CHAPTER 1

INTRODUCTION

1.1 INTRODUCTION

Urbanization accompanies economic development. A shift from a primarily agricultural economy to an industrial and service sector also results in urbanization. This is because urban areas provide the resources that the industrial and service sectors need. This trend of urbanization continues to take place. India will take a significant share of the growth in the world’s urban population. The share of the GDP from urban areas in India has been growing.

While the urban population is currently around 31% of the total population, it contributes over 60% of India’s GDP. It is projected that urban India will contribute nearly 75% of the national GDP in the next 15 years. A Global scenario shows that a country’s urbanization up-to a 30% level is rather slow but the rate of urbanization speeds up thereafter, till it reaches about 60-65%. India has an urban population of 31% and is at a point where the pace of urbanization will speed up. Due to this, we need to plan our urban areas effectively and efficiently. The relatively low base figure offers us an opportunity to create a favorable environment for creation of many times more employment opportunities and economic activities while improving the quality of life substantially. It also allows one to learn from good practices and mistakes made within as well as outside the country.

This being the context, the Government has decided on developing 100 Cities in the country. Different countries take different paths to development. While oil rich countries may adopt an energy intensive approach, others would adopt a more energy efficient growth path. In India, a developing country, there is an opportunity to choose the path to be taken. We have decided to take the low-energy path in view of environmental sustainability, global competitiveness, and energy utilization as a major part of the energy requirement will have to be imported.

1.2 OBJECTIVE OF THE STUDY

To study Infrastructure of smart cities in India. To study Instruments that make cities self-sustained. To study which cities are selected for smart cities project.

1.3 RESEARCH METHODOLOGY

To do a research always we use secondary source of data collection. Secondary source is the internet, magazines and reference books of the research.

1.4 CHAPTER SCAME

Chapter 1: Introduction

Chapter 2: Institutional infrastructure of smart cities

Chapter 3: Instruments that make cities self-sustained

Chapter 4: Selected smart cities

CHAPTER 2

INSTITUTIONAL INFRASTRUCTURE OF SMART CITIES

2.1 What is a City?

A city could mean different things to different people. It could be a design or utilities, housing or mobility and Latest technology etc. People migrate to cities primarily in search of employment and economic activities for a better quality of life.

Therefore, a City for its sustainability needs to offer economic activities and employment opportunities to a wide section of its residents, regardless of level of education, skills and income levels. In doing so, the City would need to identify its unique advantage and core competence in specific areas of economic activities and promote such activities by developing the required institutional, physical, social and economic infrastructures and attracting investors and professionals to take up such activities. It also needs to support the required skill development for such activities in a big way. This would help a New City in developing the required environment for creation of economic activities and employment opportunities.

Apart from employment, it is also important to offer decent living options to every resident. This would mean that it will have to provide a high quality of life, i.e. good quality but affordable housing, cost efficient physical, social and institutional structures such as adequate and quality water supply, sanitation, 24 x 7 electric supply, quality education, cost efficient health care, security, entertainment, sports, robust and high speed interconnectivity, fast & efficient urban mobility etc. The following three characteristics can be attributed to an efficient City:

- Competitiveness: refers to a city’s ability to create employment opportunities, attract investments, experts, professionals and people. The ease of being able to do business and the quality of life it offers determines its competitiveness.

- Sustainability: includes social sustainability, environmental sustainability and financial sustainability.

- Quality of Life: includes safety and security, inclusiveness, entertainment, ease of seeking and obtaining public services, cost efficient healthcare, quality education, transparency, accountability and opportunities for participation in governance.

2.2 PILLARS OF SMART CITY

Institutional Infrastructure (including Governance), Physical Infrastructure, Social Infrastructure and Economic Infrastructure constitute the four pillars on which a city rests. The center of attention for each of these pillars is the citizen. In other words a City works towards ensuring the best for its entire people, regardless of social status, age, income levels, gender, etc.

Institutional Infrastructure refers to the activities that relate to governance, planning and management of a city. The new technology (ICT) has provided a new dimension to this system making it citizen-centric, efficient, accountable and transparent. It includes the participatory systems of governance, e-governance, inclusive governance, the sense of safety and security and the opportunities for creativity.

Physical Infrastructure refers to its stock of cost-efficient and intelligent physical infrastructure such as the urban mobility system, the housing stock, the energy system, the water supply system, sewerage system, sanitation facilities, solid waste management system, drainage system, etc. which are all integrated through the use of technology.

Social Infrastructure relate to those components that work towards developing the human and social capital, such as the education, healthcare, entertainment, etc. It also includes performance and creative arts, sports, the open spaces, children’s parks and gardens. These together determine the quality of life of citizens in a city. It is also necessary that city promotes inclusiveness and city has structures which proactively bring disadvantageous sections i.e. SCs, STs, socially and financially backwards, minorities, disabled and women into the mainstream of development.

Economic Infrastructure for a city to attract investments and to create the appropriate economic infrastructure for employment opportunities, it has to first identify its core competence, comparative advantages and analyze its potential for generating economic activities. Once that is done, the gaps in required economic infrastructure can be determined.

2.3 INSTITUTIONAL INFRASTRUCTURE (INCLUDING GOVERNANCE)

The current governance structures do not focus on citizen participation. People do not get the feel of ownership of city. Therefore, there is a need for involving citizens in decision-making processes. Procedures are cumbersome and citizens often find it difficult to secure public services they seek. Further, responsibilities for different services are fragmented across multiple institutions, making the situation even more complex for any citizen. Besides, many of these institutions report to different departments of the State government and local bodies have little influence on them. For example, even within the transport system, metro rail, buses, roads, parking, traffic lights, street lights, etc. are dealt with by different institutions/departments.

