In spite of the existing programmes of both the central and the state governments was a continuous gap between the availability and extent of requirements of funds for such projects, more commonly found in small and medium-sized cities.
In order to make the local bodies self-sufficient and to ensure availability of resources at all times, the Government introduced the Pooled Finance Development Fund Scheme.
By providing credit enhancement facilities to ULBs based on their creditworthiness, the scheme has helped these local bodies access market borrowings, thereby addressing their funding challenges for infrastructure projects.
ULBs that were previously considered high-risk borrowers now have access to affordable financing options, thanks to the credit enhancement support offered by the fund.
By enabling ULBs to become financially self-sufficient and improve their infrastructure, the scheme is laying the foundation for a more prosperous and sustainable urban future in India.