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2 years after Finance panel suggested, Centre ‘evaluating’ 26 proposals for new cities

The 15th Finance Commission report for 2021-26, which was presented in Parliament on February 1, 2021, had recommended Rs 8,000 crore for “incubation” of eight new cities in the country through a challenge.

2 yrs after Finance panel suggested, Centre ‘evaluating’ 26 proposals for new cities

The ministry had set January 20 as the last date for states to submit their bids.

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2 years after Finance panel suggested, Centre ‘evaluating’ 26 proposals for new cities

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The Union Housing and Urban Affairs Ministry is evaluating 26 proposals from 21 states for creation of new cities, more than two years after the 15th Finance Commission recommended Rs 8,000 crore for the incubation of eight new cities.

The 15th Finance Commission report for 2021-26, which was presented in Parliament on February 1, 2021, had recommended Rs 8,000 crore for “incubation” of eight new cities in the country through a challenge.

Replying to a question by BJP member Darshana Singh, Minister of State for Union Housing and Urban Affairs Kaushal Kishore said in a written reply to the Rajya Sabha on Monday that the ministry had set minimum eligibility criteria and bid parameters for states competing in the challenge. The ministry had set January 20 as the last date for states to submit their bids, he said.

“Total 26 proposals from 21 states, including Uttar Pradesh, have been received by the last date. These proposals are at scrutiny and evaluation stage,” the minister stated in reply to the MP’s question on the proposals in general, and from UP in particular.

The reply said the 15th Finance Commission had allocated Rs 8,000 crore “for [a] performance-based challenge fund for incubation of eight new cities, wherein the amount available for each proposed new city is Rs 1,000 crore”.

“Considering the small urban population in the Northeast and hill States, Rs 1,000 crore for two new cities (Rs 500 crore each) for two different states has been proposed,” the minister stated in the reply. “A state can have only one new city through this fund. Thus, maximum nine new cities in nine states can be selected.”