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8 states to get Rs 8k cr for a new city each | India News

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NEW DELHI: For the first time, the Finance Commission has created the provision for an incentive grant of Rs 8,000 crore for eight states for the incubation of a new city each as a pilot. The Ministry of Housing and Urban Affairs will develop the framework for this, which will be addressed in the form of a challenge.
“We will start working on this. For several years, a new city has not developed and therefore this need was felt. We have made a political decision that all new cities should be developed on the smart city principle. It will be too early to tell if they will be totally new cities, ”said Union Secretary for Urban Affairs and Housing, Durga Shankar Mishra.
The 15th Finance Committee in its report has spoken of the need both to rejuvenate old cities and to establish new cities. He said that the challenge of establishing infrastructure in entirely new cities may be less daunting than the problem of establishing such facilities in old established cities. On the other hand, the development of totally new cities runs up against the problem of land acquisition and rehabilitation.
“Given these complexities, it is best to start on a pilot basis and therefore we recommend a performance-based challenge fund of Rs 8,000 crore to states for incubating new cities. The amount available for each new proposed city is 1 billion rupees and a state can only have one new city under the proposed scheme, “the commission said in its report.
Srikanth Viswanathan from Janagraha said: “This could be an interesting experiment to encourage states to invest in area-based development in the form of satellite cities or special economic zones or industrial cities, and help stimulate investment and job growth. , in addition to decongesting. While Rs 1 billion would not be enough to build a new city, states should see this as seed funding for an innovative company. ”
The Commission’s report has been accepted by the government. Another recommendation from the panel to set the price of water on a gradual basis, in which higher consumption implies higher charges and periodic review of charges has also been accepted at a time when the government is launching a scheme of Rs 2.64 lakh crore to provide Tap Water Connection to all houses in 4378 municipal areas by 2026.
Mishra said the program will focus on rejuvenating water bodies to increase sustainable freshwater supply and create green spaces and sponge cities to reduce flooding and enhance the value of amenities through an aquifer management plan. urban. It will also focus on meeting 20% ​​of the water demand through the reuse of treated water.

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