1) The document summarizes a workshop held in Jaipur, Rajasthan on revenue generation and procurement strategies for smart cities.
2) It discusses various challenges cities face in developing smart city plans and initiatives underway in Rajasthan such as housing, sanitation, and renewable energy projects.
3) The principal secretary of Rajasthan outlined projects worth over Rs. 10,000 crore being implemented in the state related to housing, sanitation, water and energy.
2. 2
I
nterestingly, every existing city, which will retrofit under
the Central government’s ambitious programme of Smart
Cities, has been engulfed with challenges.
But as they say,“every challenge brings an
opportunity”; the advent of Smart Cities in the country seems
to be a major boon for citizens.This is mainly because, when
an entire city is retrofitted, the citizens may be tasting a new
wine in an old bottle, but the end results are likely to be
better than the bitter pills they were swallowing earlier.
In a recently concluded Smart Cities workshop
—“Revenue Generation and Procurement Agenda”—
by the Smart Cities Council India, decision makers and
solution providers closely examined what cities should do
today in order to enable a vibrant city operating platform.
This workshop also examined what needs to be put in place
in order to capitalise from innovation in other cities.The
workshop was a great learning experience and threw up many
opportunities for the Council’s partners.
Inaugural session
The inaugural session was an amalgamation of profound
ideas from Pratap Padode, Founder & Director, Smart
SMART CITIES WORKSHOP: REVENUE
GENERATION AND PROCUREMENT AGENDA
How do you unleash innovation in your city? How can you benefit from innovation in other
cities? Cities that can enable vibrant business ecosystems and find the best ways of serving
their citizens will succeed in digital transformation.There is a digital divide between cities
that make the right choices today versus cities that are unaware of the opportunities or
oblivious to the risks.
From L to R: Pratap Padode, Founder & Director, Smart Cities
Council India (SCCI); Dr Manjit Singh, Principal Secretary,
Government of Rajasthan and Purshottam
Biyani, Director-Local Bodies, Government of
Rajasthan in discussion.
Urban profile:
urban population in the
with population of 1 lakh
& above
in the State
Major initiatives:
-
nation and Urban Trans-
-
-
Phase IV.
Road Under Bridges
Projects
Raj” Project
-
3. From L to R:Anil Singhal, Superintendent Engineer, Jaipur Smart
Mission Ltd; Priyavrat Pandya, Municipal Commissioner,Ajmer
Municipal Corporation;Arunkumar Hasija, Commissioner, Jodhpur
Municipal Corporation; Pratap Padode, Founder & Director, Smart
Cities Council India (SCCI); Sanchita Bishnoi,Add. Director,
CMAR, Jaipur in panel discussion
Solid Waste
Management
(SWM)
preparation
Transportation of waste
started in 2010 wards in
plant in other cities in
progress.
containers.
levied for Solid Waste
increase revenue.
Cities Council India (SCCI), and a realistic picture of
India’s Smart City plan was presented by Purshottam Biyani,
Director-Local Bodies, Government of Rajasthan. The
workshop witnessed a full house,packed to capacity.
emphasised on the need for smart and quick solutions for
implementing Smart City projects. Padode also highlighted
the need for sustainable projects and a mechanism in
urban local bodies for revenue generation. In his address,
Padode pointed out the need for error-free and transparent
procurement strategies by the newly formed Special Purpose
Vehicles, created by winning Smart Cities.
A session which witnessed a free flow of views was
hosted by Dr Manjit Singh, Principal Secretary,
Government of Rajasthan, who cleared the air on what
exactly does the Smart City concept mean for a state like
basic infrastructure, where a city can minimise the losses on
4. 4
public utilities, and at the same time gain maximum from it.
Also, his remark on the need for sustainable projects depicted
the impeding challenges that stand before various other cities
in India.
financial requirement for implementing 100 per cent water
supply, sewerage and drainage system, green areas and
improvisation of public transport, would be not lesser than Rs
15,000 crore.”
Panel discussion: Smart City
Development Plan
This session gave an opportunity to city authorities for
discussing the challenges and opportunities that they are
facing while developing a city development plan.
