The 15th Finance Commission, in its latest report to the Centre, has recommended a performance-based challenge fund of Rs 8,000 crore to states for incubation of new cities.
The amount available for each proposed new city is Rs 1,000 crore and a state can have only one new city under the proposed scheme.
Kaushal Kishore, minister of state, housing and urban affairs ministry, shared this information in a written reply in the Rajya Sabha today.
A total of eight states can avail of this grant for eight new cities over the award period of the commission. "The detailed modalities for the scheme have not been worked out," a ministry of housing and urban affairs statement said.
It says the area-based development is a key strategic component of the Smart Cities Mission, which was launched on June 25, 2015.
Area-based development models include city improvement (retrofitting), city renewal (redevelopment) and city extension (greenfield development).
A total of 100 cities have been selected for development as 'smart cities' over four rounds of competition conducted between January 2016 to June 2018.
The smart cities that have opted for greenfield development or a combination of models are Jharkhand (Ranchi), Maharashtra (Aurangabad), Gujarat (Rajkot), Andhra Pradesh (Amravati), Madhya Pradesh (Satna), West Bengal (New Town Kolkata), Maharashtra (Nashik) and Chhattisgarh (Atal Nagar).
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