Smart cities and Urban Development in india

DR. PARAMITA MAJUMDAR
12 March, 2021 New Delhi
Smart Cities and Urban
Development in India
National Webinar on Urban Development and Tax Policies: An
Interplay
Jointly organised by
Centre for Tax Laws and Centre for Law and Urban Development,
National Law University, Delhi

Smart City : Concept
3/27/2021
Smart Cities and Urban Development in India,
Dr. Paramita Majumdar
2
 A smart city uses information
and communications
technology (ICT) to enhance its
livability, workability and
sustainability
 A city that monitors and
integrates conditions of all its
critical infrastructures –
including roads, bridges tunnel,
rails, subways, airports, seaports,
communication, water, power,
even major buildings – can better
optimize its resources, plan its
preventive maintenance
activities, and monitor security
aspects while maximizing
services to its citizens (US Office
Technical and Scientific
Information)

Why talk about Smart Cities?
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3
Smart cities occupy only 2% of the planet’s surface,
accommodate about 50% of the world’s population,
consumes 75% of the total generated energy and
are responsible for 80% of the greenhouse effect
In our country, 34% of the people live in urban centres
and the cities contribute to nearly 67% of the GDP and
90% of total government revenues.
https://www.newsclick.in/Budget-2021-Smart-Cities-Urban-Employment-Guarantee-FM-PM#:.....

Smart Cities - How it evolved?
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 Following the UN Bruntland Commission Report (1987) most
popular term was Sustainable City…..probably to limit
climate changes
 Mid 1990s – Eco-Cities – idea of eliminating all carbon
waste
 Late 1990s – Digital Cities became popular particularly in
Europe, suggesting a strong connection with the
exponentially growing information and telecommunication
technology and the large amount of information
 2009 onwards it is the Smart Cities – incorporating
elements of sustainability and social inclusion along with
the internet technologies. More acceptable by the world as a
neutral term

Smart Cities - How it evolved?
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5
 A basic study of literature on smart cities reveals that International
Business Machine (IBM) is the pioneer of the smart city concept
(Paroutis et al 2014). The United States Patent and Trademark Office
confirms that the patent for the concept of “smart city” was registered
by IBM in 2011 (Söderström et al 2014). It was amidst the financial
recession that IBM orchestrated the smart city concept as a strategic
move to benefit from the changing urban landscape.
 IBM is currently involved in about 2,000 smart city projects worldwide,
generating about $3 billion in revenue
 After seeing the IBM’s competitive advantage in the field, other players
such as Cisco, Siemens AG, General Electricals, Intel, HP, Google,
Microsoft, Capita, Serco, Philips, Oracle, SAP, and Accenture started
to take an active interest in smart city building projects across the
globe (Kummitha 2018).

Technocratic model of governance where corporate
interests are upheld at the cost of citizens' right to their
city.
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 Leading countries have come forward to be associated with
development of Indian smart cities. For example, Agence Francaise
de Developpement (AFD) France has partly funded for Nagpur
Metro Rail and Nag River rejuvenation plan as well as introduction
of electric vehicles. Other French firms including AFD will develop
Nagpur, Puducherry and Chandigarh
 US Trade and Development Agency (USTDA) to develop
Visakhapatnam, Allahabad and Ajmer
 UK for Pune, Amaravati and Indore, Germany for Bhubaneswar,
Coimbatore and Kochi, Japan for Chennai, Ahmadabad and
Varanasi, Dubai is negotiating with the Madhya Pradesh and
Andhra Pradesh governments (Harris 2015; UKTI 2015).
https://www.epw.in/engage/article/what-do-our-cities-need-become-inclusive-smart-cities

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 Hyderabad is not one of the 100 smart cities, but the
government of Telangana and the Greater Hyderabad
Municipal Corporation have raised resources to
promote Hyderabad as a smart city (Das 2018).
 The International Institute of Information
Technology, Hyderabad (IIITH) has set up a Smart City
Research Center (SCRC) with support from MEITY
(Government of India), Smart City Mission and
Government of Telangana.

