Vandana Ramnani Moneycontrol News
The Centre is unlikely to give in to Shillong’s demand for 90:10 funding pattern for its smart city plan instead of the usual 50:50. Shillong was selected in the fourth round of smart cities plan but is yet to submit its proposal.
“I am not accepting that from anyone. This is a problem I have all the time. Municipalities should be able to raise their own money, raise taxes … the Centre cannot be giving money like that,” said Union Housing and Urban Affairs Minister Hardeep Puri on the sidelines of a conference on Pradhan Mantri Awas Yojana (Urban) Housing for all by 2022 organised by FICCI on Thursday.
The demand of the Meghalaya government all along had been that the Centre should share the burden of investment by adopting the 90:10 ratio (90 percent by the Centre and 10 percent by the state). The present funding pattern for the smart city project is on a 50:50 basis between the Centre and the states.
“A new government has taken over. We are hoping that a high level ministerial meeting will be convened soon in which the smart cities issue too is likely to come up. We feel the Centre may also finally oblige us with a 90:10 funding ratio for the smart cities mission and funds will flow in thick and fast,” highly placed sources in Meghalaya said.
Puri also said that the first meeting of the apex body of Smart City Mission will be held on April 21 in Vishakapatnam.
“I have established an apex group of all the smart cities managers - all 99. The first meeting will take place in Vishakapatnam. The idea is to make them share experiences and also to involve civil society, private sector other multi-lateral financial institutions, etc. That is the idea which is in full momentum,” he said.
Commenting on the issue of utilisation certificate to be submitted to the Centre by the cities, Puri said it is not an "appropriate yardstick" to assess the progress of the Smart City Mission.
“Utilisation certificate may not be an appropriate yardstick for assessing the progress of the mission,” Puri said, adding “Utilisation certifications are submitted two years late. The smart cities were initiated in 2015. It takes typically 18 months to start the project.”
Amid some media reports suggesting that the mission was yet to pick momentum as indicated by under-utilisation of Central funds, the ministry has said projects worth Rs 24,511 crore have been completed or under implementation, and works worth Rs 14,296 crore were in tendering stage.
Many cities are yet to submit the utilisation certificate and the last date for its submission is yet to arrive. Besides, the certificate is generally submitted when the city spends a substantial amount from the first instalment and looks for further funding from the Centre. Therefore, while a number of cities have started project implementation on ground, their utilisation certificates are awaited.
A release issued by the ministry has said assessing the progress depends on the date of selection of the smart city, as it takes around 18 months for setting up a special purpose vehicle (SPV), procuring project management consultant (PMC) firm, hiring human resources and preparing detailed project reports (DPRs).
For cities selected in the first round (on January 2016), where 18 months have lapsed, about 51 percent of the projects have either been tendered or were under implementation, the release said.
Since the launch of the mission, Rs 9,939 crore has been released by the Centre to the Smart Cities. Against this, 753 projects worth Rs 24,511 crore have been completed or on-ground work has started, it said.
In addition to funds provided by the Centre, smart cities also generate funds by other means such as mobilising internal revenue sources, public-private partnerships, value capture financing, convergence. These additional funds also help cities to meet the requirement for project financing.
Further, about 287 projects worth Rs 14,296 crore were in tendering stage and the works on-ground is expected to start very soon, the release said.
Till date, 99 cities have been selected under the NDA government’s flagship program, launched by Prime Minister Narendra Modi in June 2015. Among the states, West Bengal has chosen not participate in the competition to choose smart cities. Only one city from the state – New Town – was selected when the second list was announced in September 2016 but with the state deciding to walk out of the program soon after, there is no progress on the ground.
Smart cities are meant to change the way urban India lives, smart cities will enjoy uninterrupted power and water supplies, internet connectivity, e-governance along with quality infrastructure, according to the government.
The selection of smart cities is based on the scores cities get for carrying out urban reforms in areas including sanitation and governance. Cities that score the highest will be picked for the project, to be implemented over a 10-year period.
The 100 Smart Cities Mission was launched by Prime Minister Narendra Modi on June 25, 2015. Under the mission, the Centre allocates Rs 500 crore to each of the cities for implementing projects proposed by it. This amount is matched with a grant of the same amount by the respective state.
Vandana.ramnani@nw18.com
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