Reforms in how our cities are governed are necessary as high quality governance, with a strong citizen say in decision making, is critical for the New Cities. Typically, the principle to be followed is “Governance by Incentives rather than Governance by Enforcement”. This would imply that people do the right things because they are good for society or there are incentives to do so and not due to the fear of penal action. However, a greater sense of respect for civic discipline needs to be brought in through deterrents to civic indiscipline. Also, decisions will need to be taken at the local level and with well-established processes through which citizens can actively participate in such decision making. However, it is to be ensured that all such decisions are taken without any arbitrariness, discrimination and subjectivity. This can be brought in by ensuring that all information is imparted on real time basis through infusion of technology and very strong Service Level Agreements (SLAs) so that human intervention is bare minimum.

In this context, it also needs to be recognized that management of cities comprise of multiple systems, all of which are closely connected in meeting human needs. A good City is one where each of these systems works in harmony and reinforces the usefulness of the other. Therefore, a comprehensive approach to the development of a city is essential. This requires that the current practice of working in silos needs to be broken down with greater institutional

integration, at least in planning and oversight. People are attracted to cities that provide all services well. Thus, while developing new cities, it is important to adopt a holistic approach rather than a sartorial approach.

2.4 NATURE AND EXTENT OF CENTRAL GOVERNMENT SUPPORT

2.4.1 Financial support

Huge investments will be needed. Current financial resources of the States and Cities do not permit this level of investment. Therefore, innovative methods of raising revenues will have to be developed by the States and Cities, taking into account some of the possibilities outlined earlier. These efforts will be supplemented by the Central Government through the Ministry of Urban Development and other Ministries responsible for different sectors, such as Health, Education, Power, Transport, IT, Communications, etc., by way of allocations specifically for the development of smart cities. The involvement of other ministries such as health, education, power, transport, IT, communications, housing, etc. is critical because all these services need to be available in a comprehensive and integrated manner. Fragmented enhancement of only some services will not prove adequately beneficial.

2.4.2 Policy support and legal backing

It is recognized that urban development is a state subject under the constitution of India. Yet the Central government plays an important supporting role in facilitating appropriate policies that provide a framework for urbanization. While we have a national urban transport policy framework, we don’t have a national urban policy framework. It would be appropriate for the urban transport policy to also fall within the framework on a national “urbanization policy”. Such a policy, which channels the growth of cities along a “Smart “trajectory, would be crucial for guiding the national government financial support to cities.

Existing legal frameworks and policies that regulate the urban sector need to be reviewed by the State and urban local bodies to see what changes, if any, are required. Few possible examples:

The “Development Acts” need to insist on a public transport master plan to be part of a land use master plan and must have the same legal backing as the Master Plan itself.

FAR norms need to be rationalized and made more granular rather than city wide, to allow very high densities to be interspersed with adequate green areas

The existing Urban & Regional Development Plans Formulation and Implementation Guidelines (URDPFI) guidelines need to be updated to reflect the higher standards expected in a smart city

The current standards for water supply, sewerage and drainage, etc. need to be reviewed to aim at higher standards

Framework related to investment by the private sector need to be reviewed so that a higher level of private investment in urban infrastructure becomes possible.

Framework for making changes in land use need to be reviewed and procedures simplified

2.4.3 Capacity Building

It is well recognized that the current capacity to take up such a large program is weak. It is also recognized that with the previous emphasis on rural development, a strong cadre of urban planners has not developed in the civil services. Developing 100 Smart Cities across the country will need a large number of professionally trained manpower and several decision support systems to be in place. Thus, there is a need for a large capacity building program that encompasses training, education, contextual research, knowledge exchange and a rich database. Investments in such a program will have a considerable multiplier effect and several times this amount can be easily saved if the capacity building program is meaningful and well implemented. A program of this nature benefits from economies of scale, as there will be a need to invest in designing programs, developing faculty, building databases as well as designing toolkits and decision support systems. Therefore, it would be advantageous if this is managed and coordinated by the Central Government instead of all States duplicating the effort. However, the role of the State Governments will remain important. Accordingly, the Ministry of Urban Development will take up a national program towards Capacity Building through

i) a Mother Institution which will be responsible for developing curriculum, standards, contacts and ensuring quality,

ii) Regional Institutions ( 5 to 8) which will ensure conduct of courses, adherence to standards, protocols etc.

iii) Training Institutions (about 50) which will be responsible for actual training and Capacity Building.

2.4.4 Approval process

Each aspiring city competes for selection as a smart city in what is called a ‘City Challenge’. There are two stages in the selection process. After the number has been indicated to the respective Chief Secretaries, as outlined in para 8 above, the State/UT will undertake the following steps:

Stage 1of the competition: Shortlisting of cities by States

The State/UT begins with shortlisting the potential smart cities on the basis of conditions

precedent and scoring criteria and in accordance with the total number allocated to it. The first stage of the competition will be intra-state, in which cities in the State will compete on the conditions precedent and the scoring criteria laid out. These conditions precedent have to be met by the potential cities to succeed in the first round of competition and the highest scoring potential smart cities will be shortlisted and recommended to participate in Stage 2 of the Challenge. The information sent by the ULBs in the forms has to be evaluated by the State Mission Director and the evaluation placed before the State-level High Powered Steering Committee (HPSC) for approval. The composition of the State HPSC is given in para 13 of the Guidelines.

The cities emerging successful in the first round of competition will be sent by the State/UT as the recommended shortlist of smart cities to MoUD by the stipulated date (to be indicated in the letter to Chief Secretaries). The State Government has to fill the and send with the recommended list. The MoUD will thereafter announce the list of 100 smart cities.

