2. INDUSTRIAL ECONOMIST DECEMBER 2018 9
COVER STORY
Ramesh Subramaniam is Director
General, South-East Asia at the Asian
DevelopmentBank,Manila.Hewashighly
appreciative of the wide range of subjects
that we had covered on India 2030 in the
IEgoldenjubileecommemorativevolume
released in March 2018. I had a business
trip scheduled for Manila. He invited me
to address select specialists at the Asian
Development Bank in Manila on India’s
Smart Cities project. I addressed them
on Diwali day, 06 November. And for
my efforts I received a Diwali bonus of a
special lunch at ADB’s sprawling dining
hall! I also interacted with their senior
executives. Excerpts from my talk:
INDIA IS URBANIZING. The migration from villages and towns led to
the emergence of megacities, each with a population exceeding a crore.
The government has identified 100 cities to develop as smart cities.
These will incorporate technology to improve the quality of urban ser-
vices. There are a few drivers of change: transportation, security, energy,
technology, healthcare, housing, water and sanitation and education.
I focused on a few of these levers.
Many countries have shown interest in partnering India in helping
its cities go smart. These countries will focus on building institutional,
physical, social and economic infrastructure. They will also facililate
citizen engagement, investments, skill development and full employ-
ment to improve the quality of life. Of course, attention will be paid to
environmental issues, including a mechanism for disaster management.
SMART TRANSPORTATION
India has a strong base for the production of
automobiles and auto components. Global
majors have established production facilities
for Indian and global markets. India pro-
duces annually 2.3 million cars, 25 million
two-wheelers, 0.7 million three-wheelers and a million commercial
vehicles. From taxi apps to car sharing, from rapid bus transit to metro
SMART
TRANSPORTATION
ENERGY
DIGITAL SECURITY
TECHNOLOGIES
HEALTHCARE
HOMES AND BUILDINGS
SANITATION
EDUCATION
3. COVER STORY
10 INDUSTRIAL ECONOMIST DECEMBER 2018
rails, from bike sharing to walking, choices for
commuting are expanding.
Powerful multinational corporations have
leveraged the new prosperity of the urban middle
class. This has resulted in explosive growth in
the number of vehicles on roads and has been
contributing to traffic jams. Chennai is a typical
example: for a population of 5 million, it has 3.7
million vehicles of which 3.3 million are two-
wheelers. This means private transportation
accounts for a significant share of
commuting. In 2010, a full 20 years
after I had first recommended it, the
metro rail project for Chennai started.
The initial phase of 45 km of two met-
ro rail lines will be fully in operation
early next year.
Let us meet Dr. V Sumantran, the
Harvard scientist, who has worked on
automobile research across the globe.
He, along with two of his Harvard col-
leagues, wrote a book on the Future of
Car and Urban Mobility. The authors
stress that the world must design cit-
ies for its citizens and not for its cars.
This is true of several metros where
the target is to ensure that 70 per
cent of commuting happens by mass
public transport. The smart city plan
would work on automated passenger
information system with real-time in-
formation, parking management and
transit-oriented development that
will include walking, cycling and bus connectiv-
ity. Role of autonomous heavy buses for public
transportation, use of integrated technologies
and, importantly, the switch to electric vehicles
are all on cards.
In public transport, last mile connectivity is
vital.Inrecentmonthsthereisawelcomespurtof
initiatives from Chennai Metro Rail Ltd. (CMRL).
Here is an instance. To take care of the last mile
conveyance in select metro rail terminals, CMRL
has provided for a modest fixed fare of Rs 10 for
share auto and Rs 15 for share taxi ride up to 3 km.
Such measures have led to a significant increase
in the number of commuters by metro rail.
I recently visited Hong Kong, which has a bril-
liant commuter transportation system. These
include the metro rail, big and small buses and
trams and ferry services. A pre-paid debit card
Octopus, provides for availing not just the ser-
vices of different modes of transport but also for
retail purchases. A refundable deposit of HK $ 50
and refill @ HK$ 50 gets one the Octopus card.
There is 50 per cent concession on the transporta-
tion services for senior citizens and children.
The ease and convenience of the Octopus
cards are worth emulating. I do hope the long
talked about move towards a single urban trans-
port authority would take shape soon. Despite all
the criticism over demonetisation, there has been
a huge shift to simple instruments like RuPay
cards. It should be possible for CMRL to intro-
duce a Hong Kong type debit card.
SMART ENERGY
The second significant change
will take place in the energy sec-
tor. We are heavily dependent on
fossil fuels. Nearly two-thirds
of India’s installed capacity of
250 GW power is based on coal. The new energy
policy envisages phasing out lignite from new
plants by 2022 and phasing out coal from 2027.
