Smart Cities Mission Gets a Green Signal by PM Modi

Q: The promise of Acche Din by the Modi Government is gaining Pace.

Rubiya,

29th June 2015

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Replies (14)

Hi all,
The mission of Housing For All will also gain a much needed boost once infrastructure in regions get corrected and private developers also start picking pace.

Our current govt. know it very well. Understanding the direct co-relation between infrastructure and demand in realty sector, the Central Government has given complete freedom and flexibility to State Governments to design and execute basic infrastructure facilities.

Rajiv Bajaj, Pune

3rd December 2015

Comment

This upgradation will help these regions to fulfil the basic needs for real estate to perform and succeed in the long run.

For all the projects approved, the government will contribute 50% of the funds with an equivalent amount to be organized by the states themselves. This makeover of infrastructure in 272 cities and towns will duly fuel and introduce a fresh wave of realty demand in near future.

debabrata sarkar, Kolkata

3rd December 2015

Hi folks,
Centre has finally begun with efforts by clearing proposals worth Rs 11654 crore that are aimed towards improving basic infrastructure and facilities in 272 cities and towns, which include investments worth Rs 3120 crore in 102 cities and towns.

Suresh,

3rd December 2015

Comment

Right and this move will gradually help shape the future demand for housing and office spaces thereby increasing its prospects of being accepted by the potential customers. The government has given a green signal for Rs 438 crore investment in 18 cities identified in Haryana during the next fiscal year. Likewise, 9 cities in Chhattisgarh would get Rs 573 crore and a sum of Rs 416 crore has been assigned for 12 cities in Telangana and Rs 588 crore for 9 cities in Kerala. The largest chunk of funds is being earmarked for West Bengal with a sum of Rs 1105 crore meant for 54 cities and towns across the state.

Amitabh, Noida

3rd December 2015

@Amitabh,
And for the growth of civic infrastructure, centre has also approved investments worth about Rs 2386 crore towards water supply projects in 58 cities, Rs 495 crore for sewerage projects in 17 cities, Rs 106 crore for storm water drains in 9 cities, Rs 61 crore for urban transport in 9 cities and Rs 72 crore for development of parks and green spaces in 102 cities during this financial year.

Suresh,

3rd December 2015

Right Suresh,
The centre and the state governments will together invest about Rs 11654 crore to make available 135 litres of clean drinking water per person each day and provide sewerage linkages in all the 272 cities. What more we can expect from a one and half year old govt.

Amitabh, Noida

3rd December 2015

Right Auresh,
And to get the reasonable result, Govt. should support those cities or state first. "Jyada Khakar Bimar Hone se Achcha Hai ki Kum Khakar Healthy Rahe".........

Government grants will be leveraged to attract funding from internal and external sources but unless there is a possible business model or guarantee from the centre, this would not be easy.

Also, the track record of Public Private Partnership (PPP) projects is at best mixed and when there would be multiple parties associated like the center, states, local bodies and private entities, the task would be even more challenging.

Gauri Shinde, Pune

15th September 2015

Comment

Hi folks!!!!
We all know that the government has recently identified 98 cities for the Smart City Project. And fund for 20 cities have been distributed. But funding for these projects and its execution will be a major challenge for companies. There is no doubt that this mission is expected to improve the quality of life for citizens of these cities. For government, the focus is on sustainable and inclusive development and the idea is to look at intensive areas and create a exemplary model.

Suresh,

15th September 2015

Comment

Yes, but i think that it would be better if the Govt's focus on smaller number of cities first and then developing them as model for others going forward.

Under the mission, it will be operated as a centrally sponsored scheme and the center will give financial support to the limit of Rs 48000 crore over 5 yrs, which is on an average Rs 1000 crore per city per year. And an equal amount, on a matching basis, will have to be contributed by the state and urban local bodies.

Niyati Juthali, Mumbai

15th September 2015

It's a good thought Niyati, if implemented ......."Thoda Khaye But Achcha Khaye" .....Govt. should think over this policy first....

If we look at the list of cities which have been selected as smart city, many of them would already have annual municipal budgets running into multiple times of this figure. On the other hand, there are few states which have shown doubt for implementing the scheme and if there is not enough support from them in terms of funding and administrative help, it would be difficult to take this scheme to its reasonable result.

Suresh,

15th September 2015

Yes, any boom in the housing space is likely to benefit companies operating in its substitute sectors. Most famous name among them are companies in cement, paints, electricals and piping segments.

Amitabh, Noida

7th September 2015

Comment

Right Rajesh,
It is below 20% in case of water, below 60% in case of power and less than 80% for gas. Even the ministry have noted that for urban local governments, parking fee is an important source of revenue, besides having the dual impact of influencing commuting choices in favour of public transport.