Stage 2 of the competition: The Challenge round for selection

In the second stage of the competition, each of the potential 100 smart cities prepare their proposals for participation in the ‘City Challenge’. This is a crucial stage as each city’s Smart City Proposal (SCP) is expected to contain the model chosen, whether retrofitting or redevelopment or Greenfield development or a mix thereof, and additionally include a Pan-City dimension with Smart Solutions. The SCP will also outline the consultations held with the city residents and other stakeholders, how the aspirations are matched with the vision contained in the SCP and importantly, what is the proposal for financing of the smart city plan including the revenue model to attract private participation. An evaluation criteria for the SCPs has been worked out by MoUD based on professional advice and this should act as guidance to the cities for preparing their proposal.

By a stipulated date, to be indicated by MoUD to the States/UTs, proposals will be submitted to MoUD for all these 100 cities. These will be evaluated by a Committee involving a panel of national and international experts, organizations and institutions. The winners of the first round of Challenge will be announced by MoUD. Thereafter, while the winning cities start taking action on making their city smart, those who do not get selected will start work on improving their SCPs for consideration in the second round. Depending on the nature of the SCPs and outcomes of the first round of the Challenge, the MoUD may decide to provide handholding assistance to the potential Smart Cities to upgrade their proposals before starting the second round.

2.4.5 Security and Safety

For any City Security and Safety are paramount. Each corner of the City will be monitored by centrally managed office. Special Israeli CCTV monitoring software will analyse suspicious moments across the city. This software is proposed for Mumbai City as well. It overcomes the need for a human to actually monitor each CCTV. This measure will ensure there will be not need of paramilitary marching in city, developing sense of intimidation amongst citizen.

2.5 PHYSICAL INFRASTRUCTURE

2.5.1 Urban Mobility

Our cities are faced with rapid motorization. This has led to severe congestion, deteriorating quality, increasing incidence of road accidents and a rapidly increasing energy bill. Walking and cycling have been rendered unsafe due to poor infrastructure and public transport has been inadequate. So far, urban transport planning has emphasized providing for the personal motor vehicle. Public transport systems have been planned in isolation with the result that a well-integrated multi-modal system has not come up. This has resulted in high cost facilities not giving the outcomes that were sought.

Ease of being able to move from one place to another is at the core of a “City”. Seoul, Singapore, Yokohama and Barcelona (all considered Smart Cities) have a sound transport system as the core of their “Smartness”. The transport system emphasizes walking, cycling and public transport as the primary means for mobility with personal motor vehicles being actively discouraged. In fact, smart cities lay considerable emphasis on the workability and cycling in the city. The pedestrian is given a place of prominence as every trip has a leg that involves walking. However, city need to look into the bottlenecks of road/rail networks also and wherever required underpasses, elevated roads, additional rail networks need to be put in place urgently. Cycling is one of the, most cost efficient and environmentally sustainable mode for commuting in cities. Many cities across the world have given emphasis to it and developed the required infrastructure for promoting cycling. Also programs like bicycle sharing such as Velib in Paris can be promoted to decongest the CBDs.

If cities are to be efficient engines of economic growth, it is important that goods are able to move from production centers to consumption centers at low cost and high speed. Therefore, a good freight movement system acquires importance.

Hence, improved mobility will involve three pronged approach whereby there are:

1. Improvements in public transport – Metro Rail, BRT, LRT, Monorail, Trams etc.

2. Improvements in infrastructure of other motor vehicles – ring roads, bypasses, underpasses, elevated roads, improvements in the existing road ways 3. Improvements in infrastructure for walking, cycling and waterways.

2.5.1.1 Personal rapid transit (PRT)

Personal rapid transit (PRT) systems tries to eliminate these wastes by moving small groups nonstop in automated vehicles on fixed tracks or guided paths. Passengers can ideally board a pod immediately upon arriving at a station, and can -with a sufficiently extensive network of tracks take relatively direct routes to their destination without stops. PRT is currently being used at Heathrow Airport and Masadar City. Also proposed at Amritsar airport by Punjab Government.

2.5.2 Reliable Utility Services

Reliable, adequate and high quality Utility services are critical in a City. Whether it is electricity or telephony or ICT services, they need to be very reliable and adequate. 24x7 services are necessary. For example, a minimum of 100 Mbps of internet bandwidth and wide availability of Wi-Fi will be very important features. It should be the right of every citizen to get these facilities on demand. Similarly, municipal services such water supply, drainage, solid waste management need to be of very high quality and available 24x7. Telephone services based on Direct-to-Home Fibre should be available for every household. A Smart City cannot have only a few hours of water supply a day or electricity that goes off for several hours or the streets littered with garbage. The general appearance of the city has to be pleasing and clean. The main utilities that need to ensure are the following:

2.5.3 Water Supply

Safe and adequate water supply is a public good as it has very large positive externalities. Access to water supply is important for all the urban residents and lack of safe water supply can keep the mortality rates high in general and among the poor in particular. It has been estimated that access to water increases the productive working hours of urban poor in general and the poor women in particular by 1.5 to 2 hours. Smart cities should therefore have adequate availability of piped water supply that also meets benchmarks of water quality, pressure, etc. across the city.

Dual water supply systems that serve the needs of drinking water and other needs would help in recycling water and conserving it. Adoption of new methods especially smart metering for reducing loss and energy consumption in water networks needs to be ensured. This is possible by installing sensors in the supply system that measure water consumption, water levels, and water flow rates on a real time basis. These models will help in not only identifying and localize leaks, it would also assist to optimize energy consumption in the network. In addition, smart water meters may be installed for measuring water consumption more efficiently and providing water customers with data to help them monitor their water usage and reduce costs. Technology such as WTP & STP are planned to be implemented for reuse and re-utilization.

