RfP VCF KakinadaThe Ministry of Urban Development (MoUD), Government of India has rolled "Smart City" Mission and "AMRUT" Mission. One of the strategic components of the SCM id 'Area -based Development(ABD)' - developing specific areas within cities through renewal, redevelopment and greenfield development strategies. In turn, these can be replicated and scaled up to the rest of the city over time. In order to replicate the ABD to other 'Areas' of the Smart City substantial funding from other sources will be required.
The 20 lighthouse cities have broadly identified six financing sources for meeting their implementation needs: mission grants, convergence with other missions, own source revenues, public private partnerships, market borrowing and others (e.g. CSR funds). One less used internal revenue source is Land. Land value appreciates due to regulatory changes and investments in public goods infrastructure. Such increases in value can be captured by the Governments through various Value Capture Financing tools. Such tools if implemented can generate substantial internal resources for ULBs.