NEW DELHI: Urbanisation:
Moving forward on the ambitious scheme for urban transformation, the central government in its budget has proposed to set up five new Smart Cities. The Centre has allocated Rs 6,450 crore for the Smart Cities Mission for 2020-2021. There has been no change in allocation from what was budgeted last year.
Under the mission, 100 Smart Cities have incorporated Special Purpose Vehicles (SPVs). As per recent data 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. “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,” said the finance minister in her budget speech. The mission was launched in June 2015 and since then 5,151 projects, worth more than Rs 2 lakh crore, have been identified which are at various stages of implementation. Officials are of the view that creation of SPVs and tendering process have taken a long time and slowed the mission’s progress.