Minister for Urban Development Kul Man Ghising has said that the Town Development Fund (TDF) will be made effective by expanding its jurisdiction and investment scope.

Minister Ghising, who also oversees the portfolios of the Ministry of Energy, Water Resources and Irrigation, and the Ministry of Physical Infrastructure and Transport, said that the Fund under the Ministry of Urban Development would not remain idle but would be mobilised to invest in areas that ensure economic returns.

Taking a briefing on the activities of the Fund, the Minister emphasised the need to channel investments into emerging sectors such as e-mobility, including the development of electric vehicle charging stations.

Stating that projects that generate energy from waste could be an investment area for the TDF, which will mobilise investment in partnership with municipalities, Ghising suggested studying the feasibility of investing in such projects that can also generate energy and manage waste.

He said that the necessary legal provisions will also be amended to further expand the jurisdiction to be invested and the Fund to invest.

According his secretariat, Minister Ghising expressed confidence that accreditation from the Green Climate Fund is in the process of being obtained and that once the accreditation is received, the TDF will be provided with a large financial grant for investment in green energy-related projects.

Binod Prakash Pandit, Executive Director of the TDF, said that the Fund currently has Rs. 7 billion in equity, Rs. 5.19 billion from the Asian Development Bank, Rs. 120 million from the World Bank, and Rs. 2 billion as government loans. So far, the Fund has disbursed loans worth Rs. 16 billion.

The TDF has been providing both financial (loan/grant) and technical assistance to various urban infrastructure projects, including bus parks, drinking water systems, land development, and multi-purpose building construction.

A new concept has also been introduced to mobilise the Fund for the reconstruction of urban buildings damaged during the recent Gen-Z movement.