Who will meet Smart City’s Real Cost?
An Occasional Update from Water Initiatives Odisha(WIO)
3rd February, 2016
(Image Courtesy: FB page of Bhubaneswar Smart City)
Dear Friends/Co-sailors,
While we at Water Initiatives Odisha (WIO) congratulate the state of Odisha for having topped the list in the Smart City competition, we have some concerns to raise as well.
In a letter written to the Odisha Chief Minister, we have asked him to act on the following concerns as soon as possible.
While we at Water Initiatives Odisha (WIO) congratulate the state of Odisha for having topped the list in the Smart City competition, we have some concerns to raise as well. This email is to apprise you about such concerns requesting you to take the necessary steps.
As per the highlighted plans that we come across from media reports and statements of officials from the Bhubaneswar Municipal Corporation(BMC), the pilot Smart City called “Bhubaneswar Town Centre District(BTCD)” will be built in an area of 985 acres with a population of 46000 people. To provide so called smart and efficient facilities to this city, an amount of more than 4500 crores will be spent, 3500 crores of which will be a loan from the World Bank.
This means about one million Indian Rupees will be invested per head in this area, 78 per cent of which would be a loan. In other words, if each citizen of the Smart City has to pay back for these smart services she/he receives, she/he has to pay back 7,80,000 rupees with interest to the World Bank. We don't think this is a smart idea!
"Has the state government got any revenue generation plan from the Smart City area to be able to repay the loans or all this burden will be transferred to common citizens?” is a natural question that arises which the government needs to answer. The government must make public the Revenue Plans for the Smart City area and assure the common citizens of the state that they don’t have to subsidize for the smart services to a small fraction of the capital city.
In a state that is still not able to provide the promised 35 per cent irrigation to all its farmers and where farmer suicide cases have been increasing, how wise it is to spend so much of money (majority of which is loan) that is almost 12.5 per cent more than the entire yearly budget of the Water Resources Department of the state?
The Smart City scheme is a central government’s initiative and we understand the state entered into a competition to get into the list. However, we don’t understand why so much of loan has to be borrowed to develop good infrastructure for just a miniscule size of population and area in the state.
Further, most of our urban areas of the state are lacking basic minimum facilities. Such expensive infrastructure model for a very small section of population in the state will increase further discrimination and discontent in the state.
Highlights of this Update:
- One Million Rupee to be invested for each person residing in Bhubaneswar Town Centre District(BTCD)
- 78 per cent of this per head investment will be a loan from the World Bank
- The investment to provide better facilities to only 46000 urban people will be more than the entire yearly budget of the Water Resources Department of the state
- WIO asks the Govt. of Odisha to make public the revenue plans of Smart City investments
We look forward to your comments, suggestions and support on this issue.
Thanks and regards,
Ranjan Panda
Convenor, Water Initiatives Odisha
Cell: +91-9437050103
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Water Initiatives Odisha (WIO) is a state level coalition of civil society organisations, farmers, academia, media and other concerned, which has been working on water, environment and climate change issues in the state for more than two and half decades now.
Dear Ranjan,
ReplyDeletePlease read my article today on the same subject. You have given yet another angle to the story i.e. the financial implication. I share your concern.