Lok Sabha Question No. 2333 (UNSTARRED), answered on 2023-08-03
Subject: Development of Infrastructure of Cities
Ministry: HOUSING AND URBAN AFFAIRS
Asked by: Sandhya Ray

## MINISTRY OF HOUSING AND URBAN AFFAIRS

## GOVERNMENT OF INDIA LOK SABHA

UNSTARRED QUESTION NO. 2333

TO BE ANSWERED ON AUGUST 03, 2023

## DEVELOPMENT OF INFRASTRUCTURE OF CITIES

## NO. 2333.  SHRIMATI SANDHYA RAY:

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

- (a) whether  private  investment  is  required  to  develop  the infrastructure of the cities and if so, the details thereof;
- (b) if  so,  whether  the  Government  proposes  any  scheme  for this purpose in near future;
- (c) whether the Government proposes for growing partnership in PPP mode for developing urban infrastructure; and
- (d) if so, the details thereof?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN AFFAIRS (SHRI KAUSHAL KISHORE)

(a)  to  (d):  Urban  infrastructure  development  is  a  State  subject. Ministry  of  Housing  and  Urban  Affairs  (MOHUA)  facilitates  and supports  States  /  Union  Territories  in  this  agenda  through  its flagship Missions / Schemes viz. Atal Mission for Rejuvenation and Urban  Transformation  (AMRUT)  2.0,  Smart  Cities  Mission  (SCM), Swachh  Bharat  Mission-Urban  (SBM-U)  2.0,  Pradhan  Mantri  Awas Yojana  -  Urban  (PMAY-U)  and  Urban  Transport  projects.  Urban infrastructure  is  financed  through  budgetary  support  and  other public  and  private  sources  of  finance,  including  public  private

- partnerships.

Public Private Partnerships as a means of financing urban infrastructure has been covered under all the Mission guidelines as indicated below:

- i. AMRUT 2.0 guidelines state that cities having population above 10 lakh are  mandated  to  take  up  10%  of  their  projects  in  Public  Private Participation (PPP) mode.
- ii. Smart Cities Mission promotes PPP projects to be undertaken in the 100 Smart  cities.  If  the  Government  of  India  funds  and  the  matching contribution by the States/Urban Local Bodies meet only a part of the project  cost,  balance  funds  are  expected  to  be  mobilized  from  other sources including PPPs.
- iii. Swachh Bharat Mission - Urban 2.0, encourages exploring the option of Public Private Partnership (PPP) mode  for development of urban infrastructure,  to  be  decided  by  the  concerned  State  Govt.  or  Urban Local Body.
- iv. Pradhan Mantri Awas Yojana - Urban (PMAY-U) 'Housing for All' Mission encourages private investment for construction of houses in Affordable housing  in  partnership  (AHP)  and  In-situ  slum  development  verticals. Affordable Rental Housing Complexes (ARHCs) was launched as a subscheme under PMAY-U on 31/07/2020 to utilize the vacant Government funded  houses  constructed  under  Jawaharlal  Nehru  National  Urban Renewal  Mission (JNNURM)  and  incentivizing  Public/Private  Entities  to leverage investment for creating affordable rental housing stock, if they have available vacant land.
5. Policy  2017  encourages  Public  Private  Partnership  for implementation  of  the  metro  rail  projects  to  leverage  both  public  and private resources, expertise and entrepreneurship. As per the policy, the state  government  desirous  of  availing  central  financial  assistance  for upcoming metro rail projects, should mandatorily explore the possibility of  having  a  Public  Private  Partnership  arrangement  in  some  form  for implementation, operation and maintenance, fare collection or any other unbundled  activities  of  the  proposed  metro  rail  project,  to  the  extent

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- v. Metro  Rail feasible.