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Smart and Sustainable Cities of the Future Key Initiatives Smart and Sustainable Cities of the Future Key Initiatives under Smart Cities Mission, Government of India For private circulation only January 2019 Smart and Sustainable Cities of the Future ii Smart and Sustainable Cities of the Future Contents Overview of smart cities 02 Introduction 02 Overall strategy 04 Governance and institutional mechanism 05 Financing of smart cities 06 Financial landscape and key sectors of smart cities 07 Focus and investments by sector 07 Status of smart cities mission 08 Representative sector-specific projects and learnings 09 Overall progress of smart city projects 09 Ease of living 09 Digital technology 10 Sustainability 11 Concluding remarks 12 01 Smart and Sustainable Cities of the Future Overview of smart cities Introduction as a technology-intensive city that has sensors installed Althoughtherearemultipledefinitionsof“smartcity”,theterm everywhereandoffershighlyefficientpublicservices means aspirational levels of infrastructure and services in the using information gathered in real time by thousands of entire urban ecosystem for citizens. interconnected devices. Further, a smart city cultivates a better relationship between citizens and governments using the A smart city is an economically vibrant city that provides its available technology. It relies on feedback from citizens to help citizens a good quality of life using Information Communication improve service delivery. It puts in place mechanisms to gather and Technology (ICT) solutions. The Smart Cities Council1 this information. definesasmartcityasonethatusesdigitaltechnologyfor all city functions. Similarly, World Bank2definesasmartcity Thefollowingfigureshowsthekeycomponentsofasmartcity: Key Components of a Smart City What all contribute towards making a city smart? SMART LIVING • Core Infrastructure • Sewerage & Sanitation • High Quality of Life • Water Supply • Smart Solutions overlying Basic • Electricity amenities • Housing • Clean & sustainable environment • Citizen Safety • Public Open space SMART PEOPLE Smart • Education SMART GOVERNANCE Living • Health • IT connectivity • Entertainment & Cultural • Online citizen services Smart Smart Activities Governance People SMART CITIES SMART ECONOMY • Employment Opportunities Smart Smart Economy Mobility Smart SMART ENVIRONMENT Environment SMART MOBILITY • Pollution • Transport • Green Building • Traffic • Renewable Energy • Walkability Source: Deloitte Analysis 1.https://smartcitiescouncil.com/smart-cities-information-center/definitions-and-overviews 2.http://www.worldbank.org/en/topic/digitaldevelopment/brief/smart-cities 02 Smart and Sustainable Cities of the Future The desired urban ecosystem for a smart city can be represented in the selection process, and prepared and submitted smart city by the four pillars of comprehensive development—institutional, proposals for evaluation. physical, social and economic infrastructure3. To cater to this holisticdevelopment,theMinistryofHousingandUrbanAffairs Cities prepared smart city proposals after extensive interactions (MoHUA) launched the Smart Cities Mission on 25 June 20154. with citizens. These interactions focused on identifying the key challenges citizens faced and areas in which they wanted The selection process5 for the participating cities includes a improvements. This made the process interactive and inclusive. “challengemethod”thatcomprisedtwostages.Instage1,the In stage 2, the selection of smart cities across India is completed. number of eligible cities that respective states can nominate Ittookfourdifferentroundstoselect100smartcities.The were informed and the states selected potential smart cities following graph shows a brief timeline of the mission progress, as through an intra-state competition. About 110 cities participated ofJune2018: Overview of Smart Cities Mission Progress Smart Cities Round 2 – 40 Round 4 – 9 Mission cities selected cities selected launched June, 2015 September, 2016 January, 2018 January, 2016 June, 2017 June, 2018 Shillong gets Round 1 – 20 Round 3 – 30 selected as the cities selected cities selected 100th Smart City Source:6 Smart Cities Mission, An overview of implementation 3.http://smartcities.gov.in/content/innerpage/what-is-smart-city.php 4.http://mohua.gov.in/cms/smart-cities.php 5.http://smartcities.gov.in/upload/presentation/5ae32ac896104Cities%20Presentation.pdf 6.http://smartcities.gov.in/upload/presentation/5c4834d78cdb30_SCM%20Prez_for%20CLAF_v3.pdf 03 Smart and Sustainable Cities of the Future Overall strategy7 The Smart Cities Mission has an integrated pan-city and area-based development strategy. Pan-city development follows a whole of the city concept and envisages the application of selected smart solutions to the existing city