In addition to the functions, duties and powers mentioned in other sections of this Act, the Fund shall have following functions, duties and powers;
(a) To set the policy of operation and management of the Fund and to implement or cause to implement thereof.
(b) To approve annual as well as periodical programme and budget of the Fund and to manage or cause to manage necessary financial resources for the same.
(c) To provide economic and technical support for construction, development and expansion of town and for operating basic social service and income oriented project and for the body related with town development.
(d) To prepare necessary economic and technical infrastructure for construction, development expansion and diversification of town and to implement or cause to implement the programme relating with
development of town and to encourage bodies related with development of town for their maximum participation in the said programme.
(e) To provide necessary co-operation to train the staffs working in the body related with town development.
(f) To provide necessary consultancy service to the body related with town development on the matter of town development.
(g) To monitor and supervise the projects and programmes conducted from the loan provided by the Fund.
(h) To act in accordance with the agreement concluded between Government of Nepal and a foreign organization in respect of the Fund.
(i) To invest money of the Fund without prejudicing the interest of the Fund in order to purchase share, debenture or any other bond issued  by any institution established pursuant to the prevailing law.
(j) To approve the plan and programme of the Fund.
(k) To cause to carry out the annual audit of the Fund.
(l) To submit the annual report and audit report of each year to the Government of Nepal.
(m) To approve organizational structure of the Fund and to create necessary post as per the said structure (n) To
perform other necessary functions to carry out the objectives of the Fund