Thus the future will predominantly have solar
and wind energy.
Tamil Nadu is a leader in harnessing wind
energy. Around 8500 MW, forming a third of
the total capacity, is accounted by wind energy.
The current focus is on solar power. With an
abundance of the sun almost right through the
year, India targets to harness 100 GW from this
source. The smart city programme will have
green buildings that will focus on optimised use
of energy. Every significant building will have
In a vibrant democracy like India, any scheme of the
government is bound to be opposed. The ambitious
programme of smart cities is no exception. Apart
from political parties several think tanks have also
raised serious misgivings. One such is the Housing
and Land Rights Network. Some of the issues raised:
Only about 8 per cent of India’s population of 22
per cent of the urban population is likely to benefit
from smart city mission. This translates to 1.75% of
the nation's population. So, why select only 100 over
India’s 4000 cities and towns? Why not select areas
in each city? Why adopt a project-based approach
Of course there are counter points...
rather than an integrated urban development paradigm?
India has multiple other problems to tackle and why throw
up new ones? Like, the threat of forced evictions; risks of
digitalizationandthreattoprivacy;environmentalconcerns;
increased corruption of cities and high dependence on
foreign investments.
These concerns need to be addressed. The smart city
plan would shift power to the Centre and the state as also
to powerful national and international corporations. We
need to install suitable regulatory systems.
But, on balance the smart cities plan is welcome. Their
success can be emulated by other cities and schemes.
4. INDUSTRIAL ECONOMIST DECEMBER 2018 11
COVER STORY
a roof-top solar facility. The power
needs of the agriculture and domestic
sectors, which constitute 50 per cent
of power consumption in Tamil
Nadu, can be met by solar power.
SMART DIGITAL
SECURITY
Smart cities will
takecareofthesafe-
ty of its citizens. A
broad spectrum of
city surveillance and homeland secu-
ritysystemsarebeinginstalledaspart
of the intelligent cities’ programme.
India’s largest city surveillance
project comprising 5000 cameras
was established in 1500 locations
in Mumbai metro. Similar systems
were installed in other cities. The
results have been dramatic: in Ra-
jkot (Gujarat), in the last six months,
crime rates fell by 18 per cent. Public
litteringhasreducedsubstantially.InTa-
mil Nadu, the city cops have been
able to track criminals of burglaries,
bank robberies and murders with
remarkable speed, thanks to ubiqui-
tous security cameras. Push button
systems at vantage points also help a
citizen in reaching out to the nearest
police station. Now it is mandatory to
have such emergency push buttons
in autos and taxis that have a central-
ized control system. These help in
improving traffic management and in
reducing corruption.
SMART
TECHNOLOGIES
Technology and digital gov-
ernance through extensive
communication networks and
other intelligent infrastructure that include
scores of citizen apps are the new normal. This
is aided by the spectacular expansion of telecom
services. Imagine, just two decades ago, India
had only 40 million telephone connections;
today it has nearly 1200 million! Even before
the introduction of Aadhar, cellphone numbers
had become a comfortable identity and a unique
identification number! With hundreds of apps,
the smartphone is fast becoming an indispens-
able tool for smart cities. Dr Sumantran says for
the new gen a smart phone, and not a car, is the
aspiration!
Smart cities will use new technologies like the
Internet of Things (IoT), sensors, GPS equipment
and cameras. These will collect and transmit
The 100 Proposed
Smart Cities
data to a central facility, convert the data
and information received for real-time
monitoring and provide instant response.
A welcome development is flowering of
enterprises among educated, tech-sav-
vy youth who come out with apps in an
un-ending stream. Smart cities will give
enormous scope for such enterprises.
Internet and digital technology togeth-
er will contribute to increasing levels of
public-private partnership. These will
strengthen the functioning of govern-
mentinstitutionsandfacilitateeasyreach
to all citizens. Digital governance also
makes a system more transparent and the
citizens better informed. Making effec-
tive use of communication technology,
it provides for easy access to government
data. Services of government will be pro-
100 smart cities
on the anvil.
Tamil Nadu leads
the pack with
11, of which 10
are independent
towns while one,
namely T Nagar,
a part of Chennai
metro, has
been selected
as a model for
emulation.
6. INDUSTRIAL ECONOMIST DECEMBER 2018 13
COVER STORY
genetics. IoT would integrate the data from experiments
instantly, monitor the condition of the patient and then
relay that information to the doctors in real-time.
