Urbanization means modernization, industrialization, good social lifestyle, busy people etc. Because of more facilities and opportunities, there is more population in urban areas. Urban behavior, structure, and demography are the main three factors that contribute to the urbanization. Urban behavior means a change in fashion or lifestyle of people living in there. Urban structure means a change in economic structure or economic activities. In the urban area, people are involved in business and trade rather than in agriculture.
Although some cities in Nepal have been declared as urban areas, they lack the proper facilities that an urban area should possess. Lack of proper transportation facilities, employment opportunities, health and education facilities, problems of electricity outages, shortages of pure drinking water, lack of proper sanitation, pollution are some major factors that prevent the place from being well urbanized.
Thus, to overcome the above limitations, NIFRA has been allowed to invest in certain sections of urban sector.