Context: The Standing Committee on Housing and Urban Affairs has presented a report (“Smart Cities Mission: An Evaluation”) in Lok Sabha.
Highlights of the Report
- The committee has emphasised the need to launch the next phase of the mission with a thrust on Tier-2 cities located within 100 km of State capitals.
- It emphasised ensuring the right to privacy and securing of digital platforms from cyber-attacks arising out of misuse of digital infrastructure created under the mission.
- Report highlighted that some projects would not be able to meet the deadline of June 2024. (*Initial deadline was 2021, which was extended to June 2023 and then June 2024 )
Following reasons were cited for Delay-
- Difficulties in resettlement of local population.
- Legal issues like those pertaining to land procurement.
- Frequent transfers of smart cities CEOs which prove disruptive for seamless continuation of projects.
- Several project require convergence with other government ministries or agencies which caused delays.
Smart City Mission
- Smart Cities Mission was launched in 2015.
- The main objective of the Mission is to promote cities that provide core infrastructure, clean and sustainable environment and give a decent quality of life to their citizens through the application of ‘smart solutions’.
- The Mission aims to drive economic growth and improve quality of life through comprehensive work on social, economic, physical and institutional pillars of the city.
- The Union Ministry of Housing & Urban Affairs is responsible for implementing the mission in collaboration with state governments.
Financing
- The Smart Cities Mission in India is a centrally sponsored scheme.
- It also requires state governments and urban local bodies (ULBs) to contribute an equal amount for implementing projects under the Smart City Proposal (SCP).
- States are expected to seek funds for projects outlined in the Smart City Proposal from multiple sources including the following:
- Using State/ULB’s resources (from collection of user fees, beneficiary charges & impact fees, land monetisation, debt, loans, etc.)
- Deploying additional resources transferred due to acceptance of recommendations of the Fourteenth Finance Commission (FFC)
- Utilising innovative finance mechanisms, such as municipal bonds with credit rating of ULBs, Pooled Finance Development Fund Scheme and Tax Increment Financing (TIF)
- Leveraging borrowing from financial institutions including bilateral and multilateral institutions (both domestic and external sources)
- Availing the National Investment and Infrastructure Fund (NIIF)
Fundamental Principles
- Community at core of planning
- Ability to generate greater outcomes with the use of lesser resources
- Selection of cities through competition and flexibility in implementation
- Innovative methods for an integrated and sustainable solution
- Careful selection of relevant technology
- Sectorial and Financial convergence
Strategy
- Components of area-based development in the 100 Smart Cities Mission in India comprise city improvement (retrofitting), city renewal (redevelopment) and city extension (greenfield development), along with a pan-city initiative.
- Area-based development that will transform existing areas, including slums, into better planned residential areas by retrofitting and redevelopment, thereby improving habitability of the whole city
- Greenfield projects that will develop new areas in the city to accommodate the expanding population in urban areas
- Pan-city development envisaging the application of select smart solutions to the existing city-wide infrastructure
The core infrastructure elements in a Smart City are as follows:
- Adequate water supply
- Assured electricity supply
- Sanitation including solid waste management
- Efficient urban mobility and public transport
- Affordable housing, especially for the poor
- Robust IT connectivity and digitalisation
- Good governance, especially e-governance and citizen participation
- Sustainable environment
- Safety and security of citizens, particularly women, children and the elderly
- Health and Education
Administrative Structure
Guidelines on Smart City provide monitoring at three levels – national, state and city
- National: An Apex Committee, headed by the Secretary of the Ministry of Urban Development and comprising representatives from related ministries and organisations, has the mandate to approve proposals, monitor progress and release funds.
- State: A High Powered Steering Committee (HPSC) to be headed by the Chief Secretary of the State, which would steer the Smart City Mission as a whole.
- City: A Smart City Advisory Forum in all Smart Cities, comprising the District Collector, Chief Executive Officer of Special Purpose Vehicle (an SPV is created for implementation at the city level.
- Its role is to release funds, and implement, monitor and evaluate the Smart City development projects), member of Parliament, member of Legislative Assembly, Mayor, local youth, technical experts and representatives of the area Resident Welfare Association to advise and enable collaboration