The Union Housing and Urban Affairs Ministry has received 28 proposals from 23 states for incubation of new cities, which are currently with the competent authority for examination, the Lok Sabha was informed on Thursday. In February 2021, the ministry announced that the central government would develop eight new cities to meet the demand for expansion of urban areas.
The 15th Finance Commission, set up by the government, has recommended an outlay of Rs 8,000 crore for developing new eight cities in eight states. A state may have only one new city through this fund.
In a written response to a question, Union Minister of State for Housing and Urban Affairs Tokhan Sahu said that the amount available for each proposed new city is Rs 1,000 crore.
In line with the recommendations of 15th Finance Commission, the HUA ministry constituted an expert committee (EC) for finalisation of bid parameters for incubation of new cities, the minister said.
The committee finalised minimum eligibility conditions and bid parameters, and a Request for Proposal (RfP) was circulated to all states. The ministry received 26 proposals from 21 states up to the last date, Sahu said in the written reply.
“Due to non-receipt of qualitative proposals from North-Eastern States, fresh/revised proposals were sought from these states. Consequently, total 28 proposals from 23 States, including a proposal from the State of Uttar Pradesh, have been received. The proposals are with the competent authority for examination/scrutiny,” he added.