Krishnendu, Pune

7th September 2015

Comment

It was also suggested that where services can be measured and beneficiaries identified, user charges must be applied. Water and sewerage charges should be levied separately rather than built into property tax, as is done by some states.

pradyumanapte, Mumbai

7th September 2015

Yes, experts agree that the thrust on improving existing infrastructure and lifestyle in urban India is likely to drive demand in a few select sectors. According to the Ministry of Urban Development, being classified a Smart City would require basic elements like adequate and potable water supply, efficient waste management solutions, electricity connections, affordable housing, high-speed Internet connectivity and more.

Krishnendu, Pune

7th September 2015

As per analysts, spending boost by the government will benefit companies in sectors associated with such amenities. However, it would be some time before the project related work starts reflecting in the numbers of these firms, given that it is yet to take off the ground. Investors need to take at least 3 to 5 years perspective while investing in any of these names. Here are some stocks that could emerge winners from the Smart City push.

Lalit Verma, Mumbai

7th September 2015

Hi everyone,
Today morning, i heard that the Urban Development Ministry has proposed plans linking of user charges to inflation to finance Smart Cities. Is it true?

debabrata sarkar, Kolkata

7th September 2015

Comment

Yes, the plan aims to increase cost recovery to at least cover operation and maintenance charges. Since there will be a huge resource requirement for Smart Cities Mission and Atal Mission for Rejuvenation and Urban Transformation, the Ministry consider the idea at a recent regional workshop on Smart Cities here.

Rajesh, Delhi-NCR

7th September 2015

@Rajesh....
I think, the ministry is planning to develop a Model Concession Agreement in Urban water supply based on tariff indexation to inflation to reduce risks.

debabrata sarkar, Kolkata

7th September 2015

Apart from that,the model document also covers risk distribution between public and private sectors, performance standards and coverage targets besides providing for flexibility to urban local bodies.

Union Development Ministry has hint that user charges were way below cost recovery in urban areas.

Rajesh, Delhi-NCR

7th September 2015

What is Global Business Forum? What will be its role in Smart City project?

Jack , Ahmedabad

4th September 2015

Comment

Good evening Jack!!!
Through Global Business Forum, representatives from national and international businesses, trade delegations, academia and governments will be able to link directly with latest innovations in technology, explore collaborations and seal partnerships through a single platform.

Bikram, Mumbai

4th September 2015

Yesterday, 3rd September,2015, Union Urban Development Ministry sanctioned a sum of Rs 192 cr under Smart City Mission for 96 cities included in the ambitious project. Each of the cities has been given Rs 2 cr for preparing Smart City plans with the assistance of technical and hand holding agencies.

pradyumanapte, Mumbai

4th September 2015

Comment

Really a good news for the nation....Sanction Orders were issued to 38 smart city representatives from 11 states who attended the Regional Workshop here. But funds for Delhi and Chandigarh will be sanctioned soon by the Home Ministry.

Kunal,

4th September 2015

@Kunal!!!
IIT Bombay Alumni Association is looking to work together with the government to assist in providing solutions for Prime Minister Narendra Modi's flagship programme of creating 100 smart cities.

The association has think of a platform "Global Business Forum" under which it will bring all the stakeholders in the realty industry under one roof to discuss the issues related to the sector, during a seminar to be held between October 16 to 18 this year.

pradyumanapte, Mumbai

4th September 2015

Hi Folks,
A big thanks to Union Cabinet which cleared the projects and has assigned huge amount for the twin projects.FDI drawn by these projects can change the shape of the urban lifestyle in India as well as will motivate much needed liquidity in the economy.

Joydeep D,

30th June 2015

Comment

Right Kunal,
West Bengal and Rajasthan get to nominate 4 cities and Bihar with single city. Odisha, Haryana, Telangana and Chhatisgarh with 2 cities each and J & K, Kerela, Jharkhand, Assam, Himachal, Goa, Arunachal and Chandigarh with one city.

Similarly for AMRUT scheme, 31 cities have been identified in Andhra Pradesh, 30 for Rajasthan, 28 in West Bengal, 27 in Bihar, 19 in Odhisa and Haryana, 18 in Kerala, 17 in Punjab, 15 in Telengana and 10 in Chhatisgarh

Sunil Joshi, Mumbai

30th June 2015

Comment

Good Morning all,
Housing for all is the base, as it first make sure that everyone gets a roof over their head. In the middle will be the AMRUT plan as rejuvenation and urban transformation is a need to move further towards smart living. Finally, the smart cities that already meet the basic requirement are now looked upon to be made ready for the next level infrastructure.

