 "Central fund only for infra projects in smart cities; no timeframe yet")
In April, the Union Cabinet had cleared Rs 50,000 crore as central assistance for 100 smart cities. Each city can get Rs 100 crore of central funds annually for five years; the rest has to be financed by states, local bodies and private parties.
Prime Minister Narendra Modi, while launching three projects — Smart Cities Mission, Atal Mission for Rejuvenation and Urban Transformation (Amrut) and Housing for All Mission in Urban Areas — here on Thursday, said for the first time in the country, people and the urban leadership would play a critical role in deciding the future of their cities. So far, cities grew based on investment choices made by builders, the PM said. That will change, with a bottom-up approach.
However, no time frame has been provided for completion of the smart city project, except that 20 cities will be chosen through a two-pronged competition this financial year for central assistance and the remaining 80 in the following two years. Once 100 cities are selected by the states, they will compete among themselves for making it to the first list of 20. The competition will be based on points given for a city’s vision, proposal, financing ability, cost effectiveness of a project, innovation and so on.
While a public-private participation model will be the backbone for resource mobilisation, the project will be operated through 50-50 Special Purpose Vehicles between states and urban local bodies. To avoid delays and non-completion of projects, states and Union Territories will be required to indicate resource tie-ups under state-level action plans.
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From the minimum area norms in the guidelines, any retrofitting or change in an existing project must measure at least 500 acres, a new project must be spread over at least 250 acres and the criterion for redevelopment is 50 acres. In the case of northeast and Himalayan states, the area to be considered will be 50 per cent lower.
The smart city contours also define renewable energy benchmarks. For instance, 10 per cent of energy needs to be met from renewable sources, 80 per cent of building construction should be ‘green’ and 35 per cent of housing in new projects must be for economically weaker sections (EWS).
An inter-department task force will be set up to coordinate all aspects of smart city development. In fact, the PM mentioned that the Centre had almost withdrawn from the earlier practice of appraising and sanctioning individual projects, ending the scope for subjectivity and discretion.
On a house for all by 2022, the government has decided ownership to be in the name of a woman or jointly with her husband. The guidelines state that houses should be of 30 sq m carpet area for EWS. A central grant of Rs 1 lakh on an average per house will be provided, that can be used by states for any slum redevelopment project. As announced earlier, interest support at 6.5 per cent will be paid soon after sanction of loan to the beneficiary, to bring down the monthly instalment.
The PM defined a smart city as one that’s a step or two ahead of people's aspirations. Technology, transportation, energy efficiency, walk-to-work and cycling were among the elements mentioned by him to make a city smart.
Referring to hardships faced by home buyers at the hands of builders, the PM promised a regulator soon, through the real estate Bill in Parliament.
Developers have supported the PM’s initiative on the three urban schemes. Rajeev Talwar, whole-time director, DLF, said: "A comprehensive policy on urban rejuvenation was overdue because cities have emerged as growth engines for our economy.’’ DLF is in sync with the PM’s vision, he said, adding the company’s Cyber City in Gurgaon was an example of the ‘walk to work’ idea.
Manoj Gaur, president of the developers’ association, Credai, in the National Capital Region, said India was in dire need of an infrastructure push. ‘’Development of smart cities and rejuvenation of existing cities would certainly revamp their current status and would help India realise its ambition of Housing for All.’’
Samir Jasuja, founder and chief executive of PropEquity, however argued that, “the idea of housing for all can only become successful if there is a will to develop an inclusive plan. That is possible only if the government puts in place enough safeguards to keep the builder lobby out of this policy.’’
40th anniversary of Emergency
Prime Minister Narendra Modi made a political pitch at the inauguration of the Smart City Mission here on Thursday, with ample references to the Emergency imposed under the Congress rule 40 years ago and that the current NDA government wants to make India the finest democracy. BJP leader LK Advani had recently said in an interview that Emergency-like situation could emerge again and forces that can crush democracy are stronger now, triggering a debate on whether he was referring to the present government.
"Nobody can forget what happened on June 25, 40 years ago. India was converted into a jail when Emergency was imposed," Modi told the audience gathered to listen to his vision on smart cities. "Newspapers were shut and radio aired only what the government wanted." He added, "Dreams and aspirations that inspired people to struggle against the emergency, should be a beacon for this gathering."
On providing house to all by 2022, he made another dig at Congress, saying that people would ask this government if the 20 million housing shortfall is not met by the promised timeframe of 2022, but they wont ask them (referring to Congress) why there's such a huge shortfall. "But that will not make us sit quiet."
Chief ministers of two BJP-ruled states, Maharashtra and Haryana, joined the PM on the dais.