When Smart Cities Mission was launched on 25 June 2015 a competitive, challenge process was used to select the 100 Smart Cities. Now, the Challenge process is being applied to project implementation, in line with the NITI Aayog guideline where under the Indo-French partnership program, at least 15 projects would be selected through an All-India Challenge. The projects would be in four sectors- Sustainable Mobility, Public Open Spaces, Urban governance & ICT and Social and Organizational Innovation in low-income settlements. The duration of the program will be three years (FY2018-19 to FY2020- 21).
A Loan of EUR 100 million would be extended by AFD to selected CITIIS projects in the form of grant. The repayment of the principle and interest would be equally shared by the Central Government and State Government on 50:50 basis. Each awarded CITIIS project will benefit from a grant ranging from INR 20 Cr. to INR 80 Cr (max project outlay: 160 crore). The CITIIS grant is expected to cover from minimum 50% up to 80% of the project cost subject to a maximum of INR 80 Cr. and additional funding amounting to least 20% to be secured by the awarded cities through its own resources.
In addition, EUR 6 million would be given as grant to be shared between the SPVs of the Smart Cities, State Governments and Ministry of Housing and Urban Affairs for capacity building activities. The National institute of Urban Affairs would conduct the Challenge process for selection of projects under the Indo-French partnership.
The financial support and foreign technical assistance will help Smart Cities to access World Class expertise for selected innovative projects. It also intends to improve peer learning activities & cooperation within the smart cities and enhance the knowledge both at the State and National Level.
