As per the report of a high-powered expert committee (HPEC), the estimated urban investment requirement for the 20-year period, from 2012-13 to 2031-32, is Rs 39.2 lakh crores, Housing and Urban Affairs Minister, Hardeep Singh Puri said, on January 2, 2018, in a written reply to a question in the Lok Sabha. The HPEC had been constituted, to provide an estimate of investments required for urban infrastructure services, including maintenance and replacement, the minister said.
He said nearly Rs 20 lakh crores had been estimated for operation and maintenance of all cities and towns. He said the 90 ‘smart cities’ selected so far, have indicated a total investment of Rs 1.9 lakh crores, in their proposals. The central government proposes to give financial support to the smart cities mission, to the extent of Rs 48,000 crores over five years – that is, Rs 100 crores per city per year, for the development of 100 cities throughout the year. An equal amount on a matching basis, will have to be contributed by the state or urban local bodies (ULBs).
The balance funds – as required by the city, as per the smart city proposal – are expected to be mobilised by the city, from the state or ULB’s own resources, through the collection of the user fee, beneficiary charges, impact fee, land monetisation, debt, borrowings from financial institutions including bilateral and multilateral institutes, private sector through PPP and convergence with other missions, he said.