Smart Cities Mission in India

Syllabus: Prelims Unit V - Indian Economy and Development Administration in Tamil Nadu

Initial Vision and Launch

• The Smart Cities Mission was announced in June 2015.
• The goal was to develop 100 smart cities across India.
• These cities were envisioned as models of urban development.
• The mission is based on the Internet of Things (IoT) framework.

Key Components of the Mission

• Pan-city proposals include:
• IT-enabled services
• Mobility solutions
• Waste management systems
• Area-Based Development (ABD) focuses on:
• Retrofitting projects
• Redevelopment initiatives
• Greenfield projects
• Targeted focus on specific zones within cities

Governance Structure

• The mission bypassed local governments in the planning and execution process.
• Implementation was carried out through Special Purpose Vehicles (SPVs).
• SPVs are registered under the Companies Act.
• City councils were excluded from the decision-making process.
• The management of these SPVs followed a structure similar to private companies.

Case Study: Shimla Smart City

• Initial Budget: ₹2,906 crore.
• Funding Sources:
• Public-Private Partnership (PPP): ₹897.80 crore
• Municipal bonds: ₹101.77 crore
• External borrowings: ₹205.57 crore
• State and Union schemes: ₹348.49 crore
• Current Implementation:
• Total spent: ₹707 crore (24% of budget)
• Completed projects: ₹53 crore
• Ongoing projects: ₹654 crore

Implementation Challenges

• Basic amenities are still lacking in many areas.
• There has been poor utilization of funds.
• The expected contributions from PPP have not materialized.
• Traffic congestion has worsened.
• Non-motorized mobility has been neglected.
• There have been inappropriate expenditures (e.g., ₹2 crore on flower pots).