Smart Cities Mission
Context:
Nearly a decade ago, the Indian government launched the Smart Cities Mission, envisioning 100 smart cities as the new lighthouses of urbanisation.
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- Announced in June 2015, the initiative aimed to create models of modern urban development across the country.
- However, as time has passed, these ambitious plans have largely been relegated to the annals of India’s urbanisation history, with the promise of “smart cities” fading into disillusionment.
Smart Cities Mission (SCM)
The Smart Cities Mission (SCM) was launched by the Government of India with the objective of promoting sustainable and inclusive urban development across 100 selected cities. The mission aims to enhance core infrastructure, improve the quality of life for citizens, and create a clean and sustainable environment through the application of smart solutions. Each city is required to establish a Special Purpose Vehicle (SPV) to implement projects, including retrofitting existing areas and developing new ones. As of December 2024, significant progress has been made, with over 7,800 projects completed out of 8,075 tendered, utilising approximately ₹147,704 crores of the allocated budget. The mission aligns with sustainable development goals (SDGs) and emphasises liveability, economic viability, and sustainability in urban planning.
What Went Wrong with Smart Cities?
- The concept of smart cities was built around the Internet of Things (IoT), a framework that operates effectively in advanced economies where basic urban utilities are already well-established.
- In India, however, where millions still struggle to access fundamental services, “smart cities” became synonymous with providing essential amenities rather than sophisticated technological solutions.
- The initiative focused on two primary components:
- Pan-City Proposals: These involved IT-enabled services like waste management and urban mobility.
- Area-Based Development (ABD): This targeted specific zones within cities for retrofitting, redevelopment, and greenfield projects.
- A critical flaw in the mission’s governance model was its reliance on Special Purpose Vehicles (SPVs), private company-like entities established under the Companies Act.
- By bypassing traditional city councils, the initiative assumed that private management would deliver better results, excluding local governments from meaningful participation in urban development.
The Shimla Experience
- Shimla, the capital of Himachal Pradesh, was initially left out of the Smart Cities Mission.
- After legal challenges in the Himachal Pradesh High Court, it was granted the smart city tag. The city’s plan adhered to the guidelines, including both pan-city initiatives and ABD projects.
- Shimla’s ABD projects aimed to retrofit 244 acres of land with improved pedestrian crossings, enhanced vehicular mobility on circular roads, and upgraded transport corridors.
- Proposals also included underground ducting, parking facilities, eco-adventure tourism, and water security measures through stormwater and spring water management.
- Redevelopment plans targeted Lower Bazar, Ganj Bazar, and Krishnanagar, where unsafe, dilapidated structures were to be replaced with earthquake-resistant buildings designed to boost tourism.
- The total estimated investment for Shimla’s smart city transformation was ₹2,906 crore, sourced from Public-Private Partnerships (₹897.80 crore), municipal bonds (₹101.77 crore), external borrowings (₹205.57 crore), and government schemes (₹348.49 crore).
- However, only ₹707 crore—just 24% of the budget—has been spent so far, with ₹53 crore allocated to completed projects and ₹654 crore to ongoing ones.
- Notably, the anticipated PPP contributions have yet to materialise.
Disappointing Outcomes
- Despite its ambitious vision, the Shimla smart city plan has fallen short of expectations.
- Redevelopment projects in Lower Bazar, Middle Bazar, and Krishnanagar remain untouched, and traffic congestion in the city has worsened.
- Plans for non-motorised mobility have been neglected, while funds were instead diverted to less impactful projects, such as ₹2 crore spent on flower pots.
- Large, visually intrusive structures were built for escalators that remain non-operational, obstructing Shimla’s renowned valley views.
Key Lessons from the Smart City Mission
- As the Smart Cities Mission nears its conclusion, the reasons for its shortcomings are evident.
- Projects lacking robust urban governance and meaningful public involvement are destined to fail.
- The exclusion of city councils from decision-making processes and the absence of accountability have left the initiative adrift.
Shimla’s experience serves as a cautionary tale, highlighting the need for inclusive governance, community engagement, and strategic planning. Without these elements, even the most promising visions of urban transformation risk fading into oblivion
