The smart cities project would have an outlay of Rs.48,000 crore, an official release said here.
The cabinet, at a meeting chaired by Prime Minister Narendra Modi, also gave its approval to the Atal Mission for Rejuvenation and Urban Transformation of 500 cities (AMRUT) with an outlay of Rs.50,000 crore.
The mission of building 100 smart cities intends to promote adoption of smart solutions for efficient use of available assets, resources and infrastructure with the objective of enhancing the quality of urban life and providing a clean and sustainable environment.
The cabinet also approved the central government spending of about Rs.1 lakh crore on urban development under two new urban missions over the next five years.
Under the Smart Cities Mission, each selected city would get central assistance of Rs.100 crore per year for five years. Smart City aspirants will be selected through a “City Challenge Competition” intended to link financing with the ability of the cities to perform to achieve the mission objectives.
Each state will shortlist a certain number of smart city aspirants as per the norms to be indicated and they will prepare smart city proposals for further evaluation for extending central support.
Special emphasis will be given to participation of citizens in prioritizing and planning urban interventions. It will be implemented through “area based” approach consisting of retrofitting, redevelopment, pan-city initiatives and development of new cities.
The focus will be on core infrastructure services like adequate and clean water supply, sanitation and solid waste management, efficient urban mobility and public transportation, affordable housing for the poor, power supply and robust IT connectivity.