Urban Schemes Expenditure Surges Since 2014: Housing Minister

CITIIS 2.0 will complement the Smart Cities Mission and converge with the Swachh Bharat Mission to enable innovation throughout the value chain of waste management in our cities”, said Shri Hardeep Singh Puri, Minister of Housing & Urban Affairs and Petroleum & Natural Gas. Speaking at the launch of CITIIS 2.0 Challenge, he noted that the programme also aims to tie up with the Gobar Dhan mission to generate bio-fuels from organic waste. He urged all 100 Smart Cities under the Smart Cities Mission to apply for the challenge and assured them of the full support and guidance of the Ministry of Housing and Urban Affairs.

CITIIS 2.0 was approved by the Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, on 31 May 2023. The CITIIS 2.0 Challenge was launched by Union Minister Shri Hardeep Singh Puri here today i.e. on 16 November 2023. H.E. Shri Hervé Delphin, Ambassador of the European Union to India, and Shri Manoj Joshi, Secretary, Ministry of Housing and Urban Affairs (MoHUA) also attended the event.

The Minister thanked the international partners who have supported the CITIIS programme and the Smart Cities Mission. The total funding for CITIIS 2.0 includes a loan of Rs. 1,760 crores, or EUR 200 million, from AFD and KfW (EUR 100 million each). The programme will also receive a technical assistance grant of Rs. 106 crores (EUR 12 million) from the EU.

Addressing the gathering, Shri Puri highlighted the achievements of CITIIS 1.0, which include introduction of over 1,000 new electric vehicles; development of over 100 kilometers of non-motorized transport corridors; creation of over 750 acres of green open spaces; and construction of 1,400 affordable housing units; operationalization of  350 educational facilities and 51 health facilities. The CITIIS project in Hubballi-Dharwad won the Smart City Award–2022 under the Innovation category from the Hon’ble President of India recently, the Minister noted.

Drawing attention to the increased focus of Government on growth and development of Urbanization sector in India, Shri Hardeep Singh Puri said that the country is now undertaking the world’s largest planned urbanisation programme in the world. Since 2014, he highlighted that the total investments in urban development have risen 10-fold to more than 18 lakh crores in comparison to the 10-year period between 2004 and 2014.

Speaking about the efforts of government towards achieving circular economy in country’s urban areas, the Minister noted that, under the Swachh Bharat Mission, we have already set up 112 bio-methanation plants, 2,391 waste-to-compost plants, 55 waste-to-energy plants, 2,281 material recovery facilities, 972 construction and demolition waste management plants, and 335 solid and liquid resource management plants. “AMRUT and AMRUT 2.0 have made transformational progress in making our cities water secure. SBM-U 2.0 will make our cities garbage free and remediate all legacy waste in the country”, he added further.

CITIIS 2.0:

CITIIS 2.0 is a significant step in the direction of achieving India’s commitments to combating the challenges posed by climate change. During COP26 to the United Nations Framework Convention on Climate Change (UNFCCC) held in Glasgow in November 2021, the Prime Minister, Shri Narendra Modi presented the five nectar elements (Panchamrit) of India’s climate actions, including achieving the target of net zero emissions by 2070. Furthering this vision, MoHUA has also undertaken varied measures to address climate change through its ongoing missions, including the Smart Cities Mission, Swachh Bharat Mission, AMRUT and Urban Transport, among others. CITIIS 2.0 program envisages to supplement such climate initiatives of the Government of India and MoHUA through its unique model of action at all three levels of the government.

CITIIS 2.0 is the second phase of the City Investments To Innovate, Integrate and Sustain (CITIIS) program. It has been conceived by MoHUA in collaboration with the French Development Agency (AFD), KfW Development Bank, the European Union and the National Institute of Urban Affairs (NIUA) with the aim to:

1. Drive investments into urban climate action through competitively selected projects promoting a circular economy with focus on integrated waste management.
2. Foster climate-sensitive planning and action in states and cities through evidence-driven approaches.
3. Build institutional mechanisms, leverage partnerships and anchor capacity building for all urban local bodies in India.

CITIIS 2.0 will be funded through an external funding of INR 1,866 crore (EUR 212 million). This includes a loan of EUR 100 million each from AFD and KfW, i.e., a total loan of INR 1,760 crore (EUR 200 million), and a technical assistance grant of INR 106 crore (EUR 12 million) from EU. The program will be managed by the CITIIS Program Management Unit at NIUA.

All 100 SPVs under the Smart Cities Mission are eligible to seek assistance under CITIIS 2.0 program. Up to 18 innovative projects promoting circular economy with a focus on integrated waste management shall be selected for assistance. The CITIIS grant amount for each project under will be limited to 80% of the total project cost, up to INR 135 Crore (90% of the total project cost, in the case of North-Eastern and Hill States). The additional funds, i.e., 20% of the total project cost will be mobilised by the selected city through own source funding by the State/ Local Governments (10% of the total project cost, in case of North-Eastern and Hill States).

Smart City SPVs will be required to submit their applications through the CITIIS Management Platform (CMP) by 28 February 2024.