Industrial Automation Magazine India

Smart cities have been conceptualised keeping in mind sustainability at all levels

Published on : Friday 03-06-2022

Prakash Iyer, Independent Consultant – Infrastructure.

What is the present status of the Smart Cities Mission in India?
The Smart Cities Mission (SCM) that was launched in India on 25th June, 2015 envisaged a total investment of Rs 2,05,018 crore. Out of these, projects involving an investment of Rs 93,552 crore were proposed to be developed using Centre and State funds. Work orders have been issued for almost 100% of these government funded projects, i.e., for projects involving an investment of Rs 92,300 crore.
 
Of the total proposed projects under SCM, 7,905 projects involving an investment of Rs 1,93,143 crore (94% by value) have been tendered so far, work orders have been issued for 7,692 projects involving an investment of Rs 1,80,508 crore (88% by value). 3,830 projects involving an investment of Rs 60,919 crore (33% by value) have also been fully completed and are operational (as on 10th April 2022).
 
The financial progress in the Smart Cities Mission has accelerated too. The total expenditure in the mission was Rs 1,000 crore in 2018, it has presently increased to Rs 45,000 crore. The utilisation percentage of the total funds released by the Govt of India (GoI) to various smart cities is at 91%. 80 of the Smart Cities have operationalised Integrated Command and Control Centres. The remaining 20 will be operational by 15th August, 2022. (Source: “Smart Cities, Smart Urbanisation” conference April, 2022.)
 
Smart Cities Mission envisions developing an area within a city as a model area, which is expected to have a rub-off effect on the rest of the city. How realistic is this? 
Area based development (ABD) in the context of smart cities in India is focussed in many cases on the inner-city core which has importance from a business, commercial and often heritage perspective. Examples of ABD areas include the Rajwada area in Indore and the Maharajbada area in Gwalior. These areas are often highly congested with limited scope for interventions given issues related to space, disorganised nature of development and heritage related constraints. Such areas have therefore been identified as a priority for development by the citizens during the process of conceptualising proposals for smart cities. Funding support for these focus localities is also being made available under the Smart Cities Mission (SCM). While the capital expenditure for the ABD area is made available under SCM, the other component of smart cities is the pan city intervention which includes specific smart interventions to be implemented citywide across sectors such as urban transport, solid waste management, environment, etc. 
 
ABD coupled with the pan city component creates an aspirational template for other areas of the city to undergo a similar metamorphosis. The process of implementation of the smart cities mission has been a learning at all levels for a multitude of stakeholders including the central and state government, urban local bodies, citizens as well as the private sector. Different cities under the same SCM have achieved varying levels of progress across different timelines.
 
Therefore, while achieving the rub-off effect on other areas of the city is definitely possible, this may take a while even after drawing upon the learnings and knowledge database from SCM so far. Among the key issues that will need to be addressed for such replication are the need to obtain financing for the capital expenditure at competitive terms, and also generate enough cash flows through user charges to ensure that the project is self-sustainable at the operational level as well as able to service debt taken. Appropriate structuring of the project after a detailed assessment of technical as well as financial feasibility and stakeholder consultations at each stage of the project development process will therefore be critical.
 
Sustainability is one of the core tenets for Smart Cities. How sustainable are the Smart Cities nominated so far? Can our smart cities achieve a net zero emissions goal?
Smart cities have been conceptualised keeping in mind sustainability at all levels. Projects such as E-transport, energy efficient street lighting, air quality monitoring through smart poles, water conservation through metering and SCADA based leakage detection, waste recycling as well as scientific waste management among others are examples of sustainable initiatives planned for various smart cities. 
 
That said, it needs to be noted that smart cities as presently planned cover a selected area of the city as part of the ABD and a few city-wide initiatives as the pan-city component. Funding as well as other constraints including reluctance at the stakeholders’ end at the present instance restrict implementation of such sustainable initiatives across the city. For instance, while a city like Jaipur has a significant number of battery-operated E-rickshaws in the inner-city core, the same is not the case elsewhere in the city where fossil fuel-based transport contributes to emissions. Therefore, while net zero emissions are certainly possible in future, the same is based on a long-term road map with appropriate incentives provided to the various stakeholders to adopt sustainable practices.
 
Can smart cities be powered by clean electricity through decentralised grids? 
In view of the significant energy requirements of Indian cities, it may not be possible to have smart cities at the present instance powered entirely through clean electricity in the short to medium term; this is definitely a goal to be aimed at in the long term. Various initiatives are being adopted including rooftop solar across government buildings, open areas such as water pumping stations or water bodies as well as private dwellings. However, in the case of rooftop solar, the amount of power generated through such initiatives is unlikely to be adequate to meet the city’s energy requirements.
 
Ground mounted solar parks need to be developed for generation of large amounts of power. Such projects need large tracts of land. In view of the non-availability as well as very high cost of land in most cities, such land will necessarily need to be identified away from the city in rural areas and fed into the grid. State governments such as the Govt of Uttar Pradesh are looking at the possibility of developing such solar parks in rural areas with a view to generating enough energy to meet the requirements of cities such as Ayodhya which is being developed as a Solar City.
 
Cities such as Indore and Jabalpur have successfully set up Municipal Solid Waste to Energy plants. The quantity of energy generated contributes to the city’s energy requirements. