It acknowledged that during the course of implementation, certain conditions may arise — technical constraints, financial issues, supply side challenges or even changes in the aspirations of people — which may necessitate a change in the project.
Dr Kumar V Pratap, Joint Secretary (Infrastructure, Policy and Finance), Ministry of Finance, also pointed out that the “own revenues” of urban local bodies in India, as a percent of GDP, is less than one per cent.
Housing and Urban Affairs Minister Hardeep Singh Puri said as on January 17, there were 2,948 SMart City projects worth Rs 1.38 lakh crore in various stages of implementation, while 189 projects worth Rs 2,237 crore had been completed.
The issue is not only the parachuting of consulting firms and vendors for local IT and infrastructure solutions, but that such private partnerships would necessitate a return on investments unconstrained by concerns of social equity or justice. The abolition of octroi, the once largest source of municipal revenue for many cities, has had a debilitating impact on the fiscal sovereignty of urban local bodies.