Electronic Health Record (EHR) is the starting point
for all this. Technologies such as block-chain will help
us populate and maintain EHRs. The future of smart
healthcare in smart cities will be driven by ingestible pill
monitors, bio stamps, nutrition sensors, AI doctors, 3D
printing, etc. Over time we will have minimized response
time, quick emergency services, reduced crowds in hos-
pitals, remote treatment and collaboration with doctors
around the globe.
Smart wearable devices will be an integral part of intel-
ligent healthcare. A patient will use them to assess his
health status on his own. These devices help in checking
glucose level, heartbeat, cardiovascular problems, vision
quality and chronic ailments. Products like fitness bands
have gained popularity. Smart watches, 3-D printed pills,
smart contact lenses and smart bras are some of the devel-
opments that are already happening.
All this will require a public-private partnership.
SMART HOMES AND BUILDINGS
Smart cities should have in-
telligent buildings and smart
homes. Let us first explain the
idea of smart homes. In a typi-
cal smart house, many of the
following will happen:
Your television can connect you to the Internet and
help you access movies and music on demand. In short,
an Amazon Fire will become the default mode in a TV.
Smart lighting can know when you are in the room and
adjust brightness based on daylight availability. With
smart locks, you can allow visitors into your home. In
fact, these can even detect when you are about to reach
home and unlock the doors for you, switch on the lights
and play out your favourite music! A smart home system
can second-guess when you will reach home and ensure
the house is air-conditioned by the time you arrive. With
smart security cameras, you can monitor your home
when you are away. Kitchen appliances have gone smart.
Smart coffee makers can provide you with a fresh cup of
coffee as soon as you get up. Smart refrigerators can make
shopping lists for you!
Smart buildings use technologies to improve building
construction efficiency, reduce energy cost and ensure
safety on the lines we just outlined. These help in power
maintenance and manage power outages more quickly.
SMART SANITATION
Smart sanitation centers on potable water, drainage sys-
tem and toilets for all.
In India, existing toilets use too
much water. In the new world of
smart cities, the drainage system
will use the Internet of Things
(IoT) technologies. By incorpo-
rating such technologies, we can
Andhra’s spanking new capital
The Government of Andhra Pradesh is to set up a new
capital city, which is a part of Smart City Mission of India.
Amaravati, a Greenfield city, will meet the standards of the city
of Singapore. Situated on banks of river Krishna in Guntur, the
city’s population around is 35,52,950, spread across 217.50
sq. km of land.
Amaravati will comprise of nine cities: knowledge city,
financial city, health city, tourism city, government city, sports
city, justice city and education city. The city has been identified
with nine economic anchor sectors as drivers of growth:
Manufacturing food processing, electronics, Fashion and
apparel, Hi-tech products. Services tourism, higher education,
healthcare, hi-end services, and government.
The city’s infrastructure has particular focus on:
• Traffic and transportation
• Water supply and fire fighting systems
• Wastewater management
• Storm water management
• Power
• Solid Waste Management
• Gas distribution
vided cost-effectively. The lack of human interface will
reduce corruption in availing public services.
SMART HEALTHCARE
What is a smart city without smart healthcare? Zilch. In
the smart-city scenario of tomorrow, hospitals will pro-
vide never seen before type
of service. Here’s a peep.
Hospitals will use Digital
and mobile devices, Artifi-
cial Intelligence (AI) and the
Internet of Things (IoT) to
predict ailments, spot dis-
eases and cure them. Sensors will collect patients’ data,
professionals will analyse it and this will lead to cost-
effective personalised treatment. Also, AI will be used
to perform repetitive tasks like examining laboratory
tests, x-rays, CT scans. It can spot cancer and vascu-
lar diseases early and predict health issues based on
7. COVER STORY
14 INDUSTRIAL ECONOMIST DECEMBER 2018
Country Regions of interest
selected for Smart City
Program
Scope of
Work proposed
Singapore All 100 Smart Cities
Across India
Re-engineering,
upgrading transporting
Sector and Retro-
fitting older Cities
Singapore Amravathi - New Capital
State of Andhra Pradesh
Holistic Development
Canada All Smart Cities To provide residential
solution by building
wooden multi-storey
housing complexes
Japan Varanasi [UP] /
Ahmedabad [Gujarat] /
Chennai [Tamil Nadu]
Holistic Development
with thrust on Urban
Development Initiatives
Germany Bhubaneswar [Odisha]/
Kochi [Kerala] /
Coimbatore [Tamil Nadu]
Holistic Development
USTDA [United
States Trade and
Development
Agency]
Visakhapatnam [Andhra
Pradesh] / Allahabad
[UP] / Ajmer [Rajasthan]
Holistic Development
Spain All Smart Cities Exchanging
technologies from
Barcelona Regional
Agency
France Chandigarh / Puduchery
/ Nagpur
Holistic Development
UAE / Sweden
/ Israel / The
Netherlands /
Hong Kong
All Smart Cities Investment on Smart
Cities
China Pune Holistic Development,
with special mention
to security solutions
and services
UK Belgavi [Karnataka] Holistic Development,
with special mention
to round-the-clock
drinking water supply
Italy All Smart Cities Investment on Smart
Cities for next 20
years. Also provide
design / technology/
services ranging
from consultancy to
infrastructure building
Countries shown interest to help in building
Smart Cities
The Greater Chennai Corporation
has formed a Special Purpose
Vehicle (SPV), Chennai Smart City
Ltd (CSCL) headed by Raj Cherubal
to implement this mission. The project
is estimated the cost Rs 1000
crore with state and Centre
dividing the cost. Excerpts
of an interview with Raj
Cherubal.
