Prime Minister Narendra Modi’s dream project to develop 100 ‘smart cities’ got the much needed boost on Thursday with the Finance Minister proposing an allocation of Rs 7,060 crore in this fiscal. It aims to accommodate the burgeoning number of people in view of increasing migration from rural to urban areas.
“The Prime Minister has a vision of developing 100 smart cities as satellite towns of larger cities and by modernising the existing mid-sized cities. With development reaching an increasingly large number of people, the pace of migration from the rural areas to the cities is increasing,” Finance Minister Arun Jaitley said while presenting the Budget for 2014-15.
To facilitate this, requirement of the built-up area and capital conditions for FDI has been slashed from 50,000 square metres to 20,000 square metres and from $10 million to $5 million, respectively with a three year post completion lock in. Also, the projects committing at least 30 per cent of the total project cost for low cost affordable housing will be exempted from minimum built up area and capitalisation requirements, with the condition of three year lock-in, as per the Budget.
For urban dwellers, under the Pooled Municipal Debt Obligation Facility for which the budgetary provision has been enhanced from Rs 5,000 crores to Rs 50,000 crores, the Government plans to focus on infrastructure, public transport, solid waste disposal, sewerage treatment and drinking water.
A Mission on low Cost Affordable Housing which will be anchored in the National Housing Bank will be allocated a sum of Rs 4000 crore this year. This is being done with a view to increase the flow of cheaper credit for affordable housing to the urban poor.
Syama Prasad Mookerjee Urban Mission in rural areas on the lines of Gujarat has also been proposed. It will include economic activities and skill development in the private public partnership mode.