2.5.4 Sanitation

Sanitation is important for all the urban residents. Lack of sanitation causes outbreaks of epidemics, health disorders and keeps the mortality rates high in general and among the poor in particular. It is well known that higher incidences of morbidity pushes low income households below the poverty line. It is therefore essential that cities should have a City Wide Sanitation Plan for all parts of the city. The Plan is expected to be based on the concept of Decentralized Sewerage and Solid Waste Management System. Also, each and every household should have a toilet so that no citizen needs to defecate in the open. Further, all commercial and other public buildings should have clean and hygienic toilets. There is a need for 100% recycling in the sanitation system. Idea is that not even a drop of waste water should go out of the local area (one such example of New MotiBagh Township in New Delhi). Moreover, only treated water should get into water body i.e. lake, pond, river etc.

2.5.5 Solid Waste Management

Waste management is the “generation, prevention, characterization, monitoring, treatment, handling, reuse and residual disposition of solid wastes”. Indian cities are facing many issues with regard to waste management, which include: 1. Absence of segregation of waste at source 2. Lack of technical expertise and appropriate institutional arrangement 3. Lack of proper collection, segregation, transportation, treatment and disposal system.

Cities which are not clean do not exhibit a smart character. Cities which are clean are perceived to be smart, providing a healthier environment and a better quality of life. Therefore, they attract people – both people who want to live and work in the city and those who want to invest in the city. The following strategies therefore need to be adopted:

1. Segregation of recyclable and non-recyclable waste as well as wet and dry waste at the source so that there can be 100% recycling of solid waste

2. Appropriate technology should be adopted for treatment of waste at decentralized locations Put in place an effective collection and disposal system

3. 3. Encourage use of products based on recycling of solid waste especially – power, compost, building material (based on cycling of debris & construction materials)

2.5.6 Storm Water Drainage

Lack of storm water drainage often exacerbates the sanitation problem in many Indian cities, especially during the monsoon months. Lack of storm water drains lead to water logging every monsoon and outbreak of vector diseases such as malaria, dengue and so on. Cities, therefore, need to adopt a storm water management approach. This would include preserving and maintaining the natural hydrological cycle, groundwater recharge, natural drainage system, etc. Provisions for storm water to feed lakes and water bodies would enable recycling of the storm water. For this purpose appropriate technological interventions should be adopted to improve the quality of water from storm water flows. It will help in conserving potable water and at the same time prevent water pollution. Many times storm water drains are connected to sewerage network which makes sewerage system ineffective. This needs to be checked meticulously.

2.5.7 Electricity

As per the Government of India statistics, nearly 94% of the households in urban areas have access to electricity; however, the availability and quality of the supply remains a concern. Smart cities needs to have universal access to electricity 24x7. This may not be possible with the existing supply and distribution system. The cities should, therefore, shift towards smart metering at the household level and the establishment of a smart grid and its integration with the renewable sources to meet the demand such as solar and wind energy. For this purpose the existing distribution system must be strengthened and power banking systems need to be established. Further, the focus should be on green buildings and green transport to reduce the need for electricity. Also, cities should strive towards achieving an integrated billing system for a variety of services such as electricity, water, gas, internet, house tax, etc. with a common customer care centre and user friendly payment platform for online payments. There would thus be a need to review the existing state policy and bring in the necessary changes wherever needed.

2.5.8 Internet and Telephone

A 100 Mbps internet backbone coupled with 100% coverage of the area by cell phone towers and a high level of telephone penetration will be essential in a Smart City as most services will have to be offered online. Local service providers should also have multiple service kiosks that can be accessed by people for evaluating public services and accessing public information. Fibre Optic connectivity to each home, Wi-Fi in all public places and educational institutions would be important features of a Smart City. This would need a transparent and efficient system of providing Right of Way by Municipal Authorities.

2.5.9 Urban Development

The rapid urbanization of cities has resulted in unplanned development and urban sprawl. Most of the cities in our country are marred by congested CBDs and deteriorating city core. It is

therefore essential that while planning for the smart cities, emphasis is given to planned development and decongestion of the CBDs.

Further, many policies governing urban areas are old and need to be reviewed in view of the changing needs of the city. The building bylaws are archaic and the provisions like parking space requirements and building heights etc. provided, do not meet the demand for the present day. Land in cities is at a premium and the existing FSIs does not permit development of high rises, which results in high cost of housing. To ensure availability of affordable housing for every citizen, the existing FSIs and bye-laws needs immediate revision. This would also ensure that Transit Oriented Development (TOD) is implemented along public transport corridors. This would have multiple benefits like financial viability of the transit system, reduction in use of personalized vehicles and cleaner environment etc. Government of India would assist all identified smart cities to develop City Development Plans based on ICT, GIS and Spatial Mapping.

2.6 Economic Infrastructure

For a city to attract investments and to create employment opportunities, it has to first identify its core competence, comparative advantages and analyze its potential for generating economic activities. Once this is done, the gaps in necessary infrastructure can be determined. This would comprise the following:

- Incubation centers

- Skill Development centers

- Industrial Parks and Export Processing Zones

- IT / BT Parks

- Trade centers

- Service Centers

- Financial Centers and Services

- Logistics hubs, warehousing and freight terminals

- Mentoring and Counseling services.

Economic Infrastructure would also depend on:

2.6.1 Financial sustainability

Services need to be financially sustainable so that there are no financial constraints to delivering quality services. However, in doing so, tariff structures adopted should be affordable for the poor and yet recover costs at higher levels as use. The revenue gaps can be bridged by

innovative means to raise and allocate resources to the service providers such as Purchasable FAR, Development Charges, New roads, underpasses, Metros, Elevated roads etc. Use of the private sector would be a good way of tapping efficiencies in delivery to reduce costs. Independent Regulators for electric supply, water supply, property taxes etc., need to be appropriately placed.

2.6.2 Establishing Incubators and Creations of Jobs

Creation of a start-up eco-system requires an incubator being set up and spreading the culture of innovative thinking and finding solutions to everyday problems through technological intervention.

