For Quick Alerts
For Daily Alerts

Govt to link user charges to inflation to fund Smart Cities

By Religare

The Indian Government has said that it is planning to link user charges in urban areas to inflation for financing the Smart Cities Mission, the media reports said.

Commenting on the development, an Urban Development Ministry Official told the media, "A proposal has been mooted for automatic partial indexing of user charges in urban areas to inflation and quality of services to increase cost recovery to at least cover operation and maintenance charges."


"For example, if a special water project is taken up for supplying 24-hour supply in the proposed Smart City then, as per the proposal, some charges would be levied to cover the operation and maintenance costs," he added.

As per reports, the Government has come up with this proposal as there will be a huge resource requirement for Smart Cities Mission and Atal Mission for Rejuvenation and Urban Transformation (AMRUT).

The Government is also developing a Model Concession Agreement in urban water supply based on tariff indexation to inflation to minimize risks.

Story first published: Monday, September 7, 2015, 12:10 [IST]
Company Search
Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'


We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more