Municipal Development Funds provide a much needed link between civic infrastructure financing needs and domestic capital markets. The urban financing challenge for Tamilnadu, given the high urbanisation trends and undersupply of civic infrastructure is self-evident.

Since 1988, Government of Tamil Nadu has been implementing the Tamil Nadu Urban Development Project (TNUDP) which was financed by International Development Agency (IDA) of World Bank, of which one of the components was the Municipal Urban Development Fund (MUDF). more....