Naidu said agencies such as World Bank, ADB and JAICA would come forward to lend only if the urban bodies have the ability to pay back.
The Centre would recommend loans from international agencies for reform-oriented and performing cities who have repaying capacity, Union Urban Development Minister M Venkaiah Naidu said on Monday.
He said agencies such as World Bank, ADB and JAICA would come forward to lend only if the urban bodies have the ability to pay back.
"Otherwise, by simply asking, nobody is going to give loan. And then, state government has to give guarantee. If the state is not going to give, then we will give. And then, the Central government has to give guarantee at the national level for international agencies," the Minister said.
Naidu was speaking here at a regional workshop on smart cities for 11 states.
"So, we are going to recommend for loan for those cities which are ready to reform, and have creditworthiness," he said.
Noting that there is disappointment in some cities for not figuring in the list of 100 smart cities announced by the Centre, he exhorted the cities to reform, so as to qualify.
"There is some disappointment in some cities that they have not been selected. But this is only the beginning. The selection is not automatic. 20 cities will be selected from 100 cities again. Only pre-qualification is over.
"It's like 100-m race, 200-m race, 400-m race... You pass one and then you go to the next one. That's why I said the countdown begins now. All the cities, they must be extra careful," he said, adding if you don't reform, you will not be there for the next round.
"A smart city plan is what the citizens want for themselves in their city. The broad contours of a smart city, in our context as we have visualised, are necessary core infrastructure, sanitation, health and education facilities, clean and sustainable environment, good public transport, good city governance and adoption of smart technologies to ensure decent living and catalyse economic growth, which is the need of the hour," the minister further said.
The workshop was attended by officials from states and union territories including Andhra Pradesh, Telangana, Karnataka, Tamil Nadu, Kerala, Maharashtra, Goa, Andaman and Nicobar Islands, Dadra and Nagar Haveli, Daman and Diu, Lakshadweep Islands and Puducherry.