Rajasthan Urban Development Fund (RUDF)


Government of Rajasthan has established “Rajasthan Urban Development Fund” (RUDF) vide order no. F.(02)/RUIFDCO/RUDF/2010-10/5762 dated 26.03.2010.


The Rajasthan Urban Development fund (RUDF) is a fund created by the Government of Rajasthan with two fold objectives to ensure comprehensive development of the urban areas across the state:

·   To financially support (Gap Funding) the Urban Local Bodies in execution of the projects sanctioned under various schemes.

·   To finance the new projects enhancing basic facilities in the urban areas.


In order to overcome the problems of lack of infrastructure in the municipal areas, and also to support the ULBs financially to bridge the gap in any of the projects sanctioned by the Government of India, State Government, others and any other suo-moto projects, the state government has decided to create the fund. The creation of this fund is one of the mechanisms which would help the ULBs in tackling their financial crisis partially for various ongoing and new projects.

The RUDF is being managed by Rajasthan Urban Infrastructure Finance & Development Organization (RUDSICO) on behalf of the Government of Rajasthan. RUDSICO charge 0.25% of the disbursable loan amount from the ULBs as administrative charges.

Fund sharing Mechanism:


A total of Rs. 400.00 cr. is to be collected initially to raise this fund. The size of the fund has been increased from Rs. 400.00 cr. to Rs. 1000.00 cr. vide order no. F.(02)/RUIFDCO/RUDF/2009-10/7638 dated 22.08.2011.

Seed Capital:

a.    Government of Rajasthan                                        Rs.  375.00 Cr.

b.    ULBs & UITs / FIs/ Bank                                         Rs.  625.00 Cr.