URBAN GEOGRAPHY, 3RD SEM, UNIT-2

Smart Cities
The term Smart City is very much in vogue now-a-days but lacks any universal definition. As
per the UK Department of Business, Innovation and Skills” The concept is not static, there is no
absolute definition of a smart city, no end point, but rather a process, or series of steps, by which
cities become more ‘liveable’ and resilient and, hence, able to respond quicker to new
challenges”. There are a number of definitions given by various institutions and organizations
but none has been taken as universal. The definition varies over space as the smart city in
African countries will definitely vary from the smart cities of Europe because of different
developmental benchmarks and aspirations of its people. However, the term does indicate
something which ought to be common to all the places i.e. some basic facilities which should be
common to all the cities that make them smart. They are as follows

Employment opportunities: This is the basic attraction to a city. A smart city should have
sufficient economic opportunities to support a large population in gainful employment

Sustainability: City should have social and environmental sustainability

Quality of Life: A smart city should ensure safety and security of every one, promote feeling
of inclusiveness and a sense of belonging along with quality education, healthcare and
participation in governance.

Besides these basic prerequisites of a smart city there are many other benchmarks that can be
set and revised from time to time depending upon the level of development of the city and the
aspirations and visions of its inhabitants.

The Government of India anticipating the exponential rise in the urban population came up
with the idea of developing 100 smart cities to cater to the needs of burgeoning population along
with the aim of providing a good quality of life and improved urban governance. The mission
has proposed several models of smart city development which can be chosen depending upon the
needs of the people, resource availability and the aspirations of all the stakeholders.

The Government had launched the Smart city Mission on 25th June 2015 with the aim of
developing 100 smart cities in five years duration. It has laid down certain guidelines and
proposals to make this mission a success. It has identified certain features that characterise smart
cities. Some of the key features have been given below

Key Features of smart city

Some key features of the smart cities are given below
 i. Promotion of mixed land use — focus on planning for ‘unplanned areas’ containing a range
of activities to make land use more efficient. Some flexibility by the state will also be provided
in land use and building bye-laws.

ii. Expansion of housing opportunities for all.

iii. To strive towards creation of walkable localities. Focus will be on decongestion, reduction
of air pollution and resource depletion, stimulating local economy, encouraging interactions and
ensuring security. The road network development planning will also keep in mind the pedestrians
and cyclists.

iv. Promoting development of open spaces like parks, playgrounds and recreational spaces as
they have strong role in enhancing the quality of life of citizens as well as restoring the eco-
balance.

v. Promote and introduce a variety of transport options along with strengthening of Public
transport.

vi. Providing efficient citizen-friendly governance by increasing reliance on online services for
accountability and transparency, reducing cost of services and providing services without the
need to go to municipal loffices.

vii. Creating and giving an identity to the city on the basis of its main economic activity, such
as its arts and craft, culture, sports goods, furniture, textile, dairy, education etc.

viii. Providing Smart Solutions to infrastructure and services in area-based development.

Coverage
The Mission covers 100 cities with a duration of five years (FY2015-16 to FY2019- 20). It
may be continued further in the light of evaluation done by the Ministry of Urban Development
(MoUD) incorporating the experiences and learnings into the Mission.

Strategy of the Mission

The aim of transformation of city into smart city requires a well-thought-out strategy taking
into account all the nuances of development. There are three major strategic components of
Area-based development in the Mission- Retrofitting, Redevelopment and Green field
development. A Pan-city development initiative in which Smart Solutions are applied also forms
part of the strategy.

1. Retrofitting will focus on planning in an existing built-up area thus endeavouring to make
it more efficient and live able. An area consisting of more than 500 acres will first be identified
by the city in consultation with citizens. Based on the existing level of infrastructure services in
the marked area the cities will identify priorities and prepare a strategy. The existing structures
will remain intact in this model but there will be infusion of more intensive infrastructure
services and a large number of smart applications into the identified Smart City. This strategy
requires less time and can be replicated in other parts of the city to make it smarter.

2. Redevelopment will bring replacement of the existing built-up environment, would enable
creation of a new layout with improved infrastructure and mixed land use. Redevelopment
strategy envisages an area of over 50 acres, identified by Urban Local Bodies in consultation
with citizens. This would then have a new layout plan prepared for the area promoting mixed
land-use and high ground coverage. For example the redevelopment model of the Saifee Burhani
Upliftment Project in Mumbai and East Kidwai Nagar in New Delhi.

3. Greenfield development focuses on introducing Smart Solutions in a vacant area (of more
than 250 acres) using new and innovative planning, financing and implementation tools. There
are provisions for affordable housing for the poor. Greenfield developments are helpful to
address the needs of the expanding population. The GIFT City in Gujarat is a good example of
such a smart city.