Anil Singhal, Superintendent
Engineer, Jaipur Smart Mission Ltd, was of the opinion
common in nature. In fact, most of the challenges are on the
roads and suggested that for easy movement of vehicular
traffic, road width, instead of length, should be increased.
digitisation front, he suggested that all project functional areas
should be integrated under one command centre for better
monitoring, management, and cost control.
corporations face similar issues, the city of Jodhpur has a
different challenge to tackle — increasing ground water
Anil Singhal,
Superintendent
Engineer, Jaipur Smart
Mission Ltd
Priyavrat Pandya,
Municipal Commissioner,
Ajmer, Municipal Corporation
5. 5
levels.According to Arunkumar Hasija, Commissioner,
Jodhpur Municipal Corporation, the situation is mainly
due to lack of water disposal systems and interconnection of
drainage system in the city, which has led to the ground water
level increasing to 12 metres.And since the city receives 200
mld water supply every day, and is likely to get an additional
200 mld in the near future, it looks like the ground water
situation would spill over in coming days.
all set to tackle this issue.The municipal corporation roped in
Corporation to build a four-way underground tunneling system
that can divert the sewage and drainage water to the collecting
point, and enable the same to be treated for further use.
instead of increasing road length, the municipal corporation
should construct signal-free elevated roads that can stretch up
of an SPV will not be fulfilled unless it has absolute power with
job,and importantly,he has to manage the existing basket of
projects along with the new ones in the pipeline.
Priyavrat Pandya, Municipal Commissioner,Ajmer
Municipal Corporation, had a different challenge to face
in his corporation.According to him, unless and until a
corporation has an efficient citizen engagement programme,
no plan would work properly. Sharing his experience, the
commissioner mentioned that when Ajmer first submitted
its Smart City proposal without any involvement of citizens,
they submitted the fresh proposals, around 2.69 lakh citizens
participated in the Smart City proposals.
In the citizen engagement programme, Pandya said, the
AMRUT 2015-2020
projects in Bhiwadi,Alwar,
& Sikar
Swachh Bharat
Mission:
Achievements:
Application
Community Toilets- 1,900
Target:
4,91,105, Community
6. 6
making it the first civic priority, giving it more importance
than initiatives like solid waste management.The next to
remaining suggestions were for safety and security, and quality
water supply.
How to generate revenue
This seems to be a big question for every urban local
solve this impeding issue. In a session,“Revenue Generation
Strategies for smarter development of the city”, the private
players gave solutions for revenue generation projects in
property tax, water management, waste to power, renewable
energy, smart parking, e- governance, smart lighting and water
city authorities understand innovative ideas for maximising
revenues in the cities through projects and strategies, inclusion
of PPP in revenue generation, etc.
In his session, Manik Sethi, Manager-Strategic
Marketing,Thomson Reuters, presented an integrated
land administration solution. In his brief presentation, he
helps provide governments foundational level automation
of internal office functions.Also, with this solution, a city
corporation can manage land & property ownership rights,
duty collection.
Interestingly, Sethi showcased a comparative analysis of
city of CapeTown, South Africa, three years back.According
7. can only happen, as explained by Sethi, through a citizen
engagement programme.
Dr Niraj Prakash, Director-Applications
Sales Consulting, Oracle India, explained the digital
intervention process in the form of an example that the
single point technology intervention rather than cities
developing separate solutions for their Smart City plans.
According to him, a state must create a single digital hub
and its services should be made available to all present and
particular public utility service.
In his session, Rushab Shah, Partner, Responscity,
government authority in the audience raised concerns over
irregular property tax collection, inadequate surveys, lack of
competent tax collecting staff and conflict between public
digital infrastructure to overcome these impediments, on the
lines ofVapi, Gujarat where every house has been equipped
digital address.
Procurement strategies and process
This session discussed procurement strategies with focus
on integrated development and aggregation, e-auctioning,
e-procurement, specification, standardisation, technology, life-
cycle costing, transparency, governance and specifications.
As far as efficient project procurement is concerned, the
Central government has advised winning corporations to
Officials from Rajasthan
Government shared their views
during the workshop.
8. highlighted the Central government’s strategy to form a joint
venture between Indian and foreign consultants who have the
experience in implementing Smart City projects.
country.And by doing so, the capacity building of the Indian
companies can also increase.
Saravana Kumar, the CEO of Jaipur Smart Mission,
a newly formed SPV, suggested that municipal corporations
various case studies on technical solutions that have been
applied in other cities.
Devesh Shukla, Business Development &
Solution Sales, Public Sector, Microsoft emphasised
on the monetisation of procurement which is likely to take
place in the entire Smart City plan. Shukla explained the
importance of using ICT for procuring materials for road
project implementations and to improve transparency in the
overall process.