Each city will house an incubator each and 1000 start-ups per incubator shall create at least 1000 jobs per year. This will result in 1 million jobs created per year and 10 million jobs in 10 years across these 100 cities through the incubators. The host institutes of incubators approved by DST, Government of India, maybe invited to setup incubators in the cities. Incubation and start-up ecosystems are still at a very nascent stage in India and the sustainability model is still being figured out. They require support from the Government for a 5 year period in the form of:

- Financial support for the host institute for each start-up incubated at the rate of ₨ 12,500 per month.

- Tax breaks and incentives for the incubators and incubated start-ups within smart cities.

- Supports and incentives for large organizations working with the incubators for setting up innovation zones that will provide technology support and market-access opportunities.

2.7 Social Infrastructure

Social Infrastructure would include the following: Education - The city should have quality educational facilities, both for schools and

higher education in every neighborhood. This can be achieved with e-education and digital content.

Healthcare - High quality healthcare facilities are important factors in making a city livable and attractive for people and businesses. This would necessitate creation of Electronic Health Record for every resident and adoption of telemedicine in every neighborhood.

Entertainment - Good entertainment facilities make the people in a city happy. Theatres, concert calls, auditoriums, cultural centres, open spaces and plazas allow opportunities for recreation, so important for healthy and happy living.

Good sports facilities – Children parks, stadiums, swimming pools, neighborhood sports complex, golf courses.

2.7.1 Parks and Recreation

Parks and recreational departments are largely neglected in Indian way of governance. The main work of this department is to plan, develop and maintain parks, gardens, playgrounds etc. in a city. It’s the high necessity for Indian cities to have huge parks, as less amount cities have it here. The problem of congestion and pollution always exists and is always increasing. A “central park” concept(huge trees intense parks which includes artificial lakes, ponds, green open spaces etc.) always helps a city in reducing air pollution, noise pollution and help citizens calm down (recreation). Moreover special parks like botanical parks, zoological parks, plant nurseries help bringing about the environmental/ecological balance in the urban area.

2.7.2 Health Infrastructure

India is at the crossroads of an exciting and challenging period in its history. Making

healthcare affordable and accessible for all its citizens is one of the key focus areas of the country today. While on one hand, India urban area lacks strong healthcare infrastructure, on the other hand, the country has several inherent weaknesses in its healthcare system. The health care delivery segment is dominated by the private sector in India, with 70% of the total delivery market in India catered to by the private sector.

2.7.3 Night Life

Global reports show safe Night Life contributes to socio-cultural development. Also it is de-facto that economic activities increase with it. Nigh t life utilises infrastructure that would otherwise remain idle like shops, eateries, trains, taxis, road, rails etc.

2.8 LIST OF SMART CITIES

Globalization, with trade liberalization measures and fast technological changes altering the relations of production, distribution and consumption, has very substantial effects on city development. Cities in India face the challenge of combining competitiveness and sustainable urban development simultaneously. This challenge is likely to have an impact on issues of Urban Quality such as housing, economy, culture, social and environmental conditions changing a city's profile and urban quality in its composition of factors and characteristics. This project deals with medium-sized cities and their perspectives for development. Medium-sized cities, which have to cope with competition of the larger metropolises on corresponding issues, appear to be less well equipped in terms of critical mass, resources and organizing capacity. To enforce an endogenous development and achieve a good position, even these cities have to aim on identifying their strengths and chances for positioning and ensure and extend comparative advantages in certain key resources against other cities of the same level.

The focus of selection of cites lies on medium-sized cities. However, there is no common definition of a medium-sized city. For this study we chose to understand medium-sized cities as cities often also understood as “second cities”, cities which are mainly not recognised very well in India but often of crucial importance on a national and regional scale, Also we have assumed

that road connectivity with various major cities are present. As a starting point we chose to focus on cities with a Statistical population Average of 11,36,231 inhabitants.

LIST OF SMART CITIES

S.No. Name of State/UT No. of cities shortlisted Names of Cities Population of cities

1. Andaman & Nicobar Islands 1 1. Port Blair 1,40,572

2. Andhra Pradesh 31. Visakhapatnam 18,78,9702. Tirupati 3,74,2603. Kakinada 3,50,986

3. Arunachal Pradesh 1 1. Pasighat 24,6564. Assam 1 1. Guwahati 9,62,334

5. Bihar 31. Muzaffarpur 1,21,8902. Bhagalpur 3,93,7243. Biharsharif 4,10,210

6. Chandigarh 1 1. Chandigarh 10,55,450

7. Chhattisgarh 21. Raipur 10,47,3892. Bilaspur 3,65,579

8. Daman & Diu 1 1. Diu 23,9919. Dadra & Nagar Haveli 1 1. Silvassa 98,032

10. Delhi 1 1. New Delhi Municipal Council 2,49,998

11. Goa 1 1. Panaji 1,00,000

12. Gujarat 6

1. Gandhinagar 2,92,7972. Ahmedabad 55,77,9403. Surat 44,67,7974. Vadodara 17,52,3715. Rajkot 13,23,3636. Dahod 1,30,530

13. Haryana 21. Karnal 3,02,1402. Faridabad 14,14,050

14. Himachal Pradesh 1 1. Dharamshala 22,58015. Jharkhand 1 1. Ranchi 10,73,42716. Karnataka 6 1. Mangaluru 4,84,785

2. Belagavi 4,88,2923. Shivamogga 3,22,480

4. Hubballi - Dharwad 9,43,8575. Tumakuru 3,05,8576. Davanegere 4,35,128

17. Kerala 1 1. Kochi 6,01,57418. Lakshadweep 1 1. Kavaratti 11,210

19. Madhya Pradesh 7

1. Bhopal 19,22,1302. Indore 21,95,274

3. Gwalior 11,59,0324. Jabalpur 12,16,445

5. Satna 2,80,2226. Ujjain 5,15,2157. Sagar 2,73,296

20. Maharashtra 10

1. Navi Mumbai 1,119,0002. Nashik 14,86,0003. Thane 18,41,000

4. Greater Mumbai 1,24,00,0005. Amravati 7,45,000

6. Solapur 9,52,0007. Nagpur 24,60,000

8. Pune 31,24,0009. Kalyan - Dombivali 15,18,000

10. Aurangabad 11,65,00021. Manipur 1 1. Imphal 2,86,24322. Meghalaya 1 1. Shillong 3,54,32523. Mizoram 1 1. Aizawl 2,91,00024. Nagaland 1 1. Kohima 1,07,000

