Smart City Mission: Prime Minister Narendra Modi and his BJP led NDA government have been banking big on the flagship scheme Smart City Mission to transform the urban landscape of India. But 80 per cent of the investment granted by the central government will be utilized for 2.7 per cent of the cumulative area of 59 cities which were selected in the first phase, according to Indian Express report. According to report, Rs 1.05 lakh crore out of total Rs 1.31 lakh crore will be spent on Area Based Development (ABD) component of the 59 cities from 2015 to 2020, the report says. This ABD refers to certain pockets in the selected cities where facilities such as WiFi hotspots, sensor-based public lighting, redesign of streets, zones promoting start-ups and multi-modal transit points will be available. Now these pockets will cover 246 sq km of which is mere 2.7 per cent of the total area of 9,065 sq km, the report says. So, roughly 80 per cent of the total funds will spent for building infrastructure on 2.7 per cent of a city.
The mission was launched on June 25 in 2015 by the Centre with an aim to develop 100 smart cities across the country in a five-year period. The Urban Development Ministry would announce the next set of 40 cities by the end of this month. The central government had earmarked Rs 48,000 crore for the scheme. Notably, under the programme, each selected city will be given Rs 500 crore over a period of five years by the Centre with the respective states expected to make the matching contribution, according to PTI report.
Here key takeaways from the Area Based Development (ABD) component
PM Modi had launched the projects last year from Pune. According to report, Rs 2,196 crore of the estimated Rs 2,870 crore will be channelised into the development of a 3.6 sq km area in the Aundh-Baner-Balewadi pocket. So it means 76 per cent of the total fund will be spent on a little more than one per cent of the city’s 276 sq km.
Bhubaneswar, which was ranked number 1 contender, will witness 90 per cent of the Rs 4,537 crore will be spent on the Bhubaneswar Town Centre District. Now this area accounts for less than three per cent of the city.
In the other three cities in the top five, Jaipur, Surat and Kochi will see similar way of spending. More than 65 per cent of the funds are proposed to be spent on ABD.
Other cities such as Jabalpur, Visakhapatnam and Indore propose to spend more than 90 per cent of their funds on less than two percent of their city area.
Earlier, Urban Development Secretary Rajiv Gauba had said that the Mission help in economic growth. He had said that the Smart City Mission means incorporating smart technologies for the current cities.