4. Pan-city development strategy is based on applying selected Smart Solutions to the existing
city-wide infrastructure. This will involve usage of information, data and new technology to
make infrastructure and services better and efficient. For example, application of Smart Solutions
in the transportation sector ( proper and intelligent management of traffic) will reduce time and
cost of travel in the city thus making its citizens more productive. It will also improve their
quality of life. Recycling of water and proper metering of water supply is another good example
of application of smart solutions.

Each shortlisted Smart City is expected to follow any of the three proposed development
models (Retrofitting, Redevelopment and Greenfield) ora mix of all the three plus a Pan-city
feature with Smart Solutions. Pan-city is an additional feature to be provided by the selected
cities to brace it with smart solutions.

Selection of Smart Cities

Each aspiring city undergoes ‘City Challenge’ Competition. There are two major stages in the
selection process.

Stage I: Short listing of cities by States

The States/ UTs short list their potential Smart Cities (out of a number of cities in the state) on
the basis of ‘conditions precedent’ and scoring criteria. These conditions precedent are required
to be met by the potential cities to succeed in the first round of competition. Thereafter, the
highest scoring potential Smart Cities are shortlisted and recommended for participation in the
second stage of the challenge. The information is then evaluated by the State Mission Director
after which it is placed before the State-level High Powered Steering Committee (HPSC)for
approval.
 The successful cities of the first round of competition is sent by the State/UT as the
recommended shortlist of Smart Cities to the Ministry of Urban Development by the stipulated
date whereupon The MoUD will announce the list of 100 Smart Cities.

Stage 2: The Challenge round

The potential 100 Smart Cities will prepare their proposals for participation in city challenge
round. The Smart City Proposal is very crucial and is expected to have important information
about the model chosen (whether retrofitting or redevelopment or green field development or a
mix of all including a Pan-City feature with Smart Solutions). The Smart City Proposal (SCP)
will also provide various inputs about the consultations held with the city residents and
stakeholders, how the objectives and aspirations are matched realistically with the vision and
strategy contained in the Smart City Proposal. This also includes the crucial aspect of financing
of the Smart City plan to attract a sizeable private participation.

The proposals are submitted to the MoUD on or before the stipulated date indicated to the
States/ UTs. All the 100 city proposals that are submitted to MoUD will then be evaluated by a
Committee having national and international experts, organizations and institutions. The MoUD
then announces the winners of the first round of Challenge. Immediately after the announcement
the winning cities start their course of action to make the city smart while those who could not
make it to the list of successful cities will begin work on improving their Smart City Proposals
for consideration in the next round. On the basis of the nature of the SCPs and outcomes of the
first round, the MoUD may decide to provide constant support and assistance to the potential
Smart Cities thus helping them to upgrade their proposals before the second round.

Following is the list of 98 shortlisted smart cities announced by the Ministry of Urban
Development on 27th august 2015. The list shows that out of 98 cities 24 are capital cities,
another 24 are business and industrial centres, 18 are culture and tourism centres, 5 are port cities
and 3 are education and health care centres. The states were allotted a quota of cities on the basis
of number of statutory cities and towns and its total population. UP being the largest state had the
highest allotment at 13 (12 announced 1 not finalized) followed by Tamil Nadu-12 and
Maharashtra – 10. Most of the smaller states, North eastern states and union territories have one
smart city each.

It is also important to note that many state capitals could not make it to the list of cities. Patna,
Kolkata, Bengaluru, Shimla, Puducherry, Trivandrum, Gangtok, Daman and Itanagar were not
among the shortlisted smart cities. The state of Jammu and Kashmir is still undecided about its
city.
Implementation of the Mission
After selection of the cities in Stage II of the Challenge, the process of implementation will
start with the setting up of a Special Purpose Vehicle (SPV). The SPV at city level would be
established as a limited company under the Companies Act, 2013 with the State/ UT and the
ULB as the joint promoters having 50:50 equity share holding. This pattern of the shareholding
has to be maintained at all times. The private sector / financial institutions may also be invited to
have equity stake in the SPV, provided the shareholding pattern of the State/ UT and the ULB is
equal to each other and both together have majority shareholding and control of the SPV.
 The SPV has been given the crucial task of planning, appraisal, approval, release of funds,
implementation, management, monitoring and evaluation of the Smart City development
projects. Each Smart City is required to have an SPV which will be headed by a CEO and have
nominees from Central and State Governments along with nominees from Urban Local Bodies
on its Board. The sole objective is to provide flexibility to the SPV to ensure efficient and
smooth implementation and management of the Smart City project. The States/ULBs will
undertake necessary measures towards this end.

The SPV is empowered to appoint Project Management Consultants (PMC) to design,

develop, manage and implement area-based projects. SPVs can take guidance and assistance
from any of the consulting firms in the list prepared by MoUD.

Funds provided by the Government of India to the SPV will be utilized only for the purpose
for which the grants have been provided and conform to the conditions laid down by the MoUD.
Transparency and fair procedures must be followed in the procurement of goods and services

Financial Assistance
The Mission will be operated as a Centrally Sponsored Scheme. The Central Government has
proposed an assistance of Rs 48,000 crores to the Mission which will be distributed to the
selected cities over a period of five years. An equal contribution is required from the State/ULBs.
Together it adds up to Rs 1 lakh crore of Government/ULB funds for the development of Smart
Cities.

