HomeNews15th Finance Commission recommends Rs 8k crore new fund for incubation of...

15th Finance Commission recommends Rs 8k crore new fund for incubation of new cities

The XV Finance Commission, in its report submitted to the Government of India, has recommended a performance-based challenge fund of ₹8,000 crore to States for incubation of new cities. The amount available for each proposed new city is ₹1,000 crore and a State can have only one new city under the proposed scheme.  Thus, a maximum of eight States can avail this grant for eight new cities over the award period of the Commission. The detailed modalities for the scheme have not been worked out. This information was given by the Minister of State in the Ministry of Housing and Urban Affairs, Shri Kaushal Kishore, in a written reply in the Rajya Sabha yesterday.

Moreover, Area Based development is a key strategic component of the Smart Cities Mission, launched on June 25, 2015. Area Based development models include city improvement (retrofitting), city renewal (redevelopment) and/or city extension (Greenfield development).  100 cities have been selected for development as Smart Cities over 4 rounds of competition conducted between January 2016 to June 2018.

Smart Cities opting for greenfield development or a combination of models

StateSmart CityABD Component
Andhra PradeshAmaravatiGreenfield
Madhya PradeshSatnaGreenfield
West BengalNew Town KolkataRetrofitting + Greenfield
MaharashtraNashikRetrofitting + Greenfield
ChhattisgarhAtal NagarRedevelopment + Greenfield


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