Main Characteristics and Tools available to the
municipalities and citizens to transform a city into a
smart one
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Characteristic
s
Innovati
ve
Inclusi
ve
Resource
Efficient
Environmen
tal
Liveabl
e
Sustaina
ble
Climate
friendly
Econom
ic Dynami
c
Resilie
nt
Tools
ICT
Participator
y Approach
Financi
ng
Integrate
d
Planning
Data
Driven
Definition of
Smart Cities

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100 Smart Cities
Mission’ initiated in
2014. Strategic
components
identified in the
Mission include: a)
Retrofitting
b) Redevelopment
c) Green Field
development d) Pan-
city development.
Budget 2020-21 : Rs
6,450 crore
Budget 2021-22 - Rs
6,450 crore
A relatively new phenomenon in India

What are the Pillars of a Smart City?
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Social
Economic
Institutional
Employm
ent
Quality
of Life
Power _
Water Supply _
Solid.W.Mangment _
Sewerage _
Multimodal Transport _
Cyber Connection _
Connectivity (Roads,
Airports, Railways) _
Housing _
Disaster _
_Education
_ Healthcare
_ Entertainment (Parks & Greens,
Music, Culture and Heritage, Sports,
Tourist spots)
_Inclusive Planning (SC/ST, Backward
Incentives)
_ Building Homes
_ GDP Contrbn.
_ Job Creation
_Livelihood Activities
_Market Growth
_Speedy Service Delivery
_Enforcement
_Security
_Taxation
_Institutional Finance/Banking
_Transparency and Accountabili
_Skill Development
_Environmental Sustainability
_People's participation in decisio
_ ICT based Service delivery
_Citizen Advisory Committee
I N F R A S T R U C T U R E
Sustainability

Smart City vis-à-vis Urban Development
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Smart Solutions
Smart
cities bring
together
infrastructure
&
technology to
improve the
quality of life
of citizens &
enhance their
interactions
with the urban
environment.

Smart City vis-à-vis Urban Development
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Smart Cities and Urban Development in
India,
12
 Both Atal Mission for Rejuvenation and Urban Transformation
(AMRUT) and the Smart City Mission focus on making cities more
liveable by preserving open and green spaces, creating walkable
communities, and encouraging non-motorised transport, as well as
reducing average commuting times and recycling wastewater.
 The MoUD has developed a set of ‘Liveability Standards in
Cities’ to generate a Liveability Index and rate cities. A total of 79
indicators (57 Core Indicators and 22 Supporting Indicators) have
been prescribed in the document. These have been grouped under
15 thematic categories, which in turn are part of the four pillars of
comprehensive development of cities, namely institutional, social,
economic and physical. Based on the performance of cities against
the various core and supporting indicators, various ‘Category Sub-
Indexes’ and a composite ‘City Liveability Index’ is developed for
each city. https://smartnet.niua.org/content/b0ceb13f-2559-4be1-86dc-8daa290d4fed

Example :
Smart Water for Smart Liveable Cities
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 Rapid urbanization and the ever increasing demand for water is a
reality.
 Smart City projects are largely around housing, infrastructure, open
spaces, finance and technology. Water management tends to be
clubbed together with climate change, in most cases
 Most of the policies and public sector programmes in India are aimed
at the supply side of the problem, e.g. AMRUT, concerned about
expansion of piped water supply. This is of paramount importance as
less than 35% of urban households get piped water and no major
Indian city supplies 24×7 water to its entire population.
 Therefore, sustainable water management ??? – Ground water levels
have been depleting rapidly over the last few years especially due to
the poorly managed extraction and excessive consumption. Cities like
Ahmadabad, New Delhi & Bangalore have witnessed a significant dip
in their water table.

Example :
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 The ‘Composite Water Management Index’ (CWMI) report NITI
Ayog released on June 2020 -India is facing the worst water crisis in
its history, and 21 Indian cities will run out of groundwater by
2020 including Delhi, Bengaluru, Chennai and Hyderabad, affecting
100 million people
 The Central Water Commission states that for the 90 odd important
reservoirs across the country that feed our cities, levels have not
crossed more than half the total capacity in the past five years – a
worrying statistic given the general paucity of water data in India,
especially for urban spaces.
 Wastewater plants with relevant technologies can be installed in the
city to treat municipal waste efficiently. Individuals and organizations
can also establish wastewater processes in their buildings at a
varying scale on the basis of their respective volumes. Singapore
has been able to successfully adopt smart wastewater management
to meet 40% of their water demand.

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 Effect of Covid-19 on our limited water supplies - Currently, we are
witnessing regular sanitisation drives in industries and offices,
frequent cleaning in homes, and increased hand-washing. A family
of five is reported to need 100 to 200 litres of water per day only to
wash hands. This would result in the generation of around 200
litres of wastewater per day, which amounts to 20 to 25 percent
increase in water demand and generation of wastewater from
human settlements
 Individual responsibility and accountability: Smart cities need to
drive the responsible use of water through intelligent tracking
systems that monitor individual consumption, alerting people when
their usage exceeds recommended or predetermined limits. This will
ensure greater individual accountability and inculcate disciplined
use of resources.