Even the combined fund of the Government of India and the ULBs will not be able to meet the
required cost of the entire project, therefore, it is imperative to mobilize funds from other sources
like (a) States/ ULBs own resources generated from sources like user fees, beneficiary charges,
impact fees, land monetization, debt, loans, etc. (b) Pooling additional resources transferred on
account of acceptance of Fourteenth Finance Commission’s recommendations. (c) Innovative
finance mechanisms like municipal bonds, Tax Increment Financing (d) mobilizing funds from
Central Government schemes like Swachh Bharat Mission, AMRUT etc.(e) Leverage
borrowings from domestic or foreign financial institutions (f) States/ ULBs may access National
Investment and Infrastructure Fund (NIIF),that was announced by the finance minister.(g)
inviting private participation through PPP

The Scheme will have the distribution of funds as given below:

i. Project funds – 93%

ii. Administrative and Office Expenses (A&OE) funds for state/ULB -5%
iii. Administrative and Office Expenses funds for MoUD- 2%

Release of Funds
 (1) After the first stage of the challenge when the names of the smart cities are announced
each Smart City will be provided an advance of Rs. two crore for the preparation of Smart City
Proposal.

(2) Government proposes to give Rs.200 crore to each selected Smart City in the first year of
the launch of the mission. After the deduction of Rs. two crore advances and A&OE share of the
MoUD, each Smart City will get Rs. 194 crore out of Rs. 200 crore in the first year. Thereafter
Rs. 98 crore out of Rs. 100 crore will be given every year for the next three years.

The release of yearly instalment of funds to the SPVs will take place only after they meet the
conditions given below
 Submission of the City Score Card to the MoUD on time.
 Satisfactory progress of projects (both physical and financial) as shown in the Utilization
Certificate and the annual City Score Card.
 Achievement of the set targets contained in SCP.
 A Fully operational and efficient SPV as set out in the guidelines of the association plus
acertification by the Board Resolution that all the required conditions have been met.

Monitoring of Project
To make the mission a success and ensure it runs efficiently without glitches it is necessary
that it should be periodically monitored at different levels. Therefore, steps have been taken to
monitor the Mission at National, State and City Level.

At National Level it will be monitored by An Apex Committee (AC), headed by the

Secretary, MoUD and representatives of related Ministries and organisations. The committee
will approve the proposals, review and monitor the progress, approve the release of funds and
also may recommend mid-term correction in the implementation if it feels necessary.

There will also be a National Mission Director, who is made the overall in-charge of all
activities related to the Mission.

At State Level monitoring is done by State level High Powered Steering Committee (HPSC)
chaired by the Chief Secretary. Representatives of State Government departments, the
Mayor and Municipal Commissioner of the ULB relating to the Smart City will be represented in
the HPSC.

On the lines of National Mission Director the state will have its State Mission Director who
will be an officer not below the rank of Secretary to the State Government. He will function as
the Member-Secretary of the State HPSC.

At the City Level a Smart City Advisory Forum will be constituted for all 100 Smart Cities to
help, advice and enable collaboration among stakeholders. The forum will include the District
Collector, MP, MLA, Mayor, CEO of SPV, technical experts, local youth and at least one
representative from RWA/registered Tax Payers Association/ slum level federation/NGO.

Challenges
The objective of developing 100 smart cities is by no means an easy task. There are some
challenges discussed below that are likely to come up in the course of implementation of the
mission.( Smart Cities: Mission Statement and Guidelines,2015, M0UD,Govt. of India.)

1. This is the first time, a MoUD programme is using the competition method to select cities
for funding and using a strategy of area-based development. This captures the spirit of
‘competitive and cooperative federalism’.

2. States and ULBs will play a key supportive role in the development of Smart Cities. Smart
leadership and vision at this level and ability to act decisively will be important factors
determining the success of the Mission.

3. Understanding the concepts of retrofitting, redevelopment and green field development by

the policy makers, implementers and other stakeholders at different levels will require capacity
assistance.

4. Major investments in time and resources will have to be made during the planning phase
prior to participation in the Challenge. This is different from the conventional DPR-driven
approach.

5. The Smart Cities Mission requires smart people who actively participate in governance and
reforms. Citizen involvement is much more than a ceremonial participation in
governance. (Smart Cities, 2015, M0UD,Govt. of India.)

Conclusion
The Mission of developing 100 smart cities no doubt is an ambitious one yet the citizens and
the authorities through cooperation and serious effort can bring about drastic changes towards
the goal of a city with all the basic facilities of good living, employment opportunities, healthy
environment and good governance. The success of this mission depends on participation from all
quarters; it should not be looked upon as the sole responsibility of the government.