What is the status of the Smart Cities Mission

Home » What is the status of the Smart Cities Mission

Concept Introduction:
- Launched in June 2015 with the goal of developing 100 smart cities across India as models of urban development.
The mission was meant to incorporate the Internet of Things (IoT) and technology to make cities more efficient in services like mobility, waste management, and water management.

Relevance : GS 3(Infrastructure)

Focused on two components: Pan-city proposals: IT-enabled services like mobility, waste management, and environmental monitoring.
Area-Based Development (ABD): Focus on retrofitting, redevelopment, and greenfield projects in specific zones.
Issues and Setbacks:
- Failed to address the fundamental urban needs of many cities.
Smart cities concept assumes a base level of infrastructure that India lacks, leading to a misalignment between goals and ground realities.
Local governance was bypassed in favor of Special Purpose Vehicles (SPVs), which were designed like private companies to manage projects.

Dependence on SPVs:
- SPVs were set up under the Companies Act, with the rationale that private company-like structures would bring better efficiency and results.
City councils and local governments were sidelined, as it was assumed that the technical and managerial expertise of SPVs would outperform public administration.
Challenges with the Model:
- Local governance systems, often politically charged, were perceived as slow and inefficient for urban planning and management.
The exclusion of local stakeholders led to a disconnect between the projects and the communities they aimed to serve, impacting the relevance and sustainability of the initiatives.

Inclusion in the Smart Cities List:
- Shimla, initially excluded, was added to the list following legal challenges in the Himachal Pradesh High Court.
Shimla’s Smart City Plan:
- The plan included both pan-city initiatives and ABD projects:
  - Retrofit Projects: Pedestrian crossings, improved vehicular mobility, transport corridors, underground ducting, and parking facilities.
Redevelopment Projects: Focused on dilapidated areas such as Lower Bazar, Ganj Bazar, and Krishnanagar, aiming to replace unsafe buildings with modern, earthquake-safe structures.
Other initiatives like eco-adventure tourism and water security through stormwater and spring water management.

Total investment: ₹2,906 crore.
- Sources:
  - ₹897.80 crore from Public-Private Partnerships (PPP).
  - ₹101.77 crore through municipal bonds.
  - ₹205.57 crore from external borrowings.
  - ₹348.49 crore from State and Union government schemes.
  - Remaining funds from other sources.

As of the latest update, only 24% of the total budget (₹707 crore) has been spent:
- ₹53 crore on completed projects.
- ₹654 crore on ongoing projects.
PPP funding has yet to materialize.
Project Failures:None of the redevelopment projects (e.g., Lower Bazar, Krishnanagar) have been completed.Traffic congestion has worsened, and non-motorised mobility initiatives have been neglected.Funds were used for decorative flower pots worth ₹2 crore instead of meaningful infrastructure.Large, intrusive escalator structures were erected but remain non-operational, disrupting Shimla’s scenic valley views.

Ineffective Governance and Accountability:
- The lack of public involvement and ownership resulted in misaligned priorities and poor execution of projects.
Lack of accountability for the failures of the mission has led to disillusionment, especially in cities like Shimla.
Lessons Learned:
- Urban development initiatives require meaningful urban governance, local participation, and a commitment to solving ground-level issues, rather than just relying on high-tech solutions.
The smart city vision has largely faded, with projects failing to deliver on their initial promises, especially due to top-down implementation without adequate local involvement.