City Investments to CITIIS 2.0 from 2023 to 2027 Approved by the Cabinet

The Indian government has given its nod to the City Investments to Innovate, Integrate and Sustain 2.0 (CITIIS 2.0) program. Chaired by Prime Minister Shri Narendra Modi, the Union Cabinet approved this initiative, which is a collaboration between the Ministry of Housing and Urban Affairs (MoHUA) and several international organizations including the French Development Agency (AFD), Kreditanstalt für Wiederaufbau (KfW), the European Union (EU), and the National Institute of Urban Affairs (NIUA). CITIIS 2.0 will be implemented from 2023 to 2027.

Aims and Objectives of CITIIS 2.0

CITIIS 2.0 aims to support selected projects that promote a circular economy with a specific focus on integrated waste management at the city level. Additionally, the program intends to facilitate climate-oriented reform actions at the state level and strengthen institutions and knowledge dissemination at the national level. It is designed to leverage and build upon the successes and lessons learned from CITIIS 1.0.

Funding and Components of CITIIS 2.0

The funding for CITIIS 2.0 includes a loan of Rs.1760 crore (EUR 200 million) from AFD and KfW, with each contributing EUR 100 million, as well as a technical assistance grant of Rs.106 crore (EUR 12 million) from the EU. The program consists of three major components:

Component 1: Financial and technical support will be provided to develop projects that focus on building climate resilience, adaptation, and mitigation in up to 18 smart cities. The projects will be selected through a competitive process and will emphasize the promotion of a circular economy with integrated waste management.

Component 2: All states and union territories will be eligible for support on demand. The states will receive assistance in setting up or strengthening their existing state climate centers/cells. They will also create state and city-level Climate Data Observatories, facilitate climate-data-driven planning, develop climate action plans, and build capacities of municipal functionaries. The National Institute of Urban Affairs (NIUA) will coordinate technical assistance and strategic support to state governments through the Program Management Unit (PMU).

Component 3: Interventions will take place at the central, state, and city levels to strengthen climate governance in urban India. This will involve institutional strengthening, knowledge dissemination, partnerships, capacity building, research, and development to support scaling up across all states and cities.

Impact and Alignment with National Programs

CITIIS 2.0 will complement the climate actions undertaken by the Government of India through existing national programs such as the National Mission on Sustainable Habitat, AMRUT 2.0, Swachh Bharat Mission 2.0, and Smart Cities Mission. Furthermore, the initiative will contribute to India's Intended Nationally Determined Contributions (INDCs) and commitments made at the Conference of the Parties (COP26).

By implementing CITIIS 2.0, the Indian government aims to promote innovative, integrated, and sustainable urban development practices. The program's challenge-driven financing model, based on principles of competitive and cooperative federalism, has already demonstrated success in mainstreaming such practices through CITIIS 1.0. The initiative will help cities across the country enhance their climate resilience, reduce waste, and contribute to India's sustainable development goals.

CITIIS 2.0 is set to play a crucial role in India's ongoing efforts to create smart, sustainable, and resilient cities. With its comprehensive approach and collaborative framework, the program is expected to bring about positive and transformative changes in urban India, fostering a greener and more sustainable future.