A day after the Smart City consultants – ICLEI South Asia – presented an ambitious plan involving an investment of Rs 1313.72 crore, former Panjim mayors were already raising questions as to from where is the money going to come. The questions are very valid as the CCP does not have the economic resources to meet its contribution towards the smart city costs.
The plan, as envisaged by the Centre, was to have selected cities make proposals to the Ministry of Urban Development for a fund to be released by the Union Government for the city’s development. Panjim was one of the cities selected for the programme in which once the plan was approved, the Centre would release a fund to the tune of Rs 500 crore and the local body and State government would contribute a similar amount. But now that the plan has been presented, the cost have gone beyond Rs 1000 crore and the burden on the State government and the local body is Rs 813.72 crore.
The city corporation is in a piquant situation. When the council meets on December 1, 2015 to approve the proposal, it has to take a crucial decision on whether to approve the SCP drafted by the consultant or recommend changes. If it says yes to the proposal it has to raise the money to meet its contribution to the programme. If it says no, Panjim loses the chance of being in the first list of 20 smart cities of this country. There is no denying the fact that Panjim desperately needs a facelift and what has been proposed would improve the general living conditions in the city, but there also exist the concerns of who is going to pay the bill and how will the finances be arranged? Two former mayors have raised this question, while one other said she was confident the Centre and the State would ensure that the financial contribution was met. But, shouldn’t the CCP be in a position to pitch in with its contribution without having to depend on the State and Centre?
But from where will it get the money? CCP cannot dip into its savings because it doesn’t have any. It has also no new sources of income that could get it to meet its share of 20 percent of the Rs 800 crore. It cannot raise taxes because for the quality of service it provides to the residents of Panjim the taxes are already too high. Yet, nobody is against development and the councillors are also clear about this. No politician would risk saying no to development, when future electoral prospects depend almost entirely on works undertaken.
But, Panjim has had a history of missing the development bus in the past. The State capital missed the JNNURM funds by delaying in sending the proposals. This time it is set to meet the deadline for the SCP, but the difficulties in arranging funds looms large over the proposal. Funds, however, should not be the stumbling block that will keep Panjim from being transformed, as the draft proposal states, ‘into a world-class, environmentally sustainable and livable city for all, while preserving its heritage, cultural diversity and ecosystem through innovation and smart solutions’. While the plan envisaged for the city may be smart, the corporation should also get smart about the funding. The consultant has proposed an investment through public-private partnership (PPP) and also from international agencies or through market loans. For CCP the former may be the best bet as loans would only add to its debt burden. It needs to be innovative in its thinking to meet this new challenge.
