The government proposed an allocation of Rs. 7,060 crore in this financial year for developing 100 ‘smart cities’ in the country.
“The Prime Minister has a vision of developing 100 smart cities as satellite towns of larger cities and by modernising the existing mid-sized cities. With development reaching an increasingly large number of people, the pace of migration from the rural areas to the cities is increasing,” Finance Minister Arun Jaitley said while presenting the Budget for 2014-15.
The new cities should be developed to accommodate the burgeoning number of people, otherwise, the existing cities would soon become unlivable, he added.
“To encourage development of smart cities, requirement of the built-up area and capital conditions for FDI is being reduced from 50,000 square metres to 20,000 square metres and from USD 10 million to USD 5 million, respectively with a three year post completion lock in,” the Minister said.
He added that projects committing at least 30 percent of the total project cost for low cost affordable housing, will be exempted from minimum built up area and capitalisation requirements, with the condition of three year lock-in.