City Investments to Innovate, Integrate and Sustain 2.0 (CITIIS 2.0) from 2023 to 2027

The Union Cabinet chaired by the Hon’ble Prime Minister Shri Narendra Modi, has approved the City Investments to Innovate, Integrate and Sustain 2.0 (CITIIS 2.0). CITIIS 2.0 is a program conceived by the Ministry of Housing and Urban Affairs (MoHUA) in partnership with the French Development Agency (AFD), Kreditanstalt für Wiederaufbau (KfW), the European Union (EU), and National Institute of Urban Affairs (NIUA). The program will run for a period of four years, i.e., from 2023 till 2027.

The program envisages to support competitively selected projects promoting circular economy with focus on integrated waste management at the city level, climate-oriented reform actions at the State level, and institutional strengthening and knowledge dissemination at the National level.

The funding for CITIIS 2.0 would include a loan of Rs.1760 crore (EUR 200 million) from AFD and KfW (EUR 100 million each) and a technical assistance grant of Rs.106 cr. (EUR 12 million) from the EU.

CITIIS 2.0 aims to leverage and scale up the learnings and successes of CITIIS 1.0. CITIIS 1.0 was launched jointly in 2018 by MoHUA, AFD, EU, and NIUA, with a total outlay of ₹933 crore (EUR 106 million). CITIIS 1.0 consisted of three components:

Component 1: 12 city-level projects selected through a competitive process.

Component 2: Capacity-development activities in the State of Odisha.

Component 3: Promoting integrated urban management at the national level through activities undertaken by NIUA, which was the Program Management Unit (PMU) for CITIIS 1.0

Technical assistance was made available under the program at all three levels through domestic experts, international experts, and transversal experts. It has resulted in the mainstreaming of innovative, integrated and sustainable urban development practices through a unique challenge-driven financing model based on the principles of competitive and cooperative federalism.