Special purpose vehicles for at least 20 smart cities

Q: Yes, and the SPVs will be floated by January 2016 to give a boost to prime minister Narendra Modi's favorite smart cities initiative.

Suresh,

13th August 2015

Real estate News in Mumbai

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Replies (5)

for latest info check www.indiasmartcities.com

praveen, Hyderabad

29th October 2015

Comment

Hi Praveen,
Have you heard the latest news on smart cities. France has committed to invest over 2 billion euros for Smart City projects in India with special focus on Chandigarh, Nagpur and Puducherry. French ambassador in India has committed.

Sishir,

5th November 2015

Hi folks!!!!
We all know that the government has recently identified 98 cities for the Smart City Project. 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.

Shrikant Kejriwal, Mumbai

15th September 2015

Comment

I agree with you Shrikant 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 centre 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.

Yogendra, Bangalore

15th September 2015

"Thoda Khaye But Achcha Khaye" .....Sarkar ko ish trah sochna chaiye

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.

Shrikant Kejriwal, Mumbai

15th September 2015

Nice thought Shrikant..... .. "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 involved like the center, states, local bodies and private entities, the task would be even more challenging.

Suraj Kalled, Pune

15th September 2015

Right Daniel.........but the only excusion would be Amaravati whose implementation would be done by the Capital Area Region Development Authority. The authority would also double up as SPV with involvement from both Krishna and Guntur districts local bodies that have organized 33000 acres land for building the state capital on Krishna river front.

Siddharth Bharadwaj, Hyderabad

13th August 2015

Comment

@Siddharth,
For development of the smart cities project, countries like the US, Canada, Japan, China, France, Germany and the Netherlands have been short-listed as potential partners.

Bala Subramanium, Bangalore

13th August 2015

Hey Pranab and Daniel.
I heard that probably, Modi Govt. will start the " Smart Cities" campaign by starting work at "Amravati" the new capital of Andhra Pradesh by year-end. By "Vijaya Dashami" or "Deepawali", Modi is likely to fly down to "Amaravati" for on-site inspection and formally announce launch of work on the new Andhra capital city. Is it true?

Yogendra, Bangalore

13th August 2015

Comment

True Yogendra,
The prime minister's office has sent an consultant to state chief secretaries for floating the SPVs in time to allow the centre transfer first part payment of Rs 100 crore to each of them as seed fund.

Chief ministers and state governments have been given complete authority to design their SPVs for executing smart cities plan.

Daniel, Noida

13th August 2015

Yes, and it will be 50:50 joint ventures between state governments and local bodies like municipalities and city corporations while the centre would offer Rs 100 crore annually to build smart cities in every state.

Pranab Malakar,

13th August 2015

Comment

Hi Pranab,
But the center has politely declined suggestions of some chief ministers for taking support against the funds movement in the "smart cities" initiative.

Instead of that, it has chosen involving private and public trusts that would add value to the "smart cities" preposition by bringing in theme based technologies, innovation, best global practices and global community living methodologies.

Daniel, Noida

13th August 2015