Naidu reviews progress of urban development schemes

Speed Post News Network

New Delhi:  Speedy implementation of new urban missions launched last year has resulted in the Union Urban Development ministry spending 70% of plan funds for 2016-17 during the last five months of the current financial year. This was revealed during a review of progress under different missions made by Urban Development minister M Venkaiah Naidu on Tuesday.

Under the initiative of Credit Rating of urban local bodies, 85 cities have launched the process and the same has been completed in respect of 12, according to a PIB release. Ahmedabad Municipal Corporation and New Delhi Municipal Council (NDMC) have got A^{– –}rating (positive credit worthy). All these 85 cities would be given credit rating by March next year. Pune and Ahmedabad are in advanced stage of going for municipal bonds, according to the PIB release. Naidu directed the officials to follow up with States and Urban Local Bodies (ULBs) on a  regular basis to ensure that all ULBs get credit rating at the earliest which is necessary to float municipal bonds for mobilizing resources.

As a part of handholding the states and ULBs for speedy execution of projects under new initiatives, the ministry of Urban Development has identified substantial sources of resources from various domestic and multi-lateral lending agencies. They include Asian Infrastructure Investment Bank- US $ 5 billion, Asian Development Bank- US $ 1 billion, Japanese International Cooperation Agency- US $ 500 million, BRICS Bank- US $ 500 million per city, AFD-Euro 100-200 million. HUDCO is likely to support Smart City Mission with Rs 10,000 crore.  The Minister was informed that in addition to 68 projects that were launched in 14 smart cities in June this year, another 134 projects have been identified of which 114 projects are under bidding. While the first batch of all 20 smart cities have set up Special Purpose Vehicles, the 13 cities identified under Fast Track Competition would do so by the end of this month.