Rs 7 lakh crore Needed for the next 20 years to built 100 smart cities

Rs 7 lakh crore Needed for the next 20 years to built 100 smart cities

Rs 7 lakh crore Needed for the next 20 years to built 100 smart cities

The urban development ministry has estimated the amout needed to built Prime Minister Narendra Modi’s grand vision to build 100 Smart Cities. And it says that Rs 7 lakh crore over the next 20 years, which works out to a whopping Rs 35,000 crore every year to put the requisite infrastructure in place. Union finance minister Arun Jaitley in Budget earmarked Rs 7,060 crore this fiscal to “provide the necessary focus” on the scheme.

The government is pinning its hopes on the private sector and the public-private partnership (PPP) mode to make the huge investment.

“However, it is expected that most of the infrastructure will be taken up either as complete private investment or through PPPs. The contribution from the government of India and states/urban local bodies will be largely by way of viability gap support,” the note says.

Interestingly, while the draft note banks heavily on private sector investment, urban development secretary Shankar Agarwal had in a closed-door discussion with business leaders recently admitted that “the experience in past PPP projects in India is not encouraging”.

He appeared to be referring to the roads and highways sector, wherein the PPP mode has turned out to be a huge fiasco resulting in several major projects getting stalled and the government stepping in with its own funding to get them going again. Similarly, in the Railways there have been few or no takers for PPP projects
The problem is that these projects require long gestation lags before they can turn in any profits because of which the private sector is hesitant to invest in them. In the meeting chaired by Agarwal on smart cities, private sector chief executives clearly flagged the “return on investment” as a crucial issue that would determine business decisions on smart cities.

The urban development ministry expects leading IT companies like Microsoft, IBM, Cisco, TCS and Infosys “to be actively involved in the process of designing smart city projects and hand holding the city and state governments in coming up with visionary plans”.

The ministry has incorporated views of global consulting companies like Mackenzie, KPMG and PWC on a wide range of features that are the hallmark of a smart city.

Dattatraya Dhankawde asked PM to include Pune in the list of smart city plan

Dattatraya Dhankawade Requested Prime Minister to Include Pune among the 100 cities Plan.

Dattatraya Dhankawde asked PM to include Pune in the list of smart city plan
Mayor Dattatraya Dhankawde on Thursday wrote a letter to the Centre saying that Pune should be included in the list of plant smart cities,

It said Pune has a GDP of $50 billion, which is slated to reach to $142 by 2025. “The city is expected to have highest per capita GDP in the country by 2025. The city is spread over 243 sq km with current population of 3.2 million and is looking at unprecedented growth acceleration. And after the merger of fringe villages, the municipal limits will increase to 470 sq km, which will exceed the size of Brihanmumbai Municipal Corporation.”

Government plans to develop 100 smart cities and an allocation of Rs 7,060 crore was proposed in the Union Budget. Smart cities plan, which will have partial funding from the central exchequer, focuses on developing local infrastructure and adopting an inclusive approach while making civic services and governance efficient and transparent using the information and communication technologies.

The state government and union government would have to work together to get cities of the state on the list of smart cities, he said.

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