287 projects in tendering stage

About 287 Smart City projects worth Rs. 14,296 crores are in tendering stage and works on-ground is expected to start very soon, a release from the Press Information Bureau said on 14 Mar 2018.

Since the launch of the Smart Cities Mission Rs. 9,939 crores has been released by Government to Smart Cities.

Against this, 753 projects worth Rs. 24,511 crores have been completed or have started work on-ground.

This is one of the fastest progress demonstrated in the urban sector considering the scale and novelty of the Smart Cities Mission, said the release.

Utilization certificate for the 2nd installment of the funds are submitted by the cities after utilization of a substantive amount of funds from the 1st installment, it explained on the funding process.

While a number of cities have started project implementation on ground their utilization certificates are awaited. Hence, utilization certificate may not be an appropriate yardstick for assessing the progress of the Mission.

Moreover, the progress depends on the date of the selection of the Smart City.

After selection, it takes around 18 months in setting up Special Purpose Vehicle (SPV), procuring Project Management Consultant (PMC) firm, hiring Human Resources, preparing Detailed Project Reports (DPRs) and then call for tenders.

For Cities selected in Round 1 (January 2016), where 18 months have lapsed, about 51% of the projects have either been tendered or are under implementation.

In Round 2 & 3, nearly all the cities have set up SPVs, a state and private sector joint venture/s for implementing projects through.

Current status:
Work completed: 243 projects; cost Rs. 4,583 crore.
Work Order Issued: 510 projects; cost Rs.19,928 crore.
Tender issued: 287 projects; cost Rs.14,296 crore.
Detailed Project Report (DPR) Approved: 60 projects; cost Rs.3,659 crore.
DPR under preparation: 1,908 projects; cost Rs.96,518 crore.

In addition, the Smart Cities are also generating funds by mobilizing internal revenue sources, public-private partnerships, value capture financing, convergence, etc.

These additional funds are also helping the cities to meet the requirement for project financing, said the release. fii-news.com