On Wednesday, the Union Cabinet granted approval for the implementation of CITIIS 2.0, an initiative aimed at fostering a circular economy in 18 smart cities through a competitive selection process. The scheme will receive a total funding of Rs 17.60 billion, with loans from the French Development Agency (AFD) and the German development bank Kreditanstalt für Wiederaufbau (KfW), along with a grant of Rs 1.06 billion from the European Union. The National Institute of Urban Affairs will provide support throughout the program, which will commence this year and extend until 2027.

The primary objective of the CITIIS 2.0 program is to back select projects that promote a circular economy. This will involve a focus on integrated waste management at the city level, climate-oriented reform actions at the state level, and the strengthening of institutions and knowledge dissemination at the national level, as stated in the government's official statement.

The original CITIIS program was launched in 2018 by the Ministry of Housing and Urban Affairs (MoHUA), in collaboration with the AFD, the European Union, and the National Institute of Urban Affairs. With a total budget of Rs 9.33 billion, the first iteration selected twelve cities out of the 100 smart cities in India.

Under CITIIS 2.0, financial and technical support will be provided to 18 cities to develop climate-resilient projects, with a particular emphasis on integrated waste management. In the second component of the program, all states and union territories will be eligible for support in establishing climate centres, creating climate data observatories at the state and city levels, and capacity-building for municipal staff.

According to a source within the Ministry of Housing and Urban Affairs, the projects funded through this scheme are likely to include waste collection and transportation, including the establishment of transfer stations, automated recovery facilities, bio-methanation plants, construction and demolition waste processing plants, and sanitary landfills.

A circular economy revolves around creating markets that incentivize the reuse of products instead of discarding them and extracting new resources. In such an economy, all forms of waste, such as clothing, scrap metal, and outdated electronics, are either reintegrated into the economy or utilized more efficiently, as defined by the UN Conference on Trade and Development (UNCTAD).

An official stated that at least one city will be selected from each region of the country, including north, northeast, east, central, west, and south, to participate in the program.

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