Budget 2023: Urban infra fund will give much-needed impetus, says NIUA director

In her speech, FM Sitharaman said the fund would be used to create infrastructure in Tier-2 and Tier-3 cities through priority sector lending shortfall.

The Urban Infrastructure Development Fund, announced by Finance Minister Nirmala Sitharaman in her Budget 2023-2024 speech Wednesday, would provide the impetus needed for the growth of infrastructure in cities, Hitesh Vaidya, Director, National Institute of Urban Affairs (NIUA), said.

“The announcement in the budget that government will establish the Urban Infrastructure Development Fund, to be managed by the National Housing Bank, is a great move, which will provide much-needed impetus for urban infrastructure growth,” Vaidya told The Indian Express.

In her speech, FM Sitharaman said the fund would be used to create infrastructure in Tier-2 and Tier-3 cities through priority sector lending shortfall.

“While we are awaiting the details of the fund, I can foresee the strengthening of the urban infrastructure contributing to, among other things, the development of businesses and providing a much-needed fillip for sustainable urban growth, particularly in Tier-2 and Tier-3 cities. The Urban Infrastructure Development Fund will also further accelerate the project development process and implementation,” Vaidya said.

The Budget also included a focus on urban planning reforms and sustainable development, with Sitharaman saying cities and states would be encouraged to take steps in the right direction.

“This means efficient use of land resources, adequate resources for urban infrastructure, transit-oriented development, enhanced availability and affordability of urban land, and opportunities for all,” she had said.

Damini Nath is an Assistant Editor with the national bureau of The Indian Express. She covers the housing and urban affairs and Election Commission beats. She has 11 years of experience as a reporter and sub-editor. Before joining The Indian Express in 2022, she was a reporter with The Hindu’s national bureau covering culture, social justice, housing and urban affairs and the Election Commission. Expertise Key Coverage Areas: Damini Nath currently specializes in reporting on two crucial beats: Housing and Urban Affairs: Providing in-depth analysis and reporting on India's urban development, policy, and housing issues. Election Commission (EC): Offering authoritative coverage of electoral processes, policies, and the functioning of India's constitutional body responsible for conducting elections. Professional Background: Her extensive experience includes roles as a reporter and sub-editor, demonstrating a comprehensive understanding of the journalistic process from fieldwork to final production. Previous Role: Before joining The Indian Express in 2022, she served as a dedicated reporter with The Hindu’s national bureau, where her reporting portfolio included: Culture Social Justice Housing and Urban Affairs The Election Commission beat (a consistent area of focus). Trustworthiness Damini Nath's decade-plus career at two of India's most respected and authoritative news institutions, The Indian Express and The Hindu, underscores her commitment to factual, impartial, and high-quality reporting, establishing her as a trusted and credible source for news on urban governance and electoral matters. ... Read More

The Urban Infrastructure Development Fund, announced by Finance Minister Nirmala Sitharaman in her Budget 2023-2024 speech Wednesday, would provide the impetus needed for the growth of infrastructure in cities, Hitesh Vaidya, Director, National Institute of Urban Affairs (NIUA), said.

“The announcement in the budget that government will establish the Urban Infrastructure Development Fund, to be managed by the National Housing Bank, is a great move, which will provide much-needed impetus for urban infrastructure growth,” Vaidya told The Indian Express.

In her speech, FM Sitharaman said the fund would be used to create infrastructure in Tier-2 and Tier-3 cities through priority sector lending shortfall.

“While we are awaiting the details of the fund, I can foresee the strengthening of the urban infrastructure contributing to, among other things, the development of businesses and providing a much-needed fillip for sustainable urban growth, particularly in Tier-2 and Tier-3 cities. The Urban Infrastructure Development Fund will also further accelerate the project development process and implementation,” Vaidya said.

The Budget also included a focus on urban planning reforms and sustainable development, with Sitharaman saying cities and states would be encouraged to take steps in the right direction.

“This means efficient use of land resources, adequate resources for urban infrastructure, transit-oriented development, enhanced availability and affordability of urban land, and opportunities for all,” she had said.