Upendra Limaye, Pune

30th June 2015

Good morning Upendra,
Since the plan is underway, the govt will be doing its bit to develop the next level infrastructure for the country. But at the same time, it will require most assistance from the private players of the country along with FDI. The plan to develop 100 smart and 500 AMRUT cities will not succeed until the entire nation stands as one unit.

Sanchita Chanda, Ahmedabad

30th June 2015

@Sanchita,
The Indian real estate market which was showing slow growth for many years now is welcoming this move as the government's budget costs for PMAY of Rs. 4 lakh crores is expected to be invested into the Indian real estate sector directly or indirectly and that also at a national level.

Rajesh, Delhi-NCR

30th June 2015

Hey Kunal And Joydeep,
With the launch of these 3 schemes, PM also unwrapped the criteria and guidelines for the smart cities and other schemes apart from releasing operational guidelines for the 3 urban missions, releasing logos and tag lines. Modi also stated that neither the centre nor the states will have any choice in choosing 100 cities through a competition for smart cities scheme. The launch event is to be followed by a 2 day workshop where over 1000 mayors, municipal heads, ministers concerned from states and their chief secretaries will take part.

pradyumanapte, Mumbai

29th June 2015

Comment

Right Sir,
And Uttar Pradesh is leading ready to nominate 13 cities to be developed as smart cities and 54 cities identified under the AMRUT scheme that means Uttar Pradesh will get most out of this Smart India Mission. Whereas, Tamil Nadu is placed at 2nd position with 12 Smart cities with Gujarat and karnataka. Both the states are eligible for 6 smart cities each and 31 & 21 AMRUT cities respectively. Delhi has been allotted one smart and AMRUT city.

Kunal,

29th June 2015

Good Morning Joy,
But the question is arising with it whether this will go down in the history books as just a dream or reality. Earlier, we have seen a lot of such promises but no result. As we all know that Smart cities, AMRUT and Housing for all schemes will not only ensure a shelter to every household but will guarantee transformation of their lifestyles which is crucial to overall development of the country.

Kunal,

29th June 2015

Comment

Well Kunal,
Indian have awaken and they need developments in the country. And the government has realized that they can't ignore them. And Modi Govt. is ray of hopes for them. The three big ticket projects:- Smart Cities mission, AMRUT and Housing for all are now named as Pradhan Mantri Awas Yojna (PMAY) and is worth Rs. 4 lakh crore approx.

Joydeep D,

29th June 2015

Absolutely right Joydeep,
The Smart City and AMRUT projects will draw Rs 48000 crores and Rs 50000 crores respectively, in central grants over the next 5 years. Housing for all by 2022 plan will see a government expenditure of about Rs 3 lakh crores during the next 7 years which is aimed to develop 2 crore affordable houses in urban areas for slum dwellers and people falling under Economically Weaker Sections (EWS) and Lower income Groups (LIG).

Kunal,

29th June 2015

@Kunal,
I heard that under the housing scheme, interest subsidy of 6.5% on housing loans with period upto 15 years will be provided to EWS and LIGs, offering them a benefit of about Rs. 2.3 lakhs.

And for AMRUT, 500 cities having a population of 1 lakh or more will be chosen for this project. Is there any major differences between Housing for all and AMRUT?

Joydeep D,

29th June 2015

Yes Joydeep, The AMRUT plan aims at urbanisation of 500 cities whereas the Smart Cities plan is targeted to add to the quality of life of 100 identified cities and towns which will be confirmed by superior infrastructure, smart living through smart features, better services at disposal and a clean, green and much sustainable environment for the population. Housing for all scheme will act as a perfect activator here by improving the purchasing power of EWS and LIGs by reducing their load through decreasing home loan amounts.

Kunal,

29th June 2015

Right Rubiya,
June 25, 2015 will be marked as an important month in the history of Indian development. A step forward for transforming urban infrastructure, Prime Minister Narendra Modi formally unwrap 3 mega projects- Smart City , Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and Housing for All.

Joydeep D,

29th June 2015

Comment

Good morning everybody!!!
I heard that yesterday, Cidco MD, Sanjay Bhatia gave a presentation about several projects undertaken by Navi Mumbai for its smart city plan to pass on across the country at a meeting organized by Niti Aayog in New Delhi.

pradyumanapte, Mumbai

3rd September 2015

It's true Pradyuman.....
CIDCO was the only planning authority to be invited to make a presentation on Smart City Project and gave a presentation about many projects under taken by Navi Mumbai.CIDCO itself is a planning authority and not seeking any fund for the smart city project.

Sunil Joshi, Mumbai

3rd September 2015