In connection with the Urban Infrastructure Development Fund (UIDF), which of the following statement/statements is/are valid?

I. The fund will be established through reserved bonds taken from the G-Sec market.

II. The fund is to be exclusively availed by private agencies to create urban  infrastructure in Tier 2 and Tier 3 cities.

III. Eligible activities for UIDF shall be connected to the Missions and Programmes of the Ministry of Housing & Urban Affairs (MoHUA).

IV. The fund will be collectively managed by a cluster of Municipal Cooperative Banks.

Select the correct answer using the codes given below:

This question was previously asked in
APPSC Group-1 (Prelims) Exam Official Paper-I (Held On: 17 Mar, 2024)
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  1. Only III
  2. I, II and IV
  3. II, III and IV
  4. II and III

Answer (Detailed Solution Below)

Option 1 : Only III
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Detailed Solution

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The correct answer is Only III.

Key Points

  • The Urban Infrastructure Development Fund (UIDF) is designed to support urban infrastructure development in Tier 2 and Tier 3 cities.
  • Eligible activities for UIDF are connected to the Missions and Programmes of the Ministry of Housing & Urban Affairs (MoHUA), focusing on urban infrastructure projects.
  • UIDF is aimed at improving the urban infrastructure, and it aligns with the broader goals of the government to enhance the quality of life in smaller cities.
  • The fund will not be established through reserved bonds from the G-Sec market, nor will it be exclusively availed by private agencies or managed by Municipal Cooperative Banks.

Additional Information

  • Urban Infrastructure Development Fund (UIDF)
    • The UIDF is intended to support the creation and enhancement of urban infrastructure in Tier 2 and Tier 3 cities in India.
    • It aims to bridge the infrastructure gap in smaller cities, making them more livable and sustainable.
    • The fund is not to be utilized exclusively by private agencies; it is available for public projects aligned with the Ministry of Housing & Urban Affairs' Missions and Programmes.
    • The management and establishment of the fund are not through reserved bonds from the G-Sec market, nor is it managed by Municipal Cooperative Banks.
  • Ministry of Housing & Urban Affairs (MoHUA)
    • MoHUA is the apex body responsible for the formulation and administration of the rules and regulations and laws relating to the housing and urban development in India.
    • It undertakes various missions and programmes aimed at improving urban infrastructure, housing, and living conditions in cities.
    • Key missions under MoHUA include the Smart Cities Mission, AMRUT (Atal Mission for Rejuvenation and Urban Transformation), and the Pradhan Mantri Awas Yojana (PMAY).
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