Challenges of Smart Cities Initiative

January 23, 2025

Since its launch in 2015, India’s Smart Cities Mission aimed to transform urban landscapes by developing 100 cities with advanced infrastructure and sustainable practices. However, nearly a decade later, the initiative has faced challenges and criticism, with many projects failing to meet their objectives. The concept of a “smart city” in India has often been confused with simply providing basic amenities rather than integrating advanced technologies.

What is a Smart City?

A smart city is typically defined as an urban area that uses digital technology to enhance performance across various sectors, including transport, energy, and waste management. In India, the focus shifted towards meeting basic infrastructure needs while incorporating smart solutions. This contrasts with global definitions, which often emphasise advanced technology and efficiency.

Objectives of the Smart Cities Mission

Provide core infrastructure and improve quality of life.
Promote a clean and sustainable environment.
Implement smart solutions for urban challenges.
Foster sustainable and inclusive development.

Key Components of the Mission

Area-Based Development (ABD): Focuses on retrofitting, redevelopment, and greenfield projects.
Pan-City Solutions: Involves implementing Information and Communication Technology (ICT) across various sectors.

Governance Structure

The governance of the initiative relied on Special Purpose Vehicles (SPVs) created under the Companies Act. This approach sidelined local governments, assuming that corporate-like structures would yield better results. However, this model has been critiqued for lacking accountability and public involvement.

Challenges Faced

The Smart Cities Mission has encountered numerous challenges, including:

Lack of Clarity: No clear definition of what constitutes a smart city, leading to ineffective resource allocation.
Top-Down Approach: The exclusion of elected representatives undermined democratic governance.
Flawed City Selection: The competitive selection process overlooked the unique urban realities of Indian cities.
Inadequate Funding: The financial resources allocated were insufficient to achieve the mission’s ambitious goals.

Case Study – Shimla

Shimla became a smart city after facing legal challenges. Initially excluded, it later got smart city status.
The plan included improving old areas (retrofitting) and building new ones (redevelopment), focusing on better pedestrian and traffic management.
However, progress has been slow and ineffective.

Financial Details:

The total budget for Shimla’s smart city project was ₹2,906 crore.
Funding came from Public-Private Partnerships (PPP), municipal bonds, and government schemes.
So far, only ₹707 crore has been spent, and a significant portion of the funds remains underutilized or poorly managed.

Challenges and Issues:

Many key projects are incomplete.
Traffic congestion has worsened instead of improving.
Plans for non-motorized mobility, like walkways, have been neglected.
Money has been wasted on unimportant things like flower pots.
Large structures built for escalators are not operational and block the view, adding to the inefficiency.

Current Status and Future Prospects

Initially set for completion by 2020, the mission has faced multiple extensions, with the latest deadline in June 2024.
The overall progress has been slow, and many projects remain incomplete or poorly executed.

Recommendations for Improvement

To strengthen the Smart Cities Mission, experts suggest:

Appointing dedicated CEOs for better governance.
Including local stakeholders in project planning and execution.
Focusing on comprehensive pan-city projects for holistic urban development.
Enhancing capacity building for Urban Local Bodies (ULBs) to improve project outcomes.
The lessons learned from the Smart Cities Mission highlight the importance of public participation, effective governance, and a clear vision for urban development in India.

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