Smart Strategy to Smart India
Cities accommodate nearly 31% of India's current population and contribute 63% of GDP (Census 2011). Urban areas are expected to house 40% of India's population and contribute 75% of India's GDP by 2030. This requires comprehensive development of physical, institutional, social and economic infrastructure. All are important in improving the quality of life and attracting people and investment, setting in motion a virtuous cycle of growth and development. Development of Smart Cities is a step in that direction.
The Smart Cities Mission is an innovative and new initiative by the Government of India to drive economic growth and improve the quality of life of people by enabling local development and harnessing technology as a means to create smart outcomes for citizens.
SMART CITIES MISSION STRATEGY
- Pan-city initiative in which at least one Smart Solution is applied city-wide
- Develop areas step-by-step – three models of area-based developments
- Retrofitting,
- Redevelopment,
- Greenfield
COVERAGE AND DURATION
The Mission will cover 100 cities and its duration will be five years (FY2015-16 to FY2019-20). The Mission may be continued thereafter in the light of an evaluation to be done by the Ministry of Urban Development (MoUD) and incorporating the learnings into the Mission.
FINANCING OF SMART CITIES
The Smart City Mission will be operated as a Centrally Sponsored Scheme (CSS) and the Central Government proposes to give financial support to the Mission to the extent of Rs. 48,000 crores over five years i.e. on an average Rs. 100 crore per city per year. An equal amount, on a matching basis, will have to be contributed by the State/ULB; therefore, nearly Rupees one lakh crore of Government/ULB funds will be available for Smart Cities development.
WHAT ARE THE CHALLENGES?
- This is the first time, a MoUD programme is using the 'Challenge' or competition method to select cities for funding and using a strategy of area-based development. This captures the spirit of 'competitive and cooperative federalism'.
- States and ULBs will play a key supportive role in the development of Smart Cities. Smart leadership and vision at this level and ability to act decisively will be important factors determining the success of the Mission.
- Understanding the concepts of retrofitting, redevelopment and greenfield development by the policy makers, implementers and other stakeholders at different levels will require capacity assistance. Major investments in time and resources will have to be made during the planning phase prior to participation in the Challenge. This is different from the conventional DPR-driven approach.
- The Smart Cities Mission requires smart people who actively participate in governance and reforms. Citizen involvement is much more than a ceremonial participation in governance. The participation of smart people will be enabled by the Special Purpose Vehicle (SPV) through increasing use of ICT, especially mobile-based tools.
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