Objective To provide reform linked assistance to States so as to incentivise and accelerate
the process of urban reforms identified by Government of India, Ministry of Urban
Employment and Poverty Alleviation from time to time.
Outlay and currency of the scheme Rs. 500 crores per annum during the X th Plan. During
2003-04, outlay of Rs. 500 crores is available in the budget of Ministry of Finance under the
Head “Initiative for Strengthening Urban Infrastructure”.
Basis for State wise allocation Percentage of urban population of the State/UT to the total
urban population of the country.
Type of assistance The year wise Additional Central Assistance (ACA)/incentives would be
released as a 100% grant instead of 30: 70 or 90:10 (grant:loan) for both non-special
category States and special category States Funds will be released by Ministry of Finance as
additional Central assistance on the recommendations of this Ministry. For availing benefit
under Urban Reforms Incentive Fund, State would be required to enter into a prescribed
Memorandum of Agreement (MOA) with Central Government.
Release of Instalments under URIF. 50% of the States’ allocation for 2003-04 will be
permitted to be released as incentive on the signing of MOA by the State Government for
the agreed reforms areas as signed for in the MOA/truncated MOA and balance 50% on
achievement of prescribed milestones for 2003-04 as given in the Annexure to the MOA
against each reform area separately.
Ultimate use of URIF Funds by States The funds under URIF would be utilized by the States
only for Housing, Urban Development and Poverty Alleviation projects/schemes including
filling of any gaps in the funding of such projects/schemes.
Plot No. 334,Visalakshinagar, Visakhapatnam - 530043. Andhra Pradesh, India.