The government said on Tuesday that in order to spruce up the state of infrastructure in urban areas, an investment of some Rs 39 lakh cr will need to be made for the 20-year period between 2012-13 and 2031-32.
The Ministry of Housing and Urban Affairs has formed a high-powered expert committee to provide an estimate of investments required for urban infrastructure services, including the maintenance and replacement, the minister of state for housing and urban affairs, Hardeep Singh Puri, said in the Lok Sabha.
"As per the report of HPEC, the estimated urban investment requirement for the 20-year period from 2012-13 to 2031-32 is Rs 39.2 lakh cr," Puri said in a written reply to a question.
It has been estimated that nearly Rs 20 lakh cr will be needed for operation and maintenance of all cities and towns. Further, the 90 "smart cities" selected so far have indicated a total investment of Rs 1.9 lakh cr in their proposals.
The central government proposes to give financial support to the smart cities mission to the extent of Rs 48,000 cr over five years - that is Rs 100 cr per city per year for development of 100 cities throughout the year. An equal amount on a matching basis will need to be contributed by the state or urban local bodies (ULBs).
The balance funds - as required by the city as per the smart city proposal - are expected to be mobilised by the city from state or ULB's own resources through collection of user fee, beneficiary charges, impact fee, land monetisation, debt, borrowings from financial institutions including bilateral and multilateral institutes, private sector through PPP and convergence with other missions, he said.
Replying to another question, he said the government has decided to discontinue the Heritage City Development and Augmentation Yojna (HRIDAY) after it ends in November 2018.