SMART CITY MISSION: An Analysis

Main Components of Smart City Mission (GURU prasad spider diagram)

CHALLENGES:

• Flawed Selection Process:

• Selection of 100 cities on a competitive basis was flawed due to the diverse urban realities in India.

• The scheme did not align with the dynamic nature of urbanisation in India, unlike the more static urbanisation in the West.

• Exclusionary Development:

• The SCM became an exclusionary scheme, with less than 1% of a city's geographical area selected for development.

• Example: Chandigarh received ₹196 crore in the first tranche but spent it on smart water metres, a Wi-Fi zone, and solid waste management in just one sector (Sector 43).

• Inadequate Funding:

• McKinsey reports suggest a capital expenditure of $1.2 trillion is needed to make Indian cities livable by 2030.

• The SCM allocated ₹1,67,875 crore (less than $20 billion) over nine years, which is only about 0.027% of the total requirement.

• Governance Issues with Special Purpose Vehicle Model:

• The SPV model was not aligned with the 74th Constitutional Amendment, leading to objections from many cities.

• The design was criticised as too top-down.

• Example: A hilly town with an annual budget of less than ₹100 crore claimed projects worth more than ₹2,500 crore, which did not match the residents' demands.

• Displacement and Social Impact:

• The SCM led to the displacement of people living in poorer localities and disruption of urban commons.

• Street vendors were displaced, exacerbating the living conditions of the urban poor.

• Enhanced Urban Flooding:

• Infrastructure development projects under SCM led to enhanced urban flooding.

• Towns that historically never experienced flooding became vulnerable due to projects that disrupted water channels and natural contours.

Wayforward

• Enhanced Financial Models

• Public-Private Partnerships (PPPs): 

• Promote PPPs to attract private investment. 

• Develop clear policies and frameworks to ensure attractive returns and mitigate risks for private investors.

• Innovative Financing: 

• Explore alternative financing mechanisms such as municipal bonds, land value capture, and crowd-funding for specific projects. 

• Utilise international funding and grants for sustainable urban development.

• Strengthening Technological Infrastructure

• Data Integration and Management: 

• Invest in robust data infrastructure and platforms that enable seamless data integration and interoperability. 

• Establish city-level data centres and encourage open data initiatives.

• Cybersecurity Measures: 

• Implement stringent cybersecurity protocols and regular audits to safeguard urban systems against cyber threats. 

• Provide training for city officials on cybersecurity best practices.

• Improved Governance and Institutional Capacity

• Inter-Agency Coordination: 

• Establish clear governance frameworks and coordination mechanisms among various agencies involved in the Smart Cities Mission.

•  Designate nodal officers for better project oversight and accountability.

• Capacity Building: 

• Conduct regular training programs and workshops for urban local bodies (ULBs) to enhance their technical and managerial skills.

• Partner with academic and research institutions for knowledge exchange and capacity building.

• Active Citizen Engagement

• Public Awareness Campaigns: 

• Launch awareness campaigns to educate citizens about the benefits of smart city initiatives and how they can participate.

•  Use social media, community radio, and local events to reach a wider audience.

• Citizen Feedback Mechanisms: 

• Develop robust platforms for citizen feedback and participation in decision-making processes. 

• Use mobile apps and online portals to facilitate real-time interaction between citizens and city authorities.

• Infrastructure Upgradation

• Holistic Planning: 

• Undertake comprehensive urban planning that integrates smart solutions with existing infrastructure. 

• Focus on areas with the most urgent needs and potential for high impact.

• Evaluation

• Performance Metrics: 

• Establish clear, measurable indicators for monitoring the progress and impact of smart city projects. Use technology to gather real-time data for continuous evaluation.

• Transparency and Accountability: 

• Ensure transparency in project implementation and fund utilisation through regular audits and public disclosure of project details. 

• Engage independent agencies for third-party evaluations.

• Leveraging Technology and Innovation

• Smart Solutions: 

• Encourage the adoption of cutting-edge technologies such as IoT, AI, and machine learning in urban management. 

• Develop smart city labs and innovation hubs to pilot and scale innovative solutions.

GLOBAL BEST PRACTICES

SHORT TAKE 

• Special Purpose Vehicle:

• A Special Purpose Vehicle (SPV) is a separate legal entity. It is created for a specific purpose or activity. 

• SPVs are commonly used to isolate assets or risks from the parent company. 

• They are also used to structure complex financial transactions.

• SPVs are often used to finance large projects, such as power plants or oil pipelines. This is because SPVs can isolate the risk of the project from the sponsor. This makes it easier to raise capital.

CONCLUSION