In his detailed presentation, Rajeev Dholakia,AVP-
Smart Cities, Essel Infra Projects, suggested three
procurement models to the august gathering. In his remarks,
management and financial organisation. In addition, he
emphasised that the SPV should have strong monitoring
bundling of a fewer number of contracts to help minimise
managerial tasks at the SPV level and to improve contract
management.
9. 9
GokulVenkatraman, Business
Development Leader, Owens Corning, was of the
opinion that the procurement risk can be minimised by
proper material selection.
The road ahead
At the end, cities in India are currently under quick
transition towards a low carbon environment, high
quality of living, and resource efficient economies. Urban
performance depends not only on the city’s endowment of
hard infrastructure, but also on the availability and quality of
knowledge communication and social infrastructure.There is
a growing importance of Information and Communication
profiling the competitiveness of cities.
Information and communication systems play a critical
role in building Smart Cities and supporting comprehensive
wide range of enabling information and communication
technologies, including cloud and network infrastructure,
wireless and sensing technologies, mobile crowdsourcing,
social networking, and big data analytics for Smart Cities.
ICT brings together citizens and integrates
technologies and services such as transportation, broadband
communications, buildings, healthcare, and other utilities.
Advanced communication and computing techniques can
facilitate a participatory approach for achieving integrated
solutions and creating novel applications to improve urban life
and build a sustainable society.
The main purpose of this workshop was to bring
together decision makers and solution providers in the field
of systems, networking and communications, to discuss major
challenges, research problems, and potential applications to
support Smart Cities and urban informatics.
Date: 1 July 2016
Venue:
Jaipur, Rajasthan
The workshop was attended
by IT companies, utility
companies, government officials
and more.
10. 10
T
he Rajasthan government has taken a lot of
initiatives in the last couple of years on many
fronts that include Swachh Bharat Mission, Smart
City Mission,Atal Mission for Rejuvenation and
UrbanTransportation (AMRUT), GIS-based mapping project,
Housing for All, HRIDAY, National Urban Livelihood
Mission, urban infrastructure projects, sewerage & water
supply projects, e-governance and energy-efficient street
lighting project.
To begin with, our Smart Raj Project is here to improve
the delivery of government services to citizens and business.
This is a state-wide e-governance project initiated by the
present government to cover all urban local bodies (ULBs)
and their municipal services.The government has allocated
Rs 125 crore to improve service delivery mechanism,
transparency in governance and better information
management covering all ULBs.We expect this to be
completed by March 2018.
Under the Smart Raj project, we have included 23 IT
modules that will take care of all the municipal transactions,
building permissions and plans, fire safety NOCs, and so on.
The Smart Raj project will be integrated on a GIS platform
under GIS-mapping project.We have also deployed a state-
“WE ARE DEPLOYING PROJECTS WORTH MORE
THAN RS 10,000 CRORE IN RAJASTHAN”
Dr Manjit Singh,
Principal Secretary,
Government of Rajasthan
Slum Redevelopment on
PPP mode.
(under RAY/IHSDP/
BSUP) out of which
40,000
allotted within next three
months
Prime Minister
Awas Yojna,
(MoHUPA, Gol)
houses)
Yojna received for 4 cities
under process
to be constructed in 2016-
L to R: Dr Manjit Singh, Principal Secretary, Government of
Rajasthan explaining the government’s future course of action on
various projects.
11. 11
RUIDProject -
Phase III & Phase
IV (ADB Assisted)
Implemented
of US$ 250 million with
project size of US$ 360
million including State
share of US$ 110 million
projects to be covered - 6
Towns
execution - Single mega
contract, performance
bidders to form company
before contract, reuse &
recycling of treated water
and quality audit through
third party
Project size of Rs 4200 Cr
State to cover - All towns
with> 50,000 < 1 lakh
population + 10 Heritage
Towns + 2 District Hq.
Towns, likely to be started
Supply Projects to be
implemented
level dedicated call centre, which has addressed more than 1
lakh complaints till March 31, 2016.
Now, I must highlight our initiatives in Housing for All.
The objective is to provide housing for all by the year 2020
in all ULBs of the state through slum rehabilitation, affordable
housing in partnership with the private sector and financial
subsidy for individual houses constructed.Till now, we have
out of which 40,000 houses have been allotted and possession
For this programme, a timeline has been prepared and issued
for construction of about 5 lakh houses in next four years.
