A total of 2,342 projects worth Rs 90,929 crore have been tendered under the Smart City proposal. Nearly 72 per cent of these or 1,675 projects worth Rs 51,866 crore are under implementation or have been completed, as on November 30, 2018. The pace of implementation of projects has picked up significantly during the last one year. There has been a 290 per cent increase in projects tendered, 332 per cent increase in projects grounded or completed and 479 per cent increase in projects completed since October 2017.
Weighing the overall investment scenario on this parameter, however, gave conflicting results. While the year-on-year value of new investment projects announced has been increasing over the past two quarters of 2018/19 (2.54 per cent in June 2018 and 50.5 per cent in September), the overall value of investment projects completed declined 22.7 per cent in September 2018 quarter. However, in just one year the rate of implementation (the value of projects under implementation as a per cent of total outstanding projects) shot up 3 percentage points from September 2017 to September 2018 it. CMIE predicts if this elevated level of implementation continues we could see a faster completion of projects in the near future. An important caveat to be noted -- nearly two-thirds of the increase in the implementation rate reflects a drop in the total outstanding projects, which is the denominator in the computation of the implementation rate. Only one-third of the increase in implementation rate can be attributed to the increase in actual implementation.
According to a Rajya Sabha reply by Hardeep Singh Puri, Minister of state (independent charge) of the ministry of housing and urban affairs, a total of 5,151 projects worth Rs 2,05,018 crore have been included by the selected 100 cities in their Smart City proposals. These projects are executed through convergence of resources from central, state government or local body as well as externally funded schemes or projects. It also envisages around 20 per cent of funding through Public Private Partnerships (PPPs).
As per the Smart Cities Mission guidelines, the central government plans to give a financial support to the extent of Rs 500 crore to each of the selected 100 Smart cities over the mission period (2015 to 2020). The budgetary allocation since the launch of the mission in June 2015 till the current year (2018/19) is Rs 16,604.2 crore, of which Rs 14,221.20 crore have already been released under the mission so far. As on November 1, 2018, an utilisation of Rs 3,560.22 crore has been reported by the cities, which is more than 25 per cent of the funds released till then.
It takes around 12-18 months for a selected city to set up special purpose vehicle, procure project management consultant, hire necessary human resources, call tenders and issue work orders. The implementation plan is given by each Smart City in its Smart City Proposal.