Madhya Pradesh govt approves Rs 1,800 crore to 397 smart cities infra development
Madhya Pradesh govt approves Rs 1,800 crore to 397 smart cities infra development
BHOPAL: Facing a severe financial crunch in developing smart cities across the state, the Madhya Pradesh government still has approved an investment to the tune of Rs 1,800 crore for providing basic infrastructure in 397 cities under Chief Minister Urban Infrastructure Development Plan (CMUIDP).
The funds will be utilised for improving water supply, sewerage networks, developing roads, provision of open and green spaces, community centres and public utilities in urban areas.
Initially, the government had sanctioned Rs 1,107 crore to develop small cities and towns on the lines of Smart City Project envisaged by the Ministry of Urban Development, said officials in the directorate of urban administration & development, Madhya Pradesh.
"In the first phase, which aimed at infrastructure development in 288 cities, the government had sanctioned Rs1,428 crore for basic infrastructure works. So far the results have been found satisfactory despite financial crisis but, we hope to fulfil the task," said a senior officer in the directorate.
In the second phase, the government has sanctioned funds for 397 cities and towns and also approved subsidy on investments. Besides, the government will also provide loans through the urban administration department which could be repaid in two instalments, they said.
During the first phase, the government has roped in Housing Development Corporation (HUDCO) for funding at an interest rate of 11%. Now, efforts were underway to get loans from nationalised or private banks. State government would bear 75% cost of the loan with interest, the civic body will have to bear 25% funding with interest for the development.
"Most of the municipal corporations and municipalities had initiated basic development works after the approval of first instalment. However, some of the municipal councils were not included in the first phase.
They will be sanctioned Rs 3 crore each this time for basic development works," said the officials.
