Smart Cities Mission (SCM)

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Context

• The Smart Cities Mission (SCM) has taken a back seat in this year’s list of poll promises and achievements, marking a shift from its prominence in previous political agendas.

Understanding Smart Cities:

• Origin of the Concept: The term 'Smart City' gained prominence post the 2009 financial crash, envisioned as modern urban hubs integrating advanced information and communication technologies (ICT).
• Initiatives: In response to global trends, the government aimed to adapt through initiatives like the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
• Launch of Smart Cities Mission: The Smart Cities Mission (SCM) was announced in June 2015, selecting hundred cities for a five-year duration. However, the mission lacked a clear, universally accepted definition of a smart city. 

Definition Challenges:

• Lack of Universal Definition: The SCM acknowledged the absence of a universally accepted definition of a smart city, recognizing variations based on factors like development level, willingness to reform, resources, and aspirations of residents.
• Varied Connotations: The conceptualization of a smart city varies not only across countries but also within India itself, with different cities having distinct interpretations based on their unique contexts and needs.

SCM Implementation and Evolution:

• Diverse Approaches: The absence of a singular definition allowed cities flexibility in defining their smart city visions, resulting in diverse approaches and initiatives tailored to local requirements.
• Challenges and Opportunities: While the SCM presented opportunities for urban innovation and development, challenges such as funding constraints, infrastructure gaps, and technological integration complexities were encountered during implementation.

Political Discourse Shift:

• Reduced Prominence: Despite its initial significance, the SCM has witnessed diminished attention in current political discourse and electoral agendas.
• Shift in Priorities: The decreased focus on the SCM in political narratives reflects a shift in priorities or a reevaluation of the program's impact and relevance in current governance agendas.

Smart Cities Mission (SCM)

Mission Overview:

• Main Aspects: The SCM encompassed two primary aspects:
• Area-based Development: Consisted of three components: redevelopment for city renewal, retrofitting for city improvement, and greenfield projects for city extension.
• Pan-city Solutions: Based on Information and Communication Technology (ICT), focusing on six categories including e-governance, waste management, water management, energy management, urban mobility, and skill development.
• Financial Allocation: Approximately ₹2 lakh crore was allocated for the mission, with public-private partnerships (PPP) playing a significant role in its implementation.

Extension and Adaptation:

• Timeline Extensions: Originally slated for completion in 2020, the SCM received two extensions, extending its deadline to June 2024.
• Business Model Innovation: To enhance effectiveness, a novel business model of governance was adopted, diverging from traditional city governance models.
• Special Purpose Vehicle (SPV): An SPV, led by a bureaucrat or a representative of a multinational corporation (MNC), along with other major stakeholders, was established and registered under the Companies Act.
• Reduced Role of Elected Council: The elected council had limited involvement in the governance structure, with the SPV assuming a more central role in decision-making and implementation.

Need for Next Phase:

• Completion and Transition: As the SCM nears its extended deadline, there's a growing impetus to launch the next phase of the Smart Cities initiative.
• Building on Progress: The next phase would aim to build upon the accomplishments and lessons learned from the initial phase, addressing ongoing urban challenges and evolving technological advancements.
• Enhanced Governance Models: There's a need to reevaluate governance models to ensure effective collaboration between stakeholders while maintaining transparency and accountability in city development initiatives.

Status of the Smart Cities Mission (SCM)

Overview:

• The Urban Ministry's dashboard as of April 26 indicates certain discrepancies and challenges in the implementation and outcomes of the Smart Cities Mission (SCM).

Project Outcomes:

• Total Outlay Discrepancy: Out of 8,033 projects sanctioned under the SCM, the total outlay has fallen from the expected ₹2 lakh crore to ₹1,67,875 crore, marking a 16% decrease in capital flow.
• Completed Projects: 5,533 projects worth ₹65,063 crore have been completed, while 921 projects worth ₹21,000 crore are still ongoing.
• Deadline Challenges: About 400 projects across approximately 10 cities under the Mission are unlikely to meet the extended deadline of June 2024.
• PPP Funding: Interestingly, the funding pattern reveals that not more than 5% has been sourced through the Public-Private Partnership (PPP) route.

Identified Failures of the SCM:

• Flawed City Selection Process: The competitive basis for selecting 100 cities was flawed, lacking consideration for the diverse urban realities of India.
• Exclusionary Approach: The SCM became exclusionary, focusing on only a small percentage of a city's geographical area for development.
• Inadequate Funding: With a total outlay less than $20 billion over nine years, the SCM's funding falls significantly short of the estimated $1.2 trillion required by 2030, as per reports by McKinsey.
• Misalignment with Constitutional Amendment: The SPV model designed for smart cities was not aligned with the 74th Constitutional Amendment, leading to objections from many cities regarding the governance structure.
• Displacement of Urban Poor: Smart city projects led to the displacement of people living in poorer localities, disrupting urban commons and livelihoods.
• Increased Urban Flooding: Infrastructure development projects under the SCM disrupted water channels and contours, leading to enhanced urban flooding in certain towns.

Conclusion:

• The Smart Cities Mission has encountered various challenges and criticisms, highlighting the need for comprehensive reform and realignment with ground realities to effectively address the urbanization challenges facing India.

SOURCE: THE HINDU