INDUSTRIAL ECONOMIST (IE): PLEASE EXPLAIN THE
CONCEPT OF SMART CITY.
Raj Cherubal (RC):Smartness of a city should be measured
by governance, social and environment smartness. Ministry of
Housing and Urban Affairs is developing an ease of living index
to measure various aspects of the city and to help cities identify
areas that need improvement. Almost all of these indicators
pertain to parameters like air quality, water quality, walkability,
safety, etc. So, all smart city projects should be part of a larger
strategy to improve the quality of life in our cities.
IE: PLEASE HIGHLIGHT THE FOCUS OF CHENNAI SMART
CITY.
RC: Chennai smart city projects cover a wide range of areas like
transport and mobility, energy, water, etc. Projects like water
bodies restoration, parking management, cycle sharing, smart
meters for electricity and water, storm water drains, pedestrian
plaza, and solar panels.
IE: WHAT ARE THE PROJECTS IN T NAGAR CHOSEN AS
PART OF THIS PROJECT?
RC: We have more than a dozen projects in T Nagar focused on
pedestrian - friendly pathways and non-motorised transport,
retrofitting of green open spaces, storm water drainage, 24x7
water supply, energy efficient LED street lighting and smart
metering. The projects are in various phases of implementation.
IE: CHENNAI IS RANKED 37 OUT OF 87 CITIES IN A LIST
RELEASED BY UNION MINISTRY OF HOUSING AND URBAN
AFFAIRS. WHAT ARE THE PROBLEMS THAT YOU FACE
DURING IMPLEMENTATION?
RC: Many of the projects being implemented in Chennai are
complex. Some of these areas and solutions have not been
tried out in India, so lot of discussions, planning, pilots, etc
is needed to test the solutions. Also, many of these projects
involve coordination among multiple departments. So the
entire process - from concept to building consensus preparing
detail project reports and all the way to implementation,
maintenance and monitoring – are very complex. CSCL
board has representatives from key departments and with
their guidance, nodal agents have been appointed from key
departments to coordinate the . Hence project implementation
has been smooth. – Jayanthi Raghunathan
Smart City
8. INDUSTRIAL ECONOMIST DECEMBER 2018 15
COVER STORY
improve preventative public health information, and
provide early warnings for outbreaks of disease. Smart
sanitation involves continuous monitoring of water
resources, real-time measuring and effecting improve-
ments in problem diagnosis.
The system acquires data through sensors, smart pipes
and smart meters; disseminates it through the Internet;
carries modeling thanks to geographic information sys-
tem (GIS); does data processing and storage, eg. cloud
computing); and takes a decision through web-based
communication. Let’s walk through some details.
Wireless sensors help cities to accurately check their
water supply systems. Such sensors can detect flow
rates enabling early-leak detection and assist in the pri-
oritization of repair work. Smart meters support on-line
measuring of consumption.
SMART EDUCATION
The world is changing around us,
and the skills that will be needed
tomorrow will be different from
those that are required today.
Smart cities will have smart
schools that will employ intelligent classrooms.
For the teacher, the information helps him know how
many attended and how many were absent, of how many
attended how many left mid-class, etc. He also gets to
know how many of them used the App to access reading
material and how long did they study.
Apparently, we are in for exciting times. If only the
government can push the smart city reform to its logical
conclusion, we would live in a world so dramatically dif-
ferent from the world we all grew up.
– With inputs from Vijaya Durga
and Dr Narayanan Krishnan n
The progress made in Smart Cities Mission
that was launched on June 25, 2015 that
aimed at upgrading 100 cities in India.
Less money was allotted to smart cities in 2017-18 than
in 2016-17
Smart Cities Mission has the third highest allocation
among urban ministry schemes