Eight cities have opted for greenfield development or a combination of models recommended by the XV Finance Commission. It may be remembered that the XV Finance Commission, in its report submitted to the Government of India, had recommended a performance based challenge fund of ₹ 8,000 crore to States for incubation of new cities.
These states/cities are:
|State||Smart City||ABD Component|
|West Bengal||New Town Kolkata||Retrofitting+Greenfield|
Interestingly, Andhra Pradesh has applied for Amaravati for Greenfield development as Smart City. The city was earlier proposed for capital of Andhra Pradesh by the erstwhile Chief Minister, Chandrababu Naidu. However, with the change in the state’s Chief Minister in 2019, Jagan Reddy took over the reigns of the state and cancelled the earlier decision. Now a new Greenfield smart city is being proposed for Amaravati.
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 are yet to be worked out.