PM Narendra Modi Cabinet Nod For Smart City Project

Smart City aspirants will be selected through a “City Challenge Competition” intended to link financing with the ability of the cities to perform to achieve the mission objectives.

Each state will shortlist a certain number of smart city aspirants as per the norms to be indicated and they will prepare smart city proposals for further evaluation for extending central support. The central spending approved for next five years under the two new missions which are interlinked assumes significance in the backdrop of the approved Plan outlay of Rs 42,900 crore for JNNURM that was implemented over nine years between 2005 and 2014. Out of this, actual central assistance released was Rs 36,398 crore only.

Also in a significant departure from JNNURM, central government will not appraise individual projects. Central assistance will be to the extent of 50 per cent of project cost for cities and towns with a population of up to 10 lakh and one-third of the project cost for those with a population of above 10 lakhs.

Further to today’s Cabinet approval, a minimum investment of over Rs 2 lakh crore would flow into urban areas over the next five years since States and urban local bodies would mobilise matching resources ranging from 50 per cent to 66 per cent.

READ MORE: 10 Indian Women Whose Stories Paved The Way For Women Equality and Here's How India & The World Is Helping Quake-Hit Nepal