Adding to the Centre’s Smart City Mission, Madhya Pradesh (MP) government has allocated about Rs 700 crore to develop seven cities including Bhopal, announced by the finance minister of MP.
Reportedly in the last fiscal, Indore, Bhopal and Jabalpur received around Rs 250 crore for smart city development. With the recent announcement, the total fund is increased to approximately Rs 3,000 crore in Bhopal and Indore.
The plan is to raise 80 per cent of funds by the respective smart city development corporation. Furthermore, Union government will provide help of Rs 500 crore for Smart City – Special Purpose Vehicles (SPVs). With this process, each smart city project will receive around 1,000 crore funding in the next five years in order to develop pan-city programme and one area development programme.
The first phase of the mission is dedicated to three cities – Bhopal, Indore and Jabalpur. Gwalior and Ujjain are scheduled to be developed in the second phase whereas Sagar and Satna are in the third phase.
Under the smart city mission, the plan is to improve core infrastructure, enhance life standard, maintain the clean and sustainable environment and provide smart solutions. For the Metro rail in Bhopal and Indore, the smart city corporation is waiting for the approval from the Union government. Reportedly, the initial amount of Rs 453 crore was already allocated for Metro rail.
As per the new proposal decided for the Metro rail development, the state government and the Union government agreed to invest with 40 per cent equity contribution. MP government is in talks with European Investment Bank and ADB to raise fund for two proposals worth Rs 15,000 crore.
Source: ET Realty