How Govt Is Deploying Its Cash To Push Infra
The M Venkaiah Nadu-led Urban Development Ministry is leaving no stone unturned to unlock the true potential of India cities. While his ministry launched a number of urban developed schemes in the past two years, it is now focusing on its faster implementation.
A look at the progress Naidu's ministry has made so far in making its urban dream come true:
The ministry has already utilised 70 per cent of the funds allocated for the financial year 2016-17 on new urban missions launched last year. A speedy implementation of these schemes is behind this mammoth spending. Eighty-five cities have been chosen for launching a credit rating system for their urban-local bodies (ULBS) . The process for this has already been completed in 12 cities. In fact, the Ahmedabad Municipal Corporation and the New Delhi Municipal Council have already secured an A-rating. All the 85 cities would be given credit rating by March next year. This move is aimed at increasing ULBs participation in the planning and implementation process.The ministry has directed officials to ensure that all ULBs get credit rating at the earliest, which is necessary to float municipal bonds for mobilising resources. In fact, Pune and Ahmedabad are in the advanced stage of launching municipal bonds. Such a move will help cash-hit municipal bodies to generate revenue.For the speedy execution of new projects, the ministry will be taking the help of various domestic and global lending agencies. These includes the Asian Infrastructure Investment Bank, the Asian Development Bank, the Japanese International Cooperation Agency, the BRICS Bank and AFD Group. For instance, government-owned Housing and Urban Development Corporation (Hudco) is likely to support the Smart City Mission with Rs 10,000-crore assistance.In addition to 68 projects that were launched in 14 smart cities in June this year, another 134 projects have been identified. On the other hand, while the first batch of all 20 smart cities have set up Special Purpose Vehicles (SPVs) , the 13 cities identified under Fast-Track Competition would do so by September-end.