New Delhi, Feb. 1 -- States and cities will be encouraged to undertake urban planning reforms and actions to transform cities into 'sustainable cities of tomorrow', Union Finance Minister Nirmala Sitharaman said in her Union Budget speech presented on Wednesday.

"This means efficient use of land resources, adequate resources for urban infrastructure, transit-oriented development, enhanced availability and affordability of urban land, and opportunities for all," she said.

Urban Infrastructure Development Fund

Sitharaman mentioned that an Urban Infrastructure Development Fund (UIDF) will be established through use of priority sector lending shortfall.

This will be managed by the National Housing Bank, and will be used by public agencies...