EUR 100 million loan for 15 Smart Cities Project

By Accommodation Times Bureau

The Minister of Housing and Urban Affairs on Monday announced the launch of the Smart cities digital payment award, he said that it is intended to promote ‘Digital India’ and ease of living for India’s urban residents by promoting digital payments and encouraging Smart Cities to adopt innovative digital payments initiatives.

Minister launched several new initiatives under AMRUT and the Smart Cities Mission, here on Monday.

After selecting 100 smart cities now its turn to project implementation in line with the NITI Aayog guideline where under the Indo-French partnership program, at least 15 projects would be selected through an All-India Challenge. The projects would be in four sectors- Sustainable Mobility, Public Open Spaces, Urban governance & ICT and Social and Organizational Innovation in low-income settlements, Minister said during launching the Smart Cities fellowship and internship program.

Puri said, “A Loan of EUR 100 million would be extended by AFD to selected cities projects in the form of a grant. The repayment of the principal and interest would be equally shared by the Central Government and State Government on 50:50 basis.”

Each awarded cities project will benefit from a grant ranging from INR 20 Cr. to INR 80 Cr (max project outlay: 160 crores).

The cities grant is expected to cover from minimum 50% up to 80% of the project cost subject to a maximum of INR 80 Cr. and additional funding amounting to least 20% to be secured by the awarded cities through its own resources.

In addition, EUR 6 million would be given the grant to be shared between the SPVs of the Smart Cities, State Governments and Ministry of Housing and Urban Affairs for capacity building activities.

The National Institute of Urban Affairs would conduct the Challenge process for selection of projects under the Indo-French partnership, he said.

The financial support and foreign technical assistance will help Smart Cities to access World Class expertise for selected innovative projects. It also intends to improve peer learning activities & cooperation within the smart cities and enhance the knowledge both at the State and National Level.

The Local Area Plan (LAP) and Town Planning Scheme (TPS) has been formulated under the AMRUT to enable planning for developing infrastructure in the Brownfield areas (those parts of the city that are already developed but not able to sustain the pressure on the existing infrastructure) & the Greenfield areas (periphery of the city that is prone to haphazard growth and development), respectively. They will be implemented in 25 selected cities on a pilot basis. The existing areas or Brownfield areas can be redeveloped by preparing Local Area-based Plans (LAP).  While at the same time, the Town Planning Schemes (TPS) can be implemented for planned urban expansion in the peripheral Greenfield areas.

An amount of Rs. 50 crore would be provided as Central assistance at Rs 2.00 crore per city for identified 25 cities for preparing LAP/TPS. The Central Assistance shall be released in 3 instalments; 20% with the submission of the preliminary proposal, 40% during submission of the draft plan and the remaining 40% during submission of the final plan.

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