Lok Sabha Question No. 2377 (UNSTARRED), answered on 2018-01-02
Subject: Funds for Urban Infrastructure
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: SAKSHI SWAMI MAHARAJ

## O.I.H GOVERNMENT OF INDIA

## MINISTRY OF HOUSING AND URBAN AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. †2377 TO BE ANSWERED ON JANUARY 02, 2018

## FUNDS FOR URBAN INFRASTRUCTURE

No. †2377. DR. SWAMI SAKSHIJI MAHARAJ:

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

- (a) Whether Rs. 40 lakh crore is required for the development of urban infrastructure  and  Rs.  20  lakh  crore  for  the  maintenance  of  these cities  in  the  country  in  the  coming  decades  and  if  so,  the  details thereof;
- (b) Whether the Government has estimated an infrastructure expenditure
- of Rs. 6.8 lakh crore only for smart city projects; and
- (c) Whether the proposed allocation of Rs. 48,000 crore is insufficient for the ambitious smart city construction work and if so, the reaction of the Government thereto?

## ANSWER

THE MINISTER OF STATE (INDEPENDENT CHARGE) OF

MINISTRY OF HOUSING AND URBAN AFFAIRS

(SHRI HARDEEP SINGH PURI)

- (a) The  Ministry  of  Housing  and  Urban  Affairs  constituted  a  High Powered  Expert  Committee  (HPEC)  to  provide  an  estimate  of investment requirement for Urban Infrastructure Services including  the  maintenance  &  replacement  required  on  a  cycle basis.  As per the report of HPEC, the estimated urban investment requirement for the 20-year period  from 2012-13 to 2031-32 is Rs.
- 39.2 lakh crore, the breakup of which is given  below:

Cond…/-

| S.No   | Sector                         |   Investment Estimate (Rs. Lakh) |
|--------|--------------------------------|----------------------------------|
| 1.     | Water Supply                   |                           320908 |
| 2      | Sewerage                       |                           242688 |
| 3      | SWM                            |                            48582 |
| 4      | Storm Water Drains             |                           191031 |
| 5      | Urban Roads                    |                          1728941 |
| 6      | Mass Transit                   |                           449426 |
| 7      | Street Lighting                |                            18580 |
| 8      | Traffic Support Infrastructure |                            97985 |
| 9      | Renewal and redevelopment      |                           408955 |
| 10     | Other sectors                  |                           309815 |
|        | Total                          |                          3918670 |

*Source HPEC Report,2012

About  Rs.20  Lakh  crore  has  been  estimated  for  operation  and maintenance of all the cities and towns.

- (b) 90 Smart Cities selected so far, have indicated total investment of Rs.1,91,155 crore in their Smart City Proposals (SCPs).
- (c) Under Smart Cities Mission, the Central Government proposes to give financial support to the Mission to the extent of Rs. 48,000 crore  over  five  years  i.e.  Rs.100  crore  per  city  per  year  for development  of  100  cities  throughout  the  country.  An  equal amount on a matching basis will have to be contributed by the State/Urban Local Bodies (ULBs). The balance funds as required by  the  city  as  per  the  Smart  City  proposal  are  expected  to  be mobilized by the city from State's/ ULB's own resources through collection  of  user  fee,  beneficiary  charges,  impact  fee,  land monetization, debt, borrowings from financial institutions

Contd../-

including  bilateral  as  well  as  multilateral  institutions,  private sector through PPPs and convergence with other Missions etc.

To bridge the gap between Government (Government of India and State) assistance and requirement of cities, the Ministry of Housing and Urban Affairs (MoHUA) is taking following steps:

-  Assisting  cities  to  maximize  internal  sources  of  revenue such as Property Tax, Advertisement Tax etc.
-  Facilitating implementation of various projects under convergence  with  other  schemes  such  as  Solar  Rooftop, Integrated Power Development Scheme (IPDS) etc.
-  Handholding cities to access the bond markets and prepare Public  Private  Partnership  projects  for  accessing  private funds, etc.
-  Supporting for Multilateral and Bilateral assistance, providing support.

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