Resolve land acquisition, FDI issues to set up smart cities: US Ambassador

NEW DELHI, Apr 28: The US today asked India to resolve land acquisition and FDI-related issues to attract funds for smart cities and said many projects may not be commercially viable unless these are addressed. Stating that the US government and companies are willing to help India realise its "ambitious plans" for setting up 100 smart cities, US Ambassador Richard Verma said they do not have clarity on financing for many projects as yet. Speaking at the annual general meeting of the American Chamber of Commerce (Amcham), Verma said the challenge for the US government and companies will be to work with Indian partners on creative approaches to develop appropriate, long-term financing that will help realise these ambitious plans. "Land acquisition, foreign direct investment and other questions still remain unresolved. The expectation of large amounts of private sector finance, either domestic or foreign, will be a challenge. These concerns mean many projects may not be commercially viable at the outset," Verma said. "... right now, we are very much in the nascent stage of finding ways forward with India on smart cities issue. We do not have clarity on financing for the many projects that need to be done," he added. Verma suggested that in order to be successful, Indian state and central governments as well as the industry need to take the lead in providing finances for smart cities, adding that the quantum of funding is still undecided. Prime Minister Narendra Modi has announced plans to develop 100 smart cities, which would be based on the concepts of green cities, zero waste and optical fibre networks. On the two-way commerce, the US Ambassador said trade in goods and services is growing and has crossed USD 100 billion. "Our bilateral trade in goods and services finally crossed that elusive USD 100 billion threshold last year and now stands at about USD 103 billion," he said, adding the US is ready to work with India to take it to USD 500 billion. On the Bilateral Investment Treaty (BIT), the Ambassador pitched for "a high standard" agreement that would further bolster investor confidence. "We are also working hard to assess the prospects for moving forward with a high-standard BIT... we know it is possible and doable," Verma added.