This bring me to a major issue that every municipal
corporation in the country is facing — open defecation and
solid waste management.
Under the Swachh Bharat Mission, we have constructed
government has already uploaded applications for 2.60 lakh
individual toilets on the website.As far as community toilets
targeted to build 11,000 more.
For solid waste management,the government has already
started door-to-door collection of waste in 2,010 out of 6,000
wards.Our government has prepared detailed project report for
processing plants (RDF/Compost) in eight cities.We have also
invited tenders for mechanisation of transportation and work is
under progress.We have also finalised tenders for setting up of
biomedical waste plants in the remaining 15 districts,and have
tippers and 1,300 containers.
12. 12
Meanwhile, we have a goal to become an energy-
streetlight project, the objective is to save electricity without
reducing brightness levels on streets and roads. Rajasthan has
become the first state in the country to sign a memorandum
crore, to be made from saving in power consumption, without
extra financial burden on the state or ULB.About 3 lakh
lights have been replaced in 15 cities and work has been
completed in 14 ULBs. Currently, work is under process
in 16 ULBs.We have a target to complete 5 lakh points by
December 2016.
this programme.The mission components are water supply,
sewerage, urban transportation, drainage and green spaces.
Under this mission, 16 cities will be equipped with sewerage
systems where we will be spending Rs 1,300 crore. Since
we are planning to provide adequate water supply, under this
mission we will be spending Rs 540 crore on strengthening
the water supply situation in 12 cities.As far as green space is
concerned, four cities have been identified so far under this
mission.
We have already issued LOI for sewerage projects in
Interestingly, Rajasthan was the first state to get approval
under AMRUT. Meanwhile, all administrative and financial
sanctions are proposed to be issued before October 2016,
so that enough time is available for implementation. Under
AMRUT, all the ULBs are mandatorily to take GIS-based
mapping project that will enable them in planning, creation,
and development of various infrastructure initiatives in a
Dr Manjit Singh, Principal
Secretary, Government
of Rajasthan addressing
the officials during panel
discussion
13. 13
planned manner, through a secured and user-friendlyWeb
headquarters and sub-division headquarters. Phase three will
cover the remaining cities.
Under Rajasthan Urban Infrastructure Development
Development Bank to the tune of $250 million with project
size of $360 million including the state share of $110 million.
Work on six cities under this has already started and will be
completed in the stipulated timeframe. RUIDP is likely to
Now to make all these schemes work and to have
long-term benefits, it is important that the ULBs become
autonomous, generate their share of finances and depend on
their own revenues to operate and maintain infrastructure.
Apart from this, the accounting of municipalities has to
be improved.The objective is to shift from a cash-based
accounting to an accrual-based accounting system, to update
the accounts and get them audited.
Hence, to improve the accounting and audit of ULBs,
which have been accomplished after signing the MoU
are: empanelment of Chartered Accountants for providing
division-wise accounting and audit services and a Municipal
Finance Reform Cell.
The 13th Finance Commission had recommended
that the ULBs should shift from cash-based accounting to
accrual-based accounting system. Since 2010, an effort has
been made in this direction. But it gained momentum with
were empanelled division-wise and were allotted accounting
and auditing of ULBs.This will ensure that all the payment is
14. 14
through RTGS, e-tendering exists for every tender and will
give financial powers to ULBs.
Meanwhile, MFRC was constituted with the aim to
bring about reforms in the financial management of ULBs.
The MFRC will review progress of accounting services and
audit of annual accounts. It will also organise workshops and
training sessions for ULB staff and empanelled CAs. MFRC
will co-ordinate, compile and review MIS formats and
convene review meetings to take appropriate action in respect
of revenue enhancement, funds and budget management.
Here, MFRC will have an uphill task for the current financial
year as the total grant allotment to ULBs is around Rs 65,000
crore.
In the interim, MFRC will also coordinate with the
Smart Raj project team to ensure that accounting, budgeting
and reporting modules are as per the requirement of ULBs.
We have a target to increase revenue from the current 20 per
cent to 50 per cent.
At the end, I personally think that this one-day workshop
will definitely benefit our state’s ULBs for initiating new
ideas.
I am thankful to the people of Smart Cities Council
India for organising this workshop.