25. Odisha 21. Bhubabeshwar 8,40,834

2. Raurkela 3,10,97626. Puducherry 1 1. Oulgaret 3,00,104

27. Punjab 31. Ludhiana 16,18,8792. Jalandhar 8,68,1813. Amritsar 11,55,664

28. Rajasthan 4

1. Jaipur 30,73,3502. Udaipur 4,75,150

3. Kota 10,01,3654. Ajmer 5,51,360

29. Sikkim 1 1. Namchi 12,19030. Tamil Nadu 12 1. Tiruchirapalli 9,16,674

2. Tirunelveli 4,74,8383. Dindigul 2,07,327

4. Thanjavur 2,22,9435. Tiruppur 8,77,778

6. Salem 8,31,0307. Vellore 5,04,079

8. Coimbatore 16,01,4389. Madurai 15,61,12910. Erode 4,98,129

11. Thoothukudi 3,70,89612. Chennai 67,27,000

31. Telangana 21. Greater Hyderabad 67,31,7901. Greater Warangal 8,19,406

32. Tripura 1 1. Agartala 4,00,004

33. Uttar Pradesh 12

1. Moradabad 8,87,8712. Aligarh 8,74,408

3. Saharanpur 7,05,4784. Bareilly 9,03,668

5. Jhansi 5,05,6936. Kanpur 2,76,348

7. Allahabad 11,12,5448. Lucknow 28,17,1059. Varanasi 11,98,491

10. Ghaziabad 16,48,64311. Agra 15,85,704

12. Rampur 3,25,31334. Uttarakhand 1 1. Dehradun 5,87,971

35. West Bengal 4

1. New Town Kolkata 36,5412. Bidhannagar 6,33,704

3. Durgapur 5,71,0004. Haldi 2,72,000

2.9 FINANCING SMART CITIES

The High Power Expert Committee (HPEC) on Investment Estimates in urban infrastructure has assessed a Per Capita Investment Cost (PCIC) of Rs. 43,386 for a 20 year

period. Their estimates cover water supply, sewerage, sanitation and transportation related infrastructure. Using an average figure of 1.0 million people in each of the 100 new cities, the total estimate of investment requirements for the services covered by HPEC comes to Rs7.0 lakh crores over 20 years. This translates into an annual requirement of Rs. 35,000 crores.

However, it is expected that most of the infrastructure will be taken up either as complete private investment or through PPPs (Public-Private Partnerships). The contributions from the Govt. of India and States/Urban Local Bodies will be largely by way of Viability Gap Support (VGF).

In addition to the budgetary resources available with various levels of government, additional resources would need to be leveraged for the sector from both domestic and overseas investors.

As an option to leverage such resources for the municipal sector, the Central government will explore the possibilities of establishing a Fund, which would blend grant funds from Central Government, borrowings from multi-lateral and bi-lateral agencies and bonds subscribed by national and state level land development agencies. Similarly, States and Cities may like to establish such Funds at their level also. Other financing sources could include the Pooled Municipal Debt Obligation (PMDO) announced in the budget, Real Estate Infrastructure Trusts (REITS), Infrastructure debt funds (IDFs), tax-free municipal bonds, PPPs etc.

To fully realize the potential of a New City, investments will be required in affordable housing, 24x7 electricity, integrated ICT services, education, cost-efficient health services, recreation and sports facilities in every neighborhood, cultural facilities, public parks, botanical gardens etc.

Cost-efficient efforts of the Ministry of Urban Development will thus be supplemented by other Ministries, such as Housing and Urban Poverty Alleviation, Health, Education, Power, Environment & Forests, ICT, Culture, Sports, Surface Transport etc.

Of the funds allocated to each New Cities by the Central Government, roughly 60% will be earmarked for investment in infrastructure and 10% for e-governance initiatives. The remaining funds will be in the form of equity contribution of the government in two integrated township projects (in partnership with a private developer), as well as one Greenfield project and one redevelopment project.

In addition, it is expected that investments of Rs 5,000 cores may be required as an initial investment to be provided for proposed 100 new cities to prepare Reference Frameworks based on Citizen Engagement, the City Development Plans based on GIS/Spatial Mapping, integrated ICT ecosystems, Master Plan to ensure successful implementation of the scheme. This would also include setting up of a PMU (Power Management Unit) at the State and ULB level. Proper planning and a holistic approach based on citizen engagement will be necessary.

CHAPTER 3

INSTRUMENTS THAT MAKE CITIES SELF-SUSTAINED

1. ENERGY EFFICIENCY

Energy concerns are also a key feature of “Cities Self-sustained”. Energy efficient practices are adopted in transportation systems, lighting and all other services that require energy. Tariff structures are such that conservation has incentives. Awareness programs lead to a culture of conservation. Good areas to focus energy efficiency measures would be the building material used, the transport system, sewerage and water supply systems, street lighting, air-conditioning systems and energy consumption in buildings.