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Efficient
Wastewater
treatment and
removal
https://development.asia/explainer/what-smart-water-management

Solution??
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Area Based Development

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The New Delhi City Centre (NDCC) is the only area selected from Delhi under the SCM. It is
situated within the NDMC area and is marked in red in the above map. NDCC is less than
one percent of Delhi’s area) selected for transformation over a period of ten years (2015-
2025).
https://www.orfonline.org/research/the-smart-cities-mission-in-delhi-2015-2019-an-evaluation-60071/
NDCC Area Based Development

NDCC Area Development
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Smart Cities and Urban Development in India, Dr. Paramita Majumdar
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on of New Delhi City Centre in Delhi
NDMC Budget 2021-22, proposes to allocate Rs.166.12 crore
towards water supply management out of which Rs 7.36
crore towards Capital Expenditure and Rs. 158.76 crore towards
Revenue Expenditure.
Capital expenditures are typically one-time large purchases of fixed assets that will be used for revenue generation over a longer
period. Revenue expenditures are the ongoing operating expenses, which are short-term expenses used to run the daily business
operations

Smart Cities, Inclusion and Citizen
Participation ?
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 Smartness’ is not a synonym for inclusion
 Outlook of the SCM is Restrictive and fragmented - The focus SCM is not
on the entire area of the 100 shortlisted cities, but instead on select
pockets within these cities.
 SCM focuses on digitalisation – SCM could exacerbate India’s digital
divide, which is also a gendered and an urban-rural divide
 SCM talks about promoting the active participation of communities, but
on the other, there has been heightened corporate involvement in the
smart city-building process.
 EOL Index doesn't really indicate the ground realities of Indian cities
because it provides information at the overall city level. The proportion of
slums and low-income households average about 25 percent of the total
population. These city-level indices do not reflect the level of services
and governance in low-income areas. The citizens and policymakers
need to consider them as a separate target group to improve services
and wellbeing.
 The mission with its notion of inclusiveness fails to integrate disability as
a key issue. Cities are moving towards advanced, digital or smart
services yet the disabled population has to struggle hard to achieve basic
needs, widening the social stratification - neglected the access to IT
enabled solutions like e-governance and citizen services.

SCM & Inclusion….
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 25 cities shortlisted for the Nurturing Neighbourhoods Challenge cohort, in
collaboration with the Bernard van Leer Foundation (BvLF) and technical
partner WRI India. The Challenge is a three-year initiative aimed at
supporting early childhood-friendly neighbourhoods under the SCM.
 The MyGov platform allows the public to exchange ideas and views, which
are vital inputs for decision- and policymaking.
 Websites created by urban local governments provide information and
various services to the citizens.
 The EOL index captures the nature of urban living across Indian cities based
on three pillars – quality of life, economic ability, and sustainability. The
exercise is also accompanied with a Citizen Perception Survey to assess
whether the data aligns with the expectation of the urban population from their
cities.
 However, along with a multi-sectoral and whole systems approach, there
needs to be more community-based learning and understanding. Secondly,
we need e.g., more water-sensitive infrastructure, housing and urban designs,
all of this incorporated into the initial stages of planning and development,
along with adapting existing infrastructure in older cities with new technology.

Smart Cities - Implementation challenges
3/27/2021
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1. Retrofitting existing legacy city infrastructure to make it smart e.g.
determine the existing city’s weak areas that need utmost consideration, e.g.
100-per-cent distribution of water supply and sanitation is a significant
challenge
2. Financing smart cities - how the projects will be financed as the majority of
project need would move through complete private investment or through
PPPs (public-private partnership)
3. Availability of master plan or city development plan – most cities don’t
have one
4. Financial sustainability of ULBs: Most ULBs are not financially self-
sustainable and tariff levels fixed by the ULBs for providing services often do
not mirror the cost of supplying the same. Even if additional investments are
recovered in a phased manner, inadequate cost recovery generally leads to
continued financial losses.
https://realty.economictimes.indiatimes.com/realty-check/the-top-10-implementation-challenges-for-smart-cities-in-
india/776

Implementation challenges …..
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5. Technical constraints of ULBs: Most ULBs have limited technical capacity to
ensure timely and cost-effective implementation and subsequent operations and
maintenance owing to limited recruitment over a number of years along with inability of
the ULBs to attract best of talent at market competitive compensation rates.
6. Three-tier governance: Successful implementation of smart city solutions needs
effective horizontal and vertical coordination between various institutions providing
various municipal amenities as well as effective coordination between central
government (MoUD), state government and local government agencies
7. Providing clearances in a timely manner: For timely completion of the project, all
clearances should use online processes and be cleared in a time-bound manner.
8. Dealing with a multivendor environment: The ability to handle complex
combinations of smart city solutions developed by multiple technology vendors becomes
very significant.
9. Capacity building programme: Building capacity for 100 smart cities is not an easy
task and most ambitious projects are delayed owing to lack of quality manpower, both at
the centre and state levels.