infrastructure. The application of these solutions involves the use of technology, information, and data to improve infrastructure and services. These solutions would cover all citizens. Area-baseddevelopmentincludesredevelopment,retrofitting,andgreenfieldprojectsinacontiguouspilotareawithinthecity,as shownbelow: Key Components of Area-based Development Strategy Redevelopment Project Retrofitting Project Greenfield Project • Replacement of the existing built- • Planning in an existing built-up area • Introduction of Smart Solutions up environment and enable co- toachievesmartcityobjectives, in previously vacant area using creation of a new layout alongwithotherobjectives innovativeplanning,planfinancing and plan implementation tools • Minimum area of 50 acres required • Minimum area of 500 acres requiredwillbeidentifiedbythe • Minimum area of 250 acres • Potentialareas:Oldslumareas, city in consultation with citizens required Core City areas • Existing structures largely to remain • Could be located either within the intact limits of the Urban Local Body or Urban Development Authority (UDA) 7.http://smartcities.gov.in/content/innerpage/strategy.php 8.http://smartcities.gov.in/upload/presentation/5c4834d78cdb30_SCM%20Prez_for%20CLAF_v3.pdf 9.http://smartcities.gov.in/content/innerpage/strategy.php 04 Smart and Sustainable Cities of the Future The smart city proposal of each metropolitan cities, to plan and implement Structure of SPV shortlisted city includes either one smart city initiatives. With a large outlay According to the guidelines of or a combination of the area-based on infrastructure and ICT solutions, many MoHUA11, an SPV has to be structured development and pan-city initiatives cities did not have experience or expertise in such a way that the state or Union featuring smart solution(s). A key feature in in managing procurement or monitoring Territory (UT) and ULB are the promoters the smart city plan is to try to ensure that projectsofsuchascale.Therewasaneed with50:50equityshareholding.The there is a sense of inclusiveness among for involving professional expertise at the privatesectororfinancialinstitutions citizens, irrespective of age, gender, and city level. could be considered for taking an economic status. The Smart Cities Mission equity stake in the SPV, provided the mandated that the proposal has at least The Smart Cities mission proposed the shareholdingpatternof50:50ofthe onecitywidesmartsolutionbenefitingall following institutional and governance state or UT and ULB is maintained and citizens. mechanisms: the state or UT and ULB together have a majorityshareholdingandcontrolof Governance and institutional Special purpose vehicle (SPV) for the SPV. mechanism implementing the smart city plan As multiple government departments and • An SPV implements the mission at According to the guidelines, a full-time agencies provide various city services, it the city level. It is required to plan, CEO heads the SPV and reports to the is a challenge to coordinate the activities appraise, approve, release funds, board of directors. The CEO is appointed of these departments or agencies (which implement, manage, operate, monitor, forafixed-termofthreeyears.The tend to work in silos). Given the smart and evaluate smart city development board of directors is required to have city programme following a whole of the projects. representatives of central government, city concept for urban transformation • The SPV has to be a limited company state government, ULB, and independent and the experience of previous urban incorporated under the Companies directors, in addition to CEO and development initiatives, there is need Act, 2013, at the city-level. A full-time functional directors. Chief operations for an institutional mechanism to ensure chiefexecutiveofficer(CEO)heads officer,chieffinancialofficer,company coordination among all players involved the SPV. The SPV needs to have secretary, and other technical resources in city infrastructure and services. These nominees of central government, state (appointed in line with the human players need to coordinate to design, plan, government, and urban local body resource policy approved by the SPV and implement smart city initiatives. (ULB)onitsboard.AsofMay2018, board) will support the CEO. 91 SPVs had been formed under the Another key concern was the capacity Smart Cities Mission10. of human resources, particularly in non- 10. PressReleasebyMinistryofHousingandUrbanPovertyAlleviationon17thMay,2018:http://pib.nic.in/newsite/PrintRelease.aspx?relid=179368 11. http://smartcities.gov.in/upload/uploadfiles/files/SPVs.pdf 12. http://smartcities.gov.in/upload/uploadfiles/files/SPVs.pdf 05 Smart and Sustainable Cities of the Future Functions and Responsibilities of SPV x. Determine .0and collect user charges, such
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