Union Cabinet Green Lights Modi Government’s Plan To Set Up 100 Smart Cities

The Union Cabinet has green lighted the government’s massive project to build 100 smart cities across India at a cost of Rs 48,000 crore.
Alongside PM Modi’s pet project, the cabinet also approved the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) for which it will set aside an additional Rs 50,000 crore.
Under the Smart City Mission, each of the 100 cities selected will receive funds of Rs 100 crore per year for five years, in order to setup infrastructure which will in turn drive economic growth.
“With just 0.70% of the GDP being spent on urban renewal, the return on investment (ROI) in the form of contribution is most compelling at 70% of GDP. Planning and building cities itself is a high ROI proposition,” said Pratap Padode, Founder Director, Smart Cities Council India.
AMRUT on the other hand is the ideally the Jawaharlal Nehru National Urban Renewal Mission (JNNURM), named after former Prime Minister Atal Bihari Vajpayee.
The Cabinet also approved centre funding under AMRUT to projects that were sanctioned under JNNRUM but haven’t been completed.
In order to select the 100 cities that will be turned into smart city, the central government will host a ‘City Challenge Competition’ in which each state will shortlist a certain number of smart city aspirants.
The states will then prepare smart city proposals for further evaluation for extending central support.

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