Financing Smart Cities in India∗
| Published date | 01 October 2016 |
| Date | 01 October 2016 |
| DOI | http://doi.org/10.1177/0019556120160405 |
| Subject Matter | Article |
FINANCING SMART CITIES IN INDIA*
V.
N.
ALOK
AND
ASHUTOSH
VASHIST
Smart cities that have been identified
in
India are big and
different from other cities partially due
to
the size and high
density
of
population which
are
relatively heterogeneous
in
terms
of
social and economic circumstances. Most
of
these
cities are regional/national hubs for knowledge or pilgrimage
and/or
economic activities. Hence, fiscal capacities
of
these cities are greater than those
of
other cities. But these
capacities
of
either the municipal or the state governments
are limited
to
generate additional resources that are needed
for
urban renewal
or
investment
in
modern infrastructure at
international standards. The article attempts
to
summarise
the policy objectives and developments
in
the identifications
of
smart cities in India and review the conventional sources
of
revenue
of
city administration, i.e. tax and non-tax revenues
and intergovernmental transfers including those
of
Union and
state finance commissions.
The
article also explores avenues
of
non-conventional sources
of
financing/or urban irifrastructures
and improvements
in
the participatory management capacities
of
the city administration which is critical
to
add value
to
residents
in
terms
of
participation
in
decision making and
quality services on sustainable basis.
INTRODUCTION
ONE HUNDRED
modem
cities enabled with latest in technology and
infrastructure was promised,
inter alia,
by
Bharatiya Janata Party (BJP),
a major national political party, in
its
election manifesto launched in April
2014. After a month, the party won the election with a clear majority
of
its
own. The BJP with the support
of
other political parties revived the National
Democratic Alliance (NDA) which formed the government under the
*An earlier version
of
the article was presented in 'BRICS Smart Cities Conference'
at Jai Mahal Hotel, Jaipur, organised by Ministry
of
External Affairs, ORF and SPUR
during August 17-19, 2016. Constructive comments from the participants are gratefully
acknowledged.
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