To promote development of modern infrastructure in small and medium townships, the Union Government is seeking Cabinet approval of Urban Reforms Infrastructure Fund (URIF). This programme is part of two major initiatives introduced by Planning Commission KC Pant in the 10th Plan aimed at reducing intra State and inter-State disparities. The fund will have an initial capital of Rs 500 crore and would be made available to the small and medium townships which undertake the defined reforms to accelerate economic and industrial activities. The government has decided to improve basic amenities in small and medium townships as it is of the opinion that the distorted development of cities and unregulated urbanisation is creating serious economic and social problems.