Lok Sabha Question No. 3843 (UNSTARRED), answered on 2017-08-09
Subject: Foreign Funds for Smart City Mission
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: DODDAALAHALLI KEMPEGOWDA SURESH, SUSHMITA DEV, BHEEMRAO BASWANTHRAO PATIL

## GOVERNMENT OF INDIA MINISTRY OF HOUSING AND URBAN AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 3843 TO BE ANSWERED ON AUGUST 9, 2017 FOREIGN FUNDS FOR SMART CITY MISSION

No. 3843    SHRI D.K. SURESH: KUMARI SUSHMITA DEV: SHRI BHEEMRAO B. PATIL:

Will  the  Minister  of  HOUSING  AND  URBAN  AFFAIRS  be  pleased  to state:

- a) the funds received from foreign countries for the development
2. of smart cities in the country;
- b) the status report of the function of Special Purpose Vehicles
4. (SPVs) under Smart City Mission; and
- c) whether  the  SPVs  come  under  RTI  and  if  so,  the  legal provisions  through  which  SPVs  are  held  accountable  for  the grievance redressal of citizens?

## ANSWER

THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND

URBAN AFFAIRS

(RAO INDERJIT SINGH)

- (a): No  fund  has  been  received  from  foreign  countries  for  the development of smart cities in the country.

However,  World  Bank  and  Asian  Development  Bank  financial support to the extent of USD 500 million each has been sought for  Smart  City  Projects  across  country.  Additionally  JICA, Asian Infrastructure Investment Bank, New Development Bank and  French  Agency  for  Development  (AFD)  have  also  shown interest  in  financing  the  projects  under  the  Smart  Cities

Mission.

- (b): So  far, 59  cities  have  constituted  their  Special  Purpose
- Vehicles.  Para  5  of  Annexure  5  of  Smart  Cities  Mission Statement & Guidelines envisage key functions and responsibilities of SPVs which are as under:-
-  Approve  and  sanction  the  projects  including  their  technical
- appraisal.
-  Execute the Smart City Proposal (SCP) with complete operational freedom.
-  Take measures to comply with the requirements of Ministry of Housing and Urban Affairs with respect to the implementation of the Smart Cities programme.
-  Mobilize resources within timelines and take measures necessary for the mobilisation of resources.
-  Approve and act upon the reports of a third party Review and Monitoring Agency.
- 
- Overview Capacity Building activities.
-  Develop and benefit from inter-linkages of academic
- institutions and organizations.
-  Ensure timely completion of projects according to set
- timelines.
-  Undertake review of activities of the Mission including budget, implementation  of  projects,  and  preparation  of  SCP  and  coordination  with  other  Missions  /  Schemes  and  activities  of
- various ministries.
- Monitor  and  review  quality  control  related  matters  and  act
-  upon issues arising thereof.
-  Incorporate  joint  ventures  and  subsidiaries  and  enter  into Public Private Partnerships as may  be required for the implementation of the smart cities programme.
-  Enter into contracts, partnerships and service delivery arrangements  as  may  be  required  for  the  implementation  of the Smart Cities Mission.
-  Determine  and  collect  user  charges  as  authorised  by  the Urban Local Body (ULB).
-  Collect taxes, surcharges etc. as authorised by the ULB.
- (c): As per Section 2 (h) (d) of Chapter 1 of Right to Information Act 2005  (RTI),  public  authority  means  any  authority  or  body  or institution  of  self-government  established  or  constituted  by notification issued or order made by the appropriate Government, and includes any:-
- (i) Body owned, controlled or substantially financed; and
- (ii) Non-  Government  organization  substantially  financed, directly or indirectly by funds provided by the appropriate Government.

In  terms  of  Smart  Cities  Mission  Statement  &  Guidelines, Special  Purpose  Vehicle  (SPV)  will  be  a  limited  company incorporated  under  the  Companies  Act,  2013  in  which  the State/UT  and  the  ULB  will  be  the  promoters  having  50:50 equity shareholding and control of the SPV. The admissibility of  RTI  on  SPV  will  be  governed  by  the  RTI  Act,  2005  quoted above, and provisions under the Companies Act, 2013.

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