Published on 23 Feb 2025
A smart city is an urban area that uses technology to improve the efficiency of city operations and services, and to enhance the quality of life for its citizens. It's essentially a city that leverages digital solutions to address urban challenges.
Key characteristics of a smart city:
Data-driven decision making: Using data collected from various sources to make informed decisions about city management.
Sustainable development: Focusing on environmental sustainability, resource efficiency, and climate change adaptation.
Citizen engagement: Involving citizens in decision-making processes and providing them with easy access to city services.
Innovation and technology: Utilizing advanced technologies like IoT, AI, and big data to improve city operations.
Infrastructure: Modern and efficient infrastructure for transportation, energy, water, and waste management.
Smart Cities Mission
The Smart Cities Mission, launched in 2015, is a flagship initiative of the Indian government aimed at transforming urban landscapes into sustainable, efficient, and citizen-centric environments.
About Smart Cities Mission
City Selection: 100 cities were selected through a competitive process between January 2016 and June 2018.
Time Frame: Cities are given a five-year period from the selection date to complete proposed projects. The Smart Cities Mission supposed to conclude by June 2023 but it was extended till June 2024 to finish pending projects.
Financial Support Allocation: The union government allocated ₹48,000 crore over five years to the 100 smart cities. State governments and Urban Local Bodies (ULBs) matched the amount provided by the Union government. Additional resources raised through convergence, from ULBs’ own funds, grants under the Finance Commission, innovative finance mechanisms such as Municipal Bonds, other government programs and borrowings.
Alignment with SDG’s: Over 70% of Smart Cities Mission projects align with the United Nations' Sustainable Development Goals (SDGs), particularly SDG 11 (Sustainable Cities and Communities).
Challenges in the implementation of Smart Cities
Financial Constraints
Insufficient funding: Many cities have received less than the promised central funds, hindering project implementation.
Example: Only 6% of Smart Cities Mission projects are funded through PPPs instead of the recommended 21%. About 50 cities couldn’t generate any funding through PPPs.
Dependence on external sources: Reliance on public-private partnerships (PPPs) and loans has been less than anticipated, affecting project timelines.
Implementation Gaps
Delayed project execution: Frequent transfer of key personnel and lack of clear guidelines have contributed to project delays.
Weak coordination: Ineffective coordination between central, state, and local authorities has hampered progress.
Absence of master plans: The absence of comprehensive urban plans in many cities has hindered effective project planning and implementation.
Example: According to a report by NITI Ayog titled “Reforms in Urban Planning Capability in India”, master plans are absent in 65 per cent of the 7,933 recognised urban entities.
Institutional Challenges
Funding disparities: Unequal distribution of funds among cities has led to disparities in project implementation.
Example: In the case of State/ULB contribution, only 28 cities received 100% of their share from states/ULBs with funds released below 60% in 14 cities by states/ULBs.
Ineffective monitoring: Lack of robust monitoring mechanisms has impacted project oversight and evaluation.
Limited capacity building: Insufficient capacity building for city officials has hindered effective project management.
Way Forward
Expanding the Smart Cities Mission
Tier-II city focus: Extending the mission to include smaller cities within 100 km of state capitals.
Leveraging SPV expertise: Utilizing the knowledge gained from previous projects for future initiatives.
Enhancing Smart City Operations
Expanded role of ICCCs: Increasing the responsibilities of Integrated Command and Control Centres to include additional urban services.
Infrastructure maintenance: Developing comprehensive strategies for the upkeep and upgrade of city infrastructure.
Governance improvements: Appointing dedicated CEOs with fixed tenures and strengthening city governance structures.
Financial Sustainability
Diverse funding sources: Exploring alternative funding mechanisms beyond government grants.
PPP promotion: Encouraging more public-private partnerships for project implementation.
International Collaboration: India is positioned to support and guide development projects in other countries, such as the Gelephu Smart City Project in Bhutan.
Indian Success Stories
Ahmedabad: Sensor-based monitoring of the water network resulted in an additional supply of 50 million litres a day (MLD) by detecting leakages.
A gravity-based network in Indore was used to prevent tonnes of untreated sewage from entering the Kahn River, the Saraswati River and the network of 25 drains.
Mudasarlova Reservoir Floating Solar Plant in Vishakapatanam led to an annual electricity generation of 3,613 MWh and saved $0.28 million. The project prevented the emission of over 3,000 tonnes of CO2.
Geography
Concept of Smart Cities
Key characteristics of a smart city
Smart Cities Mission
Challenges in the implementation of Smart Cities
General Studies Paper 1
Related Articles