The Union Cabinet on Wednesday approved the proposal to set up 100 smart cities across the country. In addition to this, old housing projects initiated by the previous government have also been cleared.
The smart city project was formally announced in July 2014 in the current government's first Union Budget and the Centre had allocated nearly Rs 7,000 crore for the programme.
The urban centres that will be developed as smart cities will be selected through a 'City Challenge' competition later this year. States will propose the names of cities, and those will be graded on parameters like creditworthiness, power supply, water, revenue generation, municipal planning and partnerships they can form. The final selection will be done through a process of elimination.
During the first week of this month, Urban Development and Parliamentary Affairs Minister Venkaiah Naidu had said cities would be selected only on merit, not on political considerations. Michael Bloomberg, former mayor of New York, is expected to help in the selection process.
The Centre would be a facilitator in the project, the minister had added.
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