Urban Transformation – Smart Cities, AMRUT, etc.

What is the status of the Smart Cities Mission?

Explained | Governance | Mains Paper 2: Government Scheme/Policies
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From UPSC perspective, the following things are important :

Mains level: Smart Cities Mission;

Why in the News?

The Smart Cities Mission (SCM), a flagship initiative launched during the NDA-1 government, has lost prominence in this year’s list of electoral promises and accomplishments.

What are smart cities? 

  • The Government of India defines smart cities as urban areas that provide core infrastructure, ensure a decent quality of life, promote a clean and sustainable environment, and utilize smart solutions for inclusive development.

What are the two major aspects of the Smart Cities Mission?

  • Area-Based Development (ABD): This includes three components:
    • Redevelopment: Transforming existing urban areas.
    • Retrofitting: Improving infrastructure in underdeveloped areas.
    • Greenfield Development: Creating new urban spaces with modern infrastructure.
  • Pan-City Solutions: These involve applying smart solutions across the entire city, enhancing services through technology and improving overall urban management and governance.

Why did the implementation of smart cities bypass local government? 

  • Special Purpose Vehicle (SPV) Model: The SCM employed a governance structure that relied heavily on Special Purpose Vehicles (SPVs), which were set up as limited companies under the Companies Act.
    • This model often sidelined local elected councils, as SPVs were typically led by bureaucrats or representatives from multinational corporations, limiting local government involvement in decision-making processes.
  • Top-Down Approach: Critics argue that the SPV model was too top-down, lacking alignment with the 74th Constitutional Amendment, which emphasizes decentralized governance. This disconnect resulted in many cities objecting to the governance structure, as it did not adequately reflect the needs and demands of local populations.
  • Competitive Selection Process: The selection of cities was based on a competitive process that did not account for the diverse urban realities across India. This approach led to an exclusionary scheme where only small portions of cities were targeted for development, often ignoring broader community needs and existing urban dynamics.
  • Limited Local Engagement: The mission’s design did not prioritize citizen participation or local stakeholder engagement effectively, which is crucial for understanding and addressing unique urban challenges. This lack of engagement contributed to projects that did not resonate with the actual needs of residents.

What has happened to the mission in Shimla?

  • Project Value and Status: The ongoing projects in Shimla are valued at approximately ₹150 crore and are still in the early stages of construction. Key initiatives include the assembly flyover and various parking facilities, with tenders currently being processed.
  • Funding: The Union Government has allocated a total of ₹500 crore to Shimla under the SCM, with two installments of ₹98 crore still pending. The overall budget for the mission in Shimla is ₹750 crore, which includes a contribution of ₹250 crore from the state government.
  • Unfinished Projects: Despite the extension, several projects remain incomplete, including those at IGMC, Auckland, and Vikas Nagar. Additionally, construction for the bus stand parking area has not yet commenced.

What are the achievements of Smart City Mission?

  • Project Completion: As of December 2024, 91% of the total projects under the SCM have been completed, with 7,380 out of 8,075 projects finalized. This reflects significant progress in urban development initiatives across 100 selected cities.
  • Investment and Infrastructure: The mission has seen an investment of approximately ₹1,47,704 crore. Key areas of focus include infrastructure development, governance improvements, and social services such as housing, transport, education, and healthcare.
  • Technological Integration: All 100 smart cities have established Integrated Command and Control Centres (ICCCs), which utilize data analytics and emerging technologies like AI and IoT to manage urban services more effectively. These centres played crucial roles during the COVID-19 pandemic by functioning as operational hubs.
  • Public Safety Enhancements: Over 84,000 CCTV cameras have been installed for enhanced surveillance, along with emergency call boxes and public address systems to improve public safety.
  • Solid Waste Management: The mission has improved solid waste management practices in over 66 cities through technology integration, enhancing efficiency in waste collection and management.
  • Mobility Improvements: The development of smart roads and cycle tracks has been a significant focus, with over 1,740 kilometres of roads constructed or improved under the mission.

What are the challenges related to  Smart City Mission?

  • Disparity in Performance: While some cities have exceeded their project targets significantly, others have struggled to meet even basic completion goals. Reports indicate that 66 out of the 100 cities have not met their physical targets as of January 2023, highlighting a stark disparity in performance across regions.
  • Limited Impact on Quality of Life: Critics argue that despite substantial investments, there has been little improvement in fundamental quality-of-life issues for citizens, such as access to clean water and affordable housing. The mission’s focus on high-tech solutions has sometimes overshadowed pressing social needs.
  • Financial Constraints: Many local governing bodies face challenges in raising funds for projects due to financial limitations and resistance from citizens regarding user charges for services provided under the mission. This has hindered project execution in several cities.
  • Implementation Delays: A significant number of projects remain incomplete or are stuck at various stages due to bureaucratic hurdles and lack of coordination among stakeholders involved in the SCM.

Way forward: 

  • Strengthen Decentralized Governance: Empower local governments by aligning the SCM governance model with the 74th Constitutional Amendment. Involve elected councils and local stakeholders in planning, implementation, and decision-making to ensure projects reflect community needs and realities.
  • Enhance Financial and Technical Capacities: Provide cities with access to sustainable funding mechanisms, including better public-private partnership models, while building technical expertise for efficient project execution and addressing socio-environmental challenges comprehensively.

Mains PYQ:

Q What are ‘Smart Cities’? examine their relevance for urban development in India. Will it increase rural-urban differences? Give arguments for ‘Smart Villages’ in the light of PURA and RURBAN Mission. (UPSC IAS/2016)

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