Budget 2020: Five new smart cities to be developed

New Delhi, Feb 01: Finance Minister Nirmala Sitharaman has proposed the setting up five new Smart Cities. However, she did not make any mention of the Budgetary allocation.

The government in 2019 had allocated Rs 6,450 crore for the Smart Cities Mission for 2019-2020 against Rs 6,169 crore in 2018-2019, which is about 4.5 per cent more than the amount set aside last year.

Under the SCM, 100 Smart Cities have been selected in four rounds based on an all India competition. All 100 cities have incorporated Special Purpose Vehicles (SPVs).

Meanwhile, the Smart Cities Mission was launched on June 25, 2015. The first list of 20 cities announced on January 28, 2016. The fast tracklist of 13 cities was announced on May 24, 2016. The second list of 27 cities was announced on September 20, 2016. The third list of 30 cities announced on June 23, 2017, and the final list was announced in January 2018.

Under the mission, the Centre allocates Rs 500 crore to each of the cities for implementing projects proposed by it. This amount is matched with a grant of the same amount by the respective state.