Performance-based challenge fund of Rs.8,000cr recommended for incubation of new cities
A total of 5,956 projects worth Rs.179,413 crore have been tendered out as of 30 June 2021 under the Smart City Mission. Work orders have been issued for 5,314 projects worth Rs.148,029 crore while 2,734 projects worth Rs.46,769 crore have been completed.
This update was given by Minister of State in the Ministry of Housing and Urban Affairs Kaushal Kishore in a written reply to the Rajya Sabha on 27 July 2021.
The Central Government has released Rs.23,925 crore to States/Union Territories for their Smart Cities as of June 2021.
Out of 1,794 projects worth Rs.57,124 crore that were part of the Smart City Plans of Smart Cities selected in Round-1, 1,667 projects (93%) worth Rs.45,374 crore (79%) have either been completed or are under implementation.
All efforts are being made for timely completion of projects undertaken in these cities, Kishore assured.
Meanwhile, the XV Finance Commission, in its report submitted to the Government, has recommended a performance-based challenge fund of Rs.8,000 crore to States for incubation of new cities, he said.
The amount available for each proposed new city is Rs.1,000 crore and a State can have only one new city under the proposed scheme.
Thus, a maximum of eight States can avail this grant for eight new cities over the award period of the Commission.
The detailed modalities for the scheme have not been worked out, he said.
Moreover, Area Based development is a key strategic component of the Smart Cities Mission, launched on 25 June 2015.
Area Based development models include city improvement (retrofitting), city renewal (redevelopment) and/or city extension (Greenfield development).
One hundred cities have been selected for development as Smart Cities over 4 rounds of competition conducted between January 2016 to June 2018. #tenders #projects #investment #infrastructure /fiinews.com
