Smart Cities Mission: Successes & Challenges

• Context (IE): The Smart Cities Mission is set to conclude in 2025, with some projects likely to extend beyond the deadline.

About Smart Cities Mission

• Smart Cities Mission was launched in 2015 to enhance urban infrastructure & livability in selected cities.
• Objectives: Develop cities with smart solutions while promoting economic & institutional growth, creating replicable urban models and ensuring accountability through Special Purpose Vehicles (SPVs).
• Ministry of Housing and Urban Affairs (MoHUA) oversees its implementation.

Smart Solutions in Key Areas of Development

• Smart governance: Using digital platforms to improve transparency and accountability.
• Smart mobility: Improving public transport and promoting non-motorized modes of transport.
• Smart energy: Enhancing energy efficiency, renewable energy generation, and smart metering.
• Smart water: Improving water supply, sanitation, and waste management.
• Smart environment: Reducing pollution, increasing green cover, and enhancing climate resilience.
• Smart health: Providing accessible and affordable healthcare services and facilities.
• Smart education: Improving access and quality of education and skill development.
• Smart safety: Enhancing safety and security through surveillance and emergency response systems.

Source: Twimg

Mission Strategy

• Cities were chosen through competitive process between 2016 & 2018, with 5 yrs to complete projects.
• Pan-City Initiative: Application of at least one smart solution city-wide.
• Three Models of Area-Based Development: Retrofitting (City improvement); Redevelopment (City renewal); and Greenfield development (City expansion)
• Integrated Command and Control Centres (ICCCs) have been implemented in all cities for real-time monitoring of urban services under the mission.

Implementation

• 100 Smart Cities selected through competitive federalism.
• Implementation through SPVs at the city level (50:50 equity between state/UT and ULBs).
• Initial duration: 2015-2020 (extended till 31st March 2025).

Funding & Financial Mechanism

• Centrally Sponsored Scheme: ₹48,000 crore over five years (₹100 crore per city annually).
• States/Urban Local Bodies (ULBs) must match central funding.
• Additional Financing Through: Municipal Bonds, Finance Commission Grants, Government Programs & Borrowings, PPPs.

Current Progress (As of July 2024)

• Total Projects: 7,970 projects worth ₹1,70,400 crore, of which 7,188 (90% of total) have been completed.
• 17 cities with 100% completion and 56 cities with 80%+ completion.
• Lagging Cities: 14 cities (primarily from Northeast, UTs, and hilly areas).
• Digital Transformation: 100 ICCCs operational for traffic, waste, health & disaster management.

Smart Cities Success Stories

• Ahmedabad: Sensor-based water monitoring saved 50 MLD water/day.
• Indore: Prevented 205 MLD sewage from entering rivers.
• Visakhapatnam: Floating solar plant saved $0.28 million & 3,000+ tons of CO2.
• Bhubaneswar: Launched a multi-modal railway hub & hi-tech traffic system.
• New Delhi: Implemented mini-sewerage plants, smart street lights & city surveillance.

Challenges & Issues

• Governance Gaps: SPVs operate independently, causing fragmented urban development.
• Weak Urban Local Bodies (ULBs): Insufficient technical expertise & human resources.
• Limited Private Investment: PPP projects contribute only 6% instead of the targeted 21%, affecting financial viability.
• Funding Shortfalls: Only 54% of planned loans secured; some states fail to provide their matching share.
• Execution Delays: Frequent CEO transfers in SPVs and inactive state-level advisory forums slow progress.
• Lack of Urban Planning: 65% of India’s urban areas lack master plans, leading to haphazard growth.
• Environmental & Land Issues: Delays in land acquisition, deforestation concerns, and weak environmental planning impact sustainability.
• Low Citizen Participation: Inadequate engagement with residents despite being key stakeholders in smart city projects.