Smart City scheme: It will be a competition for funds

Cities that have a vision and development strategy, have made progress under the Swachh Bharat Mission, make timely salary payment to municipal staff and have a mechanism to redress grievances and an e-newsletter will be eligible to take part in the Smart City Challenge, which will allow them to compete for funds under the ‘Smart City’ scheme.

At the end of a two-day consultation hosted by the Ministry of Urban Development, the States and other stakeholders to identify the parameters for choosing the cities that can compete, it was suggested that percentage points be allocated for further ranking of cities. The Ministry has clarified that cities will have to compete for the funds allocated under the scheme.

States’ suggestions
“States have suggested certain parameters that include self-financing ability, which will have a 25 per cent weightage in the selection criteria, institutional systems and capacities (25%), existing service levels and committed plan of action for three years (25%), track record in implementing reforms (15%) and quality of vision document (10%),” said an official of the Ministry.

The States have suggested two sets of reforms for small and metropolitan cities. These include land monetisation, increased FAR norms with transparent policies, quick progress towards e-governance and online service delivery, integrated GIS-based Master Plans including for sanitation, mobility, land use, digital connectivity, disaster risk management and climate change. Policy reforms, fixed tenures for Mayors and municipal officials, improving revenues through 100 per cent collection of taxes and user charges, minimum educational qualifications for corporators and their capacity-building, economic master planning for cities before physical master plans, creation of municipal cadre and credit rating have also been identified.

“The States have suggested that in addition to the PPP model, they should be given the option of EPC [Engineering Procurement Contract] and user fee-based concessions to promote private sector participation. They want to impose impact fee on organisations that benefit from improved infrastructure, government support for making projects viable for private investors, unbundling of services to make projects investment-worthy and creation of a low-cost pooled fund with the support of the Asian Development Bank, the World Bank, pension funds and sovereign funds etc.,” said the official.

Source - The Hindu