Smart cities to attract over Rs 2-lakh cr investments: Venkaiah Naidu

A minimum investment of Rs 2 lakh crore will flow in over the next five years for development of urban areas across the country, with nearly half the amount coming in from state and local bodies, Union Minister Venkaiah Naidu said today. 

The Union Cabinet yesterday approved the government's flagship 100 smart cities project and the new urban renewal mission with a total outlay of about Rs 1 lakh crore. 

"A minimum investment of over Rs 2 lakh crore would flow into urban areas over the next five years since states and local bodies would mobilise matching resources ranging from 50-66 per cent," Naidu said today.

The Minister for Urban Development and Housing further said the initiative would help make the urban life confortable given the large-scale migration taking place from rural areas. 

"Urbanisation is a reality and you can't reverse it. People are migrating from rural areas because of five needs, education, entertainment, employment, economic opportunities and enhanced healthcare, which are mostly concentrated in urban areas. So we have to make urban life comfortable and liveable and useful to people...," Naidu said.

Urban areas have issues like pollution, congestions, encroachments and urban governance is in a mess. "We have to think in terms of rejuvenation of our urban areas and bring back the governance," he added.

"The smart cities are the flavour of the season. To make smart cities you need smart leadership," Naidu said while delivering the keynote address in a session at 'National Leadership Conclave' organised by All India Management Association. 

The Cabinet had approved Smart Cities Mission and Atal Mission for Rejuvenation and Urban Transformation yesterday. 

Smart cities intends to promote adoption of smart solutions for efficient use of assets, resources and infrastructure with the objective of enhancing the urban life and providing a clean and sustainable environment, Naidu said. 

"While a number of countries have expressed interest in developing the cities, no plan would be made without people participation and consent," he added.

In addition, substantial private investments would be mobilised by states and urban local bodies through PPP model as required to meet the project costs, he added.

Union cabinet had yesterday given nod to government's flagship 100 smart cities project and the new urban renewal mission with a total outlay of about Rs 1 lakh crore. 

Replying to a question on the passage of the Real Estate (Amendment) Bill, Naidu said: "We do not have majority...I am talking to people, but it is important that the real estate development bill should be passed as soon as possible. The government is trying for this...We will take it forward in the coming days." 


SOURCE: The Economic Times