About the news

• The concept of “Smart Cities” gained prominence post-2009, emphasizing integrated infrastructure, advanced ICT, and sustainable urban development.
• The NDA-1 government initiated the SCM in June 2015, selecting 100 cities without a universally accepted definition. It stated that the meaning of a Smart City varies globally and locally based on development, resources, and aspirations.

 Two Major Aspects of SCM:

Area-Based Development:

• Redevelopment: Renewing existing urban areas.
• Retrofitting: Improving existing urban areas.
• Greenfield Projects: Developing new urban areas.

Pan-City Solutions: Focus on ICT-based improvements across various sectors:

• E-governance
• Waste management
• Water management
• Energy management
• Urban mobility
• Skill development

Funding and Governance

• Total planned outlay: ₹2 lakh crore, with a significant reliance on public-private partnerships (PPP).
• Governance through Special Purpose Vehicles (SPVs), often bypassing traditional city governance models and limiting the role of elected councils.

Current Status (as of April 2024)

• Total Projects: 8,033 projects sanctioned.
• Funding: Reduced from ₹2 lakh crore to ₹1,67,875 crore (16% decrease).
• Completed Projects: 5,533 projects worth ₹65,063 crore.
• Ongoing Projects: 921 projects worth ₹21,000 crore.
• PPP Involvement: Less than 5% of the funding sourced through PPPs.

Challenges

• About 400 projects in around 10 cities unlikely to meet the June 2024 deadline.
• Limited to small geographic areas, e.g., only 1% of a city’s area.
• Diverse urban contexts not fully considered.
• ₹1,67,875 crore falls significantly short of the $1.2 trillion estimated needed by 2030.
• SPV model conflicts with the 74th Constitutional Amendment, leading to objections from various cities.
• Projects led to displacement of poorer communities and disruption of urban commons.
• Infrastructure projects compromised water channels and increased flood risks in historically non-flood-prone areas.