Question No. 3457 (UNSTARRED), answered on 2025-08-11
Subject: Urban Infrastructure Development Fund
Ministry: FINANCE
Asked by: Dr. Kirsan Namdeo

## GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES

## LOK SABHA UNSTARRED QUESTION NO. 3457

ANSWERED ON MONDAY, 11 th  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.

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## Annexure-I as referred to in Part (a) of the Reply

(Amount in ₹ crore)

| No.   | State/ UT                           | Amount of projects received (FY 2024-25)   | Amount of loans sanctioned (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 & Diu | 0                                          | 0                                         |
| 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)