2. SMART GRID

A smart grid is an electricity network that uses digital and other advanced technologies to monitor and manage the transport of electricity from all generation sources to meet the varying electricity demands of end-users. Smart grids co-ordinate the needs and capabilities of all generators, grid operators, end-users and electricity market Stakeholders to operate all parts of the system as efficiently as possible, minimizing costs and environmental impacts while maximizing system reliability, resilience and stability.

Smart grids include electricity networks (transmission and distribution systems) and

interfaces with generation, storage and end-user.

3. DEMAND MANAGEMENT

While enhancing supply to meet the demand is important, Cities would also lay special emphasis on demand management, by creating incentives for savings and disincentives for excessive consumption. This could be by way of rate structures that are affordable and low levels of consumption, but increase steeply as more is consumed. For transport systems the demand management efforts will be such that they promote the use of non-motorized modes of travel or public transport and discourage personal motor vehicles. They also promote shorter trip lengths by improved integration of land use and transport plans and mixed use planning, where residential and commercial areas are well interspersed.

4. IMPROVED ACCESS TO INFORMATION

A very important feature of all smart cities is good citizen access to information. Whether it is regarding city specific data or the measures being taken by municipal bodies or information relating to various service providers such as transport and similar information relevant for potential investors has to be conveniently available. This could be through multiple channels – internet, mobile apps, radio, TV, print media, etc.

5. ENVIRONMENTAL SUSTAINABILITY

Pollution in our cities is growing at an unprecedented pace. As per the WHO report published in 2014, our cities are amongst the most polluted ones in the world. This has resulted in a high rate of air borne diseases in all age groups. To create a more live-able and healthy environment, it is therefore important that new cities that are planned, are environmentally sustainable. This would mean not only improving the air quality but also reducing wastage of water, electricity, fuel etc. Steps have already been taken in this regards, however much more needs to be done. Star rating is being done for electrical appliances and in the building industry. All vehicles should also be star rated to indicate their energy efficiency. Also industries should be given incentives to reduce their carbon emissions.

6. USE OF CLEAN TECHNOLOGIES

As per the WHO report, Indian cities are amongst the most polluted in the world, creating severe health hazards. The trend needs to be reversed by promoting the use of clean technologies that harness renewable materials and energy sources and have a lower smaller environmental footprint. In smart cities buildings, transport and infrastructure should be energy efficient and environmentally benign.

7. USE OF ICT

The extensive use of ICT is a must and only this can ensure information exchange and quick communication. Most services will need to be ICT enabled, and this often helps reduce the need for travel. The ability to shop on-line or book tickets on-line or converse online is very powerful ways of reducing the need for travel, thereby reducing congestion, pollutants and energy use. An extensive use of ICT enabled services will need a sound communications backbone. In this context, it is important to note that ICT is not the “end” but only the “means” to an “end” – the end being improved service quality and information availability.

8. PARTICIPATION OF THE PRIVATE SECTOR

PPP allows Government to tap on to the private sector’s capacity to innovate, invent and bring in efficiency. Greater involvement of the private sector in the delivery of services is another instrument as it enables higher levels of efficiency. However, there 20 are a few concerns that need to be addressed. These are defining the scope properly, dispute resolution mechanism at local level, designing of PPP Projects so that enough flexibility is available while ensuring 100% transparency and accountability, shortening the procurement cycle and due recognition to quality rather than going in for L-1 only. Given the knowledge base that exists in

such agencies, as well as others in the country, it would be important to involve them actively in the process of designing smart cities hand holding the city/ state government in coming up with visionary plans. It is therefore proposed to take advantage of this capability in a structured manner. Detailed guidelines for doing so will be developed.

9. CITIZEN PARTICIPATION

Citizen consultation and a transparent system by which citizens can rate different services is yet another instrument for improving performance. Making these ratings openly available for public scrutiny creates a powerful incentive for improved performance and a disincentive for poor performance. A city also communicates well with its people and enlists their support in everything it is doing. The culture of working in a closed environment needs to end as people are often the biggest support base for any initiative a city takes up, if they have been informed of the efforts and the reasons for the same. Social pressure on other citizens can often remove resistance and facilitate a greater degree of civic discipline. For citizen friendly city and IT based platform will be created and involvement of social media will be maximum. A 24x7 call centre will be established at each ULB/Parastatal.

10. SMART GOVERNANCE

The existing government setup in the ULBs(Urban Local Bodies)/parastatal is rather fragmented with each department working in silos. The result of this is lack of coordination which is reflected in form of poor services to the citizens. Therefore, ULBs/parastatal would need to make effective use of ICTs in public administration to connect and coordinate between various departments. This combined with organizational change and new skills would improve public services and strengthen support to public. This will mean the ability to seek and obtain services in real time through online systems and with rigorous service level agreements with the service providers.

CHAPTER 4

SELECTED SMART CITIES

4.1 INTROUCTION

The government announced the names of the first 20 urban areas that will be developed as smart cities.

"Implementation of smart cities plan will showcase integrated planning. The investment of Rs 50,802 crores has been proposed in selected smart cities and towns during the five-year period."There are five capital cities among the 20 smart cities chosen”. A consortium of only Indian companies was chosen for plans of nine cities from the 20 cities chosen, added.

The urban development ministry received proposals for 97 cities from state governments.The selected cities will be equipped with basic infrastructure, efficient urban mobility and public transport, IT connectivity and e-governance mechanisms. In the future, the government plans to announce 40 cities each to be developed as a Smart City.

