IAS Gyan

Daily News Analysis


22nd November, 2023 Polity


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Picture Courtesy: www.hindutamil.in

Context: The CITIIS 2.0 Challenge was launched to drive innovation in waste management across urban areas.

About CITIIS 2.0

  • CITIIS 2.0, the second phase of the City Investments To Innovate, Integrate and Sustain (CITIIS) program, is a comprehensive initiative aimed at enhancing India's urban development with a specific focus on addressing climate change challenges.
  • The program, conceptualized by the Ministry of Housing and Urban Affairs (MoHUA) in partnership with international entities like the French Development Agency (AFD), KfW Development Bank, the European Union, and the National Institute of Urban Affairs (NIUA), is designed to achieve several objectives:

Goals of CITIIS 2.0

  • Drive Investments into Urban Climate Action: The program aims to attract investments into projects that promote a circular economy, particularly focusing on integrated waste management within urban areas.
  • Foster Climate-Sensitive Planning and Action: CITIIS 2.0 intends to encourage evidence-driven approaches to urban planning and action that are sensitive to climate change, thereby impacting states and cities positively.
  • Build Institutional Mechanisms and Partnerships: CITIIS 2.0 objectives are to create institutional mechanisms, leverage partnerships, and enhance capacity building for all urban local bodies across India.

Funding and Structure

  • Financial Allocation: The program's total funding amounts to INR 1,866 crores (EUR 212 million). This includes loans of EUR 100 million each from AFD and KfW, totalling INR 1,760 crores (EUR 200 million), and a technical assistance grant of INR 106 crores (EUR 12 million) from the EU.
  • Program Management: The CITIIS Program Management Unit at NIUA will oversee and manage the program's implementation.

Eligibility and Project Selection

  • All 100 Special Purpose Vehicles (SPVs) under the Smart Cities Mission are eligible to seek assistance under CITIIS 2.0.
  • Up to 18 innovative projects that promote a circular economy, with a specific emphasis on integrated waste management, will be selected for assistance.

Project Funding Breakdown

  • Grant Distribution: The CITIIS grant for each project will cover 80% of the total project cost, capped at INR 135 Crores. For North-Eastern and Hill States, this grant may cover up to 90% of the total project cost.
  • Additional Funding: The remaining 20% of the total project cost needs to be mobilized by the selected city through their funding sources. In the case of North-Eastern and Hill States, this additional funding amounts to 10% of the total project cost.

Impact and Alignment

  • CITIIS 2.0 aligns with India's commitments to combat climate change, as articulated during the COP26 conference, and complements ongoing national missions like the Smart Cities Mission, Swachh Bharat Mission, AMRUT, and Urban Transport.
  • Its focus on circular economy principles and integrated waste management aligns with broader government objectives of sustainable urban development and environmental preservation.


  • By fostering innovation, encouraging investment, and promoting climate-sensitive approaches, CITIIS 2.0 aims to significantly contribute to India's urban development while addressing critical environmental challenges.

Must Read Articles:

CITIIS 2.0: https://www.iasgyan.in/daily-current-affairs/citiis-20

City Investments to Innovate, Integrate and Sustain 2.0 (CITIIS 2.0): https://www.iasgyan.in/daily-current-affairs/city-investments-to-innovate-integrate-and-sustain-20-citiis-20


Q. How are smart cities contributing to the overall urban development and sustainability goals in India, and what key technological advancements and initiatives are being implemented to enhance the quality of life for citizens in these smart cities?