Recently issues were raised against the implementation of Smart City Mission in Shimla as it  bypassed local governments, relying on Special Purpose Vehicles (SPVs) managed as private entities, sidelining city councils in governance and decision-making.

About Smart City Mission

• A smart city is an intelligent city that integrates digital technologies into its networks, services and infrastructure making it more efficient and livable for the benefit of its inhabitants and business.
• According to the European Commission, smart city means:
  • Smart urban transportation networks
  • Upgraded water supply and waste disposal facilities
  • More efficient ways to light and heat buildings
  • More interactive and responsive city administration
  • Safer public spaces

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About Smart City Mission (SCM)

• Launch: The SCM was launched in June 2015 by the Government of India to develop 100 smart cities as models of urban development.
• Aim: To improve quality of life, promote sustainable development, and integrate technology for efficient urban governance.
• Nodal Ministry: The Ministry of Housing and Urban Affairs (MoHUA) 
• Objective: The smart cities initiative was based on the Internet of Things (IoT) with objectives to: 
  • Enhance core infrastructure and ensure a clean, sustainable urban environment.
  • Promote the use of smart solutions for governance and service delivery.
  • Improve mobility, water supply, sewage systems, and waste management.
• Components:
  • Area-Based Development (ABD): Focuses on retrofitting, redevelopment, and greenfield projects in specific city zones.

• • Pan-City Initiatives: Implements IT-enabled services across cities, such as intelligent traffic management and integrated governance systems.Special Purpose Vehicles (SPVs): Acts as implementation agencies, registered under the Companies Act, ensuring efficient project execution.
• Funding Mechanism:
  • Total allocation of ₹48,000 crore from the central government, matched by state governments and Urban Local Bodies (ULBs).
  • Additional funds raised through Public-Private Partnerships (PPPs), municipal bonds, and other innovative financing mechanisms.
• Extension : Initially planned to conclude by 2020, the mission was extended to March 2025.
• Current Status: As of 2024 Out of 8,016 sanctioned projects worth ₹1.64 lakh crore, 7,218 projects have been completed.
  • Integrated Command and Control Centres (ICCCs) have been operationalized in all 100 cities, enabling efficient monitoring and governance.

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Impact of SCM

• Digital Transformation: ICCCs have enhanced governance through real-time data analysis for traffic management, disaster response, and urban planning.
  • Example: In Ahmedabad, sensor-based water monitoring reduced leakages and added 50 million liters per day (MLD) to the supply.
• Infrastructure Development: Development of core infrastructure, such as roads, water supply, sewage systems, and solid waste management, has improved urban living standards.
  • Example: Indore’s gravity-based sewage network prevented 205 MLD of untreated sewage from polluting local rivers.
• Renewable Energy Integration: Promotes sustainability through projects like the Mudasarlova Reservoir Floating Solar Plant in Visakhapatnam, which generates 3,613 MWh of electricity annually, reducing carbon emissions by 3,000 tonnes.
• Economic Growth: Smart cities also position India as a global investment destination. By creating urban spaces that are competitive, inclusive, and sustainable, they attract both domestic and foreign investors.
  • By leveraging technology, SCM has positioned cities like Surat as hubs for global trade, boosting industries such as textiles and diamonds.
• Alignment with SDGs:SCM projects contribute significantly to 15 out of 17 Sustainable Development Goals (SDGs), including SDG 11 (sustainable cities) and SDG 6 (clean water).

Challenges in Implementation

• Mission Deadline Extension: Delays in project completion necessitated an extension to June 2024.
• Funding Shortfalls: Many cities failed to raise sufficient funds through PPPs or loans.
  • Example: Only 6% of projects were funded through PPPs instead of the recommended 21%.
  • Lakshadweep and Daman & Diu received less than 50% of allocated central funds.
• Governance Issues: Frequent transfer of SPV CEOs disrupted project execution.
  • State-level advisory forums were irregular, with some cities like Imphal and Amravati holding no meetings.
• Absence of Master Plans: 65% of urban entities lack master plans essential for determining land and infrastructure requirements.
• Execution Challenges: Inadequate citizen engagement and public participation hindered effective implementation.
  • For example Shimla’s redevelopment projects saw minimal progress, and funds were misallocated to non-essential items like flower pots.

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Way Forward

• Extension of SCM to more Cities : Focus on tier-2 cities within 100 km of state capitals, leveraging SPV expertise for urban development.
• Expand ICCCs’ Role: ICCCs should integrate functions like health, disaster management, and waste management to enhance urban resilience.
•  Strengthen Governance: Appoint dedicated CEOs with fixed tenures for better accountability. Foster transparency through regular advisory forum meetings.
• Enhance IT Infrastructure and Privacy Safeguards: Protect digital platforms from cyberattacks and ensure data privacy.
  • Develop a comprehensive framework for asset maintenance and upgrades.
• Promote Sustainable Urban Development: Align SCM with initiatives like AMRUT, Swachh Bharat Mission, and National Mission for Sustainable Habitat to ensure integrated urban development.
• International Collaboration: Share SCM’s sustainable development lessons with other countries, such as Bhutan’s Gelephu Smart City Project

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