smart city

A turn on mega projects worth Rs. 4 lakh crore are for developing smart cities and towns to provide “Housing for All” for next seven years besides all the proposed amendments in real estate rules which was marked for the year 2015 in the urban development sector.

The central government has also approved many amendments in the Real Estate Bill, 2015 (Regulation and Development); with various provisions for depositing 70 percent of the real estate projects cost by the real estate builders into escrow account and fine or punishment for violations of the proposed real estate laws. However; the main aim of amendments is to protect the interest of the buyers and encourage the investors and buyers to show more interest in the real estate market by ensuring transparency. Apart from that the other major reform was to introduce the allocation of central assistance to the Union Territories and States based on the number of statutory urban local bodies and the total urban population besides slum dwellers and number of urban poor in each state.

However; the allotment of the bungalow of late President A P J Abdul Kalam, which is located at 10 Rajaji Marg to Mahesh Sharma, Tourism and Culture Minister was also created a lot of controversy through the efforts of Aam Aadmi Party as AAP was criticizing the move. Apart from that Aam Aadmi Party also demanded that the bungalow of late President A P J Abdul Kalam after his term as President which was ended in 2007 should be converted into a knowledge centre. But M Venkaiah Naidu, Urban Development and Housing & Urban Poverty Alleviation Minister defended the move and allotment of the bungalow by saying that allocation was made as per previous rules and regulations and the the central government had already decided to set up a memorial in memory of late President A P J Abdul Kalam at his native place of Rameswaram in Tamil Nadu.

Ambitious Housing Schemes of Modi Government:

PM Modi, launched his most ambitious schemes such as; AMRUT (Atal Mission for Rejuvenation and Urban Transformation), PMAY (Prime Minister’s Awas Yojana) and Smart City Mission on the June 2015 with a call to promote the planning and development in the country to set of new beginning in urban regions, which could be the key drivers in the economic growth of country. According to reports, 100 smart cities will come in existence in next five years, more than 500 cities will be developed under AMRUT scheme and PMAY scheme will aims to construct two crore houses in urban areas in the duration of next seven years under “Housing for All” scheme. While summing up new initiatives, Naidu told PTI; “Year 2015 is very significant the sense as we have set up urban planning in the country under many new different schemes. However; considering the provisions under AMRUT, Housing Mission and Smart City Mission there are new conscience on the part of urban local bodies which could be for effective for planning and execution”.

The introduction of competition for selection of Smart Cities Mission is first of its kind in the allocation of resources and funds. Apart from that government is also taking the consultation for prioritization and planning of the projects from normal citizens at city level and it is mandatory under the new urban initiative which is launched in 2015.

Smart Cities Mission

Last week, PM Narendra Modi, has unveiled the top three mega flagship urban schemes under smart cities mission with a aim to develop these cities with much higher growth rate than ever. While launching AMRUT (Atal Mission for Rejuvenation and Urban Transformation) and Smart Cities Mission, and Housing for All, he state that Urbanization should be viewed as the opportunity and urban centers should be viewed as growth engines.

However; experts from industry also welcome the decision and appreciate the PM in positive way. Ratan, a Leader from Government and Public Sector, PW India stated that Launch of Smart City Mission comes with a time where government, private and public sector is looking for the balanced growth with the combination of higher standards of living and creating the multiple resources in much efficient way. These ambitious projects need adequate capacity as well as innovative implementation solution in all over the cities at administration level. It could be the more positive step towards the construction of inclusive and sustainable inclusive urbanization story for India.

Details about Smart Cities Mission and AMRUT:

The AMRUT and Smart Cities Mission will draw Rs 50,000 crores and Rs 48,000 crores respectively as central grants for next three to five years. However; “Housing for all by 2022” mission will need the government expenditure of about Rs 3 lakh crores for the period of 5 to 7 years and it aimed to construct more than 2 crore affordable houses in urban region only for slum dwellers and these people who are falling under EWS (Economically Weaker Sections) and LIG (Lower income Groups). Under these housing schemes the interest subsidy will be 6.5 percent on the housing loan for the period of 15 years and it will be available for EWS and LIGs (it will provide them benefit of 2.3 lakhs). For AMRUT, more than 500 cities which have a population of 1 lakh or more will come under the project. However; on the major effect of these plans, Praveen Tyagi, CMD of VVIP states stated that the AMRUT plan will help in the urbanization of 500 cities whereas; the Smart Cities Mission will enhance the quality of life in particular cities and towns by developing the superior infrastructure for smart living through different features such as; green and much sustainable environment, less populated areas, better services at disposal and a clean and more. And Housing for all by 2022 scheme will act as the perfect catalyst as it is able to enhance the purchasing power of LIG and EWS by reducing the burden of loan interest rates.

Recently, PM emphasized on the new towns and cities which needs to witness the integrated infrastructural development. However; Anil Chaudhry, who is Country president & MD of Schneider Electric India stated that to support the growing population of our country and provide housing for all in different cities and town we need to have sustainable projects. In this aspect we need to have water management, transport facility, building management and energy efficiency for smart living and these factors will play an important role in the Government’s vision. Under  AMRUT scheme, 500 cities will get development and under Smart Cities Mission 100 cities will get development in next five years, however;  under the Housing for All scheme there will be construction of more than 2 crore houses in urban region in next seven years.

For infrastructure development, smart cities will get selected through competitions while 500 cities will be identified under AMRUT scheme.