Smart Cities and Smart Laws – A snapshot
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Policies
Standards
Regulations
Guidelines
• For data security, Indian
cities comply with “Information
Technology (Reasonable
security practices and
procedures and sensitive
personal data or information)
Rules, 2011”, issued under
section 43A of the Information
Technology Act, 2000 which
governs management and
sharing of sensitive personal
data
• Currently, the Bureau of
Indian Standards is working in
association with the SCM to
develop requisite standards for
smart cities
National Data Sharing and Accessibility Policy (NDSAP)
guidelines issued by the DST, GOI, as its policy for data
management.
The Personal Data Protection Bill, 2019, is under
consideration
At the city level, a special purpose
vehicle (SPV) is created as a
limited company under the
Companies Act, 2013. This SPV
plans, appraises, approves
and releases funds to further
implement, manage, operate,
monitor and evaluate the smart city
developmental projects
DataSmart Cities Strategy,
MoHUA - guidance and
framework
- TRAI - White Paper
highlights the Role of digital
technologies for smart cities
(Sept, 2020)

References
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 The Smart City Concept in the 21st Century
https://www.sciencedirect.com/science/article/pii/S1877705817309402
 Reconceptualising Smart Cities: A Reference Framework for India
https://niti.gov.in/writereaddata/files/document_publication/CSTEP%20Report%20S
mart%20Cities%20Framework.pdf
 Smart Cities: The Future Of Urban Development
https://www.forbes.com/sites/jamesellsmoor/2019/05/19/smart-cities-the-future-of-
urban-development/?sh=8172b832f900
 Smart City Proposal NDMC https://www.ndmc.gov.in/smart-city-ltd-
website/pdf/Smart%20City%20Ppt.pdf
 BENGALURU, DELHI, CHENNAI AMONG 21 CITIES TO RUN OUT OF
GROUNDWATER BY 2020 https://www.firstpost.com/tech/science/indias-water-
crisis-bengaluru-delhi-chennai-hyderabad-among-21-cities-to-run-out-of-
groundwater-by-2020-4590221.html
 Intelligent water and wastewater management for smart cities
http://bwsmartcities.businessworld.in/article/Intelligent-water-and-wastewater-
management-for-smart-cities/03-04-2020-188176/

References
3/27/2021
26
 We Must Make Water Security a Cornerstone of Future Indian Smart Cities,
https://thewire.in/urban/water-security-indian-smart-cities
 The Smart Cities Mission in Delhi, 2015-2019: An evaluation, Rumi Aizaz,
https://www.orfonline.org/research/the-smart-cities-mission-in-delhi-2015-2019-an-
evaluation-60071/
 Budget Speech 2021-22
https://ndmc.gov.in/departments/Departments/Finance/budget-2021-
22/English%20Budget%20Speech%202021-22.pdf
 Smart laws absolutely necessary to run India's smart city projects:
Expertshttps://www.business-standard.com/article/current-affairs/smart-laws-
absolutely-necessary-to-run-india-s-smart-city-projects-experts-118112800007_1.html
 Technology and Data Governance in Cities Indian Smart Cities at the Forefront of the
Fight Against COVID-19, World Economic Forum December 2020,
http://www3.weforum.org/docs/WEF_Technology_and_Data_Governance_in_Smart_
Cities_India_2020.pdf
 https://www.ncpedp.org/Smart_Cities_Mission
 https://www.newsclick.in/Budget-2021-Smart-Cities-Urban-Employment-Guarantee-
FM-
PM#:~:text=The%20total%20budgetary%20outlay%20for%20urban%20development
%20is%20Rs%2054%2C581,below%20to%20Rs%2046%2C791%20crore.&text=In
%20all%20this%20amount%2C%20BE,four%20metros%20of%20the%20country
.

Thank You
drparamitamajumdar@gmail.com
3/27/2021
27

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