Government has set up the Urban Infrastructure Development Fund (UIDF) through use of priority sector lending shortfall for creating urban infrastructure in Tier 2 and Tier 3 cities. UIDF aims to supplement the efforts of the State Governments / UTs for urban infrastructure development works implemented through Public/ State Agencies, Municipal Corporations and Urban Local Bodies, by providing a stable and predictable source of financing for providing basic services like Sewerage and Solid Waste Management, Water Supply and Sanitation, construction and improvement of drains/ storm water drains, etc. The Fund is managed by the National Housing Bank.
