Lok Sabha Question No. 318 (UNSTARRED), answered on 2019-02-05
Subject: Smart City Mission
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: ANANDRAO  ADSUL, DHARMENDRA YADAV, PRITAM GOPINATH MUNDE, VINAYAK BHAURAO RAUT, SHRIKANT EKNATH SHINDE

## GOVERNMENT OF INDIA

## MINISTRY OF HOUSING & URBAN AFFAIRS

## LOK SABHA

## UNSTARRED QUESTION NO. 318

TO BE ANSWERED ON FEBRUARY 5, 2019

## SMART CITY MISSION

No. 318. SHRI ANANDRAO ADSUL:

SHRI DHARMENDRA YADAV:

DR. PRITAM GOPINATH MUNDE:

SHRI VINAYAK BHAURAO RAUT:

DR. SHRIKANT EKNATH SHINDE:

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

- (a) whether  the  duration  of  Smart  City  Mission  is  five  years starting from 2015-16 and if so, the facts thereof;
- (b) whether it is a fact that 70 per cent of the identified projects under the Smart City Mission are still at the stage of preparation  of  Detailed  Project  Report  and  if  so,  the  reasons
- for the delay;
- (c) the  manner  in  which  the  Government  would  be  able  to complete its mission with this pace of progress;
- (d) whether the State Governments have failed to provide matching  contribution  for  implementation  of  projects  under Smart City Mission and if so, the reasons therefor;
- (e) whether  the  State  Governments  have  requested  the  Union Government to increase the percentage of the central contribution for Smart City Mission;
- (f)
- if so, the reaction of the Union Government thereto; and
- (g) the  steps  taken  by  the  Union  Government  to  complete  the
- Smart City Mission within the stipulated time?

## ANSWER

THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF HOUSING AND URBAN AFFAIRS (SHRI HARDEEP SINGH PURI)

(a): Yes, Madam.  The Smart Cities Mission covers 100 cities and its duration is five years (2015-16 to 2019-20). The Mission may be

continued thereafter in the light of an evaluation to be done by the Ministry of Housing & Urban Affairs (MoHUA) and incorporating the learnings into the Mission.

(b):   No, madam. A total of 5,151 projects have been proposed by 100  Smart  cities in their Smart  City Proposals  (SCPs)  at an estimated  cost  of  Rs.  2,05,018  crore.  Tenders  have  already  been issued for 2,748 projects worth around Rs. 1,04,964 crore. Of these, work orders have been issued for 2,032 projects worth Rs. 62,295 crore,  which  are  under  implementation  or  have  been  completed. There has been an increase of 327% in the projects grounded since December 2017.

(c): The implementation of the Mission is being done by a city-level Special Purpose Vehicle (SPV), which is a limited company incorporated  under  the  Companies'  Act,  2013.  After  selection,  it takes  around  12-18  months  for  a  city  to  incorporate  SPV,  appoint Project Management  Consultant (PMC), hire necessary  human resources, call tenders and award work. All 100 cities have formed Special  Purpose  Vehicles  (SPVs),  99  cities  have  engaged  Project Management Consultants (PMCs) and all 100 cities have constituted their City Level Advisory Forums (CLAFs).

The  pace  of  implementation  of  projects  has  picked  up significantly  during  the  last  one  year.  There  has  been  a  309% increase in projects tendered, 327% increase in projects grounded and 489% increase in projects completed since December 2017.

The implementation plan is given by each Smart City in its  Smart  City  Proposal  (SCP).  The  timeline  for  completion  of projects is given below:

- Round 1 cities- 2020-21
- Round 2 cities- 2021-22
- Round 3 cities- 2022-23
- Round 4 cities- 2022-23

(d) to (f) : The Central Government shall give financial support to the extent of Rs. 500 crore to each of the selected Smart cities over the Mission period and an equal amount, on a matching basis, is to be contributed  by  the  State/Urban  Local  Body  (ULB).  Many  State governments have provided matching share or are in the process of doing  so.  Requests  for  change  in  funding  pattern  between  Central and State government from 50:50 to 90:10 have been received for

North-Eastern  States  (Arunachal  Pradesh,  Assam,  Meghalaya  and Nagaland)  and  Hilly  States  (Jammu  &  Kashmir,  Himachal  Pradesh and Uttarakhand).

Ministry  has  responded  by  informing  that  the  Smart  Cities Mission marks a paradigm shift in urban development and there is no sharing  pattern  in  Smart  Cities  Mission  as  in  other  Government Missions/Programmes.   The  States  and  Urban  Local  Bodies  (ULBs) have an equal (50:50) shareholding in the Special Purpose Vehicle (SPV).  While the Central Government funds may be used by the ULB as its share in the equity of the SPV, the State Government has to contribute  its  share  to  the  SPV's  equity.  The  financial  pattern  of 90:10  seems  applicable  in  those  Schemes  in  which  the  cost  of projects is quantified, while in the case of Smart Cities Mission, the financial  support to be provided by the Government of India is not directly linked to the cost of any project.

(g): The  Ministry  is  regularly  interacting  with  the  States/Smart cities  through  video  conferences,  review  meetings,  field  visits, regional workshops etc. at various levels to assess the performance of the cities and to handhold them for improving the same. Besides the guidance of domain  experts participating in the regional Workshops,  cities  also  benefit  from  peer-to-peer  learning  during various interactions.

At  the  national  level,  the  implementation  of  Smart  Cities Mission  is  being  monitored  by  an  Apex  Committee  headed  by Secretary,  Ministry  of  Housing  and  Urban  Affairs.   At  State  level, State level High Powered Steering Committee (HPSC) chaired by the Chief Secretary has been established. A Smart City Advisory Forum at  the  city  level  comprising  of  District  Collector,  MP(s),  MLA(s), Mayor,  CEO  of  SPV,  local  youths,  technical  experts  etc.  has  been constituted  in  each  Smart  City  to  advise  and  enable  collaboration among various stakeholders as per Smart city guidelines. Besides, Ministry  of  Housing  and  Urban  Affairs  nominee  Directors  on  the Boards of SPVs are also monitoring the progress in respective cities on a regular basis.

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