Budget 2020: FM proposes 5 new Smart Cities

2/3/2020 6:09:00 PM

In her Budget speech, Finance Minister Nirmala Sitharaman has proposed the setting up five new Smart Cities. The government in 2020 has allocated Rs 6,450 crore for the Smart Cities Mission for the year 2020-2021. There has been no change in allocation from what was budgeted last year. “There is a case for maximising the benefits of three separately developing economic activities: (1) the upcoming economic corridors (2) revitalisation of manufacturing activities and (3) Technology and the demands of aspirational classes. We have to benefit from their convergence. Hence, it is proposed to develop five new smart cities in collaboration with States in PPP mode. Such sites would be chosen that offer the best choices in terms of aforementioned principles,” the finance minister said in her Budget speech. Experts have welcomed the announcement. “Focus has been retained on urban development by committing to five additional smart cities,” said Anurag Mathur, chief executive officer, Savills India. In 2019, a sum of Rs 6,450 crore was allocated for the Smart Cities Mission for 2019-20 against Rs 6,169 crore in 2018-19. The government in 2018 had proposed over 50 percent increase in the allocation for smart cities from Rs 4,000 crore for 2017-2018 to Rs 6,169 crore for 2018-2019. Under the SCM, 100 Smart Cities have been ed in four rounds based on an all India competition. All 100 cities have incorporated Special Purpose Vehicles (SPVs). Since the launch of the mission, 5,151 projects, worth more than Rs 2 lakh crore, have been identified for implementation which are at various stages of implementation. As per statistics made available by the ministry of housing and urban affairs, the value of tendered smart city projects is over Rs 1,62,000 crore, the value of work orders issued is around Rs 1,20,000 crore and the value of all completed projects is more than Rs 25,000 crore. The Smart Cities Mission was launched on June 25, 2015. The first list of 20 cities announced on January 28, 2016. A fast-track list of 13 cities was announced on four months later. The second list of 27 cities was announced on September 20 2016. The third list of 30 cities announced on June 23, 2017 and the final list was announced in January 2018. Under the mission, the Centre allocates Rs 500 crore to each of the cities for implementing projects proposed by it. This amount is matched with a grant of the same amount by the respective state. Source: Moneycontrol.com

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