Did Indian cities become smart?
An evaluation of Smart Cities Mission and something special for my readers at the end
The Smart Cities Mission, launched in June 2015 for five years, seeks to promote 100 smart cities that provide core infrastructure (such as water and electricity supply, sanitation, and public transport). The scheme was extended to June 2023 and then got another extension for up to June 2024. Recently, the Parliamentary Committee on Housing and Urban released a Report evaluating the Mission. Here are the findings from the Report-
Progress of Mission
The completion of 400 projects under the Mission is anticipated to extend beyond December 2023, prompting an extension of the mission until June 2024. The Ministry of Housing & Urban Affairs has clarified that post this period, the responsibility and cost of incomplete projects will shift to the states. The Committee suggested that the Ministry should not limit its role to the transfer of shares but actively intervene to facilitate execution and completion, providing necessary inputs and expertise.
Strengthening Urban Local Bodies (ULBs)
The advancement of the Mission is sluggish in several small cities, particularly in the northeastern states. Despite the allocation of 90% of Mission funds from the center, eight out of the 15 cities with the lowest mission progress are from the North-east. By December 2023, 47% of projects in the 20 lowest-ranking cities are in the work order stage. The Committee recommended formulating a plan to enhance the capabilities of ULBs in small cities. Additionally, the central government should support states requiring organizational restructuring and capacity building to improve their financial mechanisms.
Pan city projects
Projects addressing common issues like waste management, drinking water supply, and traffic management, known as pan city projects, constitute less than 50% of total projects in 76 out of 100 smart cities. The Committee suggested that the Mission should prioritize pan city projects for comprehensive and holistic development. This emphasis should include the implementation of smart solutions to optimize resource allocation and reduce wastage.
Digital infrastructure protection
The Mission involves various digital infrastructure platforms generating and utilizing large volumes of data. The Committee recommended the establishment of a mechanism to safeguard digital infrastructure from cyber threats and uphold data privacy. It also emphasized the necessity for the maintenance of both digital and physical assets, proposing the development of comprehensive operation and maintenance strategies to increase the lifetime utility and ensure timely upgrades of assets under the mission.
Special Purpose Vehicles (SPVs)
The Smart Cities mission is implemented by SPVs which are equally owned by ULBs and states. The board of directors of SPVs include central and state government representatives and chief executive officers (CEOs). The Committee noted that the frequent transfer of CEOs and lack of clear guidelines is one of the major challenges faced by SPVs. It recommended: (i) appointing dedicated CEOs with a minimum fixed tenure, (ii) ensuring representation of experts and concerned stakeholders in SPVs, and (iii) utilising an SPV’s existing expertise in future projects.
Hope you enjoyed reading this!
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