France has announced a loan of 100 million euros to bolster India's flagship Smart Cities Mission and extend the CITIIS 1 program. Chrysoula Zacharopoulou, France's Minister of State for Development, Francophonie, and International Partnerships, unveiled the completion of the 100 million euro loan agreement between the French Development Agency (AFD) and the Indian government.
This loan is intended to back India's innovative Smart Cities Mission and expand on the CITIIS 1 program, which also receives support from the European Union and is executed by the National Institute of Urban Affairs (NIUA), a think tank under the Ministry of Housing and Urban Affairs, according to an official statement.
Launched in 2018, the CITIIS 1.0 program has so far benefited 12 city-level projects, aiding them in enhancing capacity and implementing inventive solutions for sustainable mobility, public open spaces, urban e-governance, ICT, and social and organizational innovation in low-income communities.
From designs oriented towards climate change to involving urban local bodies and citizens, managing environmental and social risks, and ensuring social inclusion, the project is aligned with India's journey toward urban sustainability. The European Union has provided technical support to the CITIIS 1.0 program with a contribution of six million euros.
The program's second edition now centers on the circular economy and integrated solid waste management. It maintains the same successful approach but comes with an increased budget of 212 million euros, including a loan from Germany's Kreditanstalt fur Wiederaufbau (KfW) and a 12-million-euro grant from the European Union as part of its flagship Global Gateway strategy.
Indian Minister of Housing and Urban Affairs, Hardeep Singh Puri, highlighted the increasing challenge of solid waste management in Indian cities. India generates 62 million tons of municipal solid waste annually, a figure projected to reach 165 million tons per year by 2030. The Indian government is investing significantly in proper waste collection, segregation, recycling, and treatment, with involvement from the private sector.
Minister of State Chrysoula Zacharopoulou welcomed the agreement, emphasizing that "France, together with Team Europe, is proud to support this program, which will play a crucial role in building cleaner, greener, and more sustainable cities in India." She praised the CITIIS approach for addressing the health and environmental impact of waste while creating economic opportunities and positive social impacts for citizens.
The Charge d'Affaires a.i. of the EU Delegation, Seppo Nurmi, emphasized the importance of building sustainable models to address climate change and environmental challenges in Indian cities. He highlighted the EU's commitment to supporting India under the Global Gateway Strategy and CITIIS 2.0 as a project that aligns with their mutual goal of constructing sustainable and resilient infrastructure.
The Agence Française de Développement (AFD) Group is a public financial institution dedicated to funding, supporting, and accelerating the transition to a more equitable and sustainable world.