List of 20 Smart Cities Selected in First Round

S. No. Name of State/UT Names of Cities Shortlisted

1 Odisha Bhubaneswar2 Maharashtra Pune3 Rajasthan Jaipur4 Gujarat Surat5 Kerala Kochi6 Gujarat Ahmedabad7 Madhya Pradesh Jabalpur8 Andhra Pradesh Visakhapatnam9 Maharashtra Sholapur10 Karnataka Davangere11 Madhya Pradesh Indore12 New Delhi New Delhi13 Tamil Nadu Coimbatore14 Andhra Pradesh Kakinada15 Karnataka Belagavi16 Rajasthan Udaipur17 Assam Guwahati18 Tamil Nadu Chennai19 Punjab Ludhiana

20 Madhya Pradesh Bhopal

4.2 IMPACT ON REAL ESTATE

The growing rate of urbanization and need to improve the quality of life in a city environment propelled the Government of India to start focusing on the smart cities concept. Therefore, the current government announced its plan to set up 100 smart cities across the country. The cities with ongoing or proposed smart concepts include: Gujarat International finance Tec-city (GIFT) and Ahmedabad in Gujarat; Aurangabad in Maharashtra; Kochi in Kerala; Manesar in Delhi NCR; Krishnapatnam in Andhra Pradesh; Ponneri in Tamil Nadu; Khushkera in Rajasthan; and Tumkur in Karnataka.

Most of these cities will comprise of special economic zones, or investment regions, with modified tax structures and regulations to make it ripe for investment from foreign countries/companies. One of the core components of a smart city is sustainable living and offering better quality of life to the entire population. This includes developing more affordable options, mainly housing. Smart affordable housing consumes utilities resourcefully (e.g. power and water) and would enable a majority of people to lead a comfortable life while conserving the environment.

4.2.1 Opportunities for real estate developers

The government’s move to spend $15.3 billion on smart cities will have a strong positive impact on the real estate sector. Developers will be able to offer new projects in the upcoming cities boosting the regional, social and economic infrastructure and creating new jobs. Currently, the real estate sector contributes around six percent to India’s GDP. With the government’s vision of building 100 smart cities, many expect this share to increase to 1012 percent by 2022. In terms of market value, the real estate market in India is expected to increase seven times by 2028 to reach $853 billion from $121 billion in 2013. This growth in the real estate industry is also expected to boost 250 other ancillary businesses, thus contributing to the overall growth of the economy.

The smart cities concept around Information and Communication Technology (ICT) services, along with the social conveniences, is making this space very appealing, in particular to real estate companies looking to collaborate with the service sector. The upgraded technological and commercial spaces that offer services such as high speed internet, smart work stations, automated systems etc. in addition to competitive rates, will push enterprises to shift focus from their existing locations to newer ones. Real estate developers in smart cities will also need to contemplate varied housing needs. It will become critical to provide suitable and affordable housing options along with a comprehensive development trajectory proposed for each city.

4.2.1 Real estate developers operating approaches in smart cities

Real estate developers that incorporate ICT in their projects have an added advantage since it provides additional value that helps to promote and command a sale premium. When implementing ICT solutions, the project requires the involvement of five principal stakeholders based on the scale of a project: technology provider, facility developer, building occupants, property manager and Government. Examples of two ICT operating approaches used by developers in smart cities are:

The System Integrator (SI) procures hardware from the technology vendor. The SI then integrates, sets up the infrastructure and manages the system on behalf of the real estate developer. The required investment is made by the real estate developer and costs are bundled and eventually passed on to the customer as a value add when the real estate is purchased.

Similar to the above, the SI procures hardware from the technology vendor, integrates and sets up the infrastructure, and manages the system. The former funds the capital investment on hardware required for deployment of ICT and markets automation services to customers. Revenue generated from automated products is shared between the SI and real estate developer. The SI generates additional revenue by maintaining these systems.

CONCLUSION

Associate the idea of smart city, with the Citizenship smart, since they are who must design, use and interpret it to make intelligent the city. The Innovation and social participation is essential. Open Government further E-government: putting citizens at the center of the processes.

The smart organization of all that concerns citizens (knowledge, talent, innovation,

governance, strategical dialog, etc...) taking advantage of the existing resources. The possibilities of connection and interactuation of the cities with the physical world are now easier and more immediate with the new technologies, it has opened a lot of areas to explore: mobility, energy, prevention.

Six main axes: intelligent economy, smart mobile, smart environment, smart Citizenship, smart way of life, smart governance. Being an Open Data, so that data and information are accessible to Citizenship to innovate in the management and participations systems. Promote governance, transparency, quality service, improved energy system, mobility ... projects to be more likely to be effective, in social and economics terms.

Identify needs of citizens to improve the quality of life, using cost-benefit criteria

Structuring a city strategy to interconnect all proposals focused to the consecution of common goals, tailored to the needs of the Citizenship, to improve the quality of life, etc. Efficient and sustainable response to the needs, and the capacity of the environment to evolve. The balance harmonic development of cities based on the wishes of the citizens is what makes it smart.

The government and real estate builders are working together to upgrade infrastructure and offer a better standard of living. The implementation of technology may pose initial challenges for builders, but the increasing demand for technologically advanced properties, coupled with consumers’ readiness to pay a premium, will definitely produce an advantage for those which offer comfort-enhancing solutions.

However, many cities in India face hurdles when it comes to teamwork and transparency between the citizens and the administrative authorities. A smart governance system should be put in place to support collaboration between the two sides so improved services can be offered and more active participation from citizens can be realized.

BIBLOGRAPHY

Website:

http://www.blueoceanmi.com/admin/CMS/news/155_SmartCitiesinIndiaImpactRealEstate.pdf.

http://www.smartcitiesprojects.com/tag/list-of-20-smart-cities/

http://smartcities.gov.in/

http://www.smartcitiesindia.com/

http://www.smartcitieschallenge.in/

Articles:

Arka Bhattacharya: Smart Cities: What are they? : The Hindu: January 26, 2016.

Kshitij Anand: Top fourteen stocks that are likely to benefit from PM Narendra Modi's Smart City mission: Economic Times: June 27, 2016.

Aman Sharma: Germany to develop Kochi, Coimbatore, Bhubaneswar as smart cities: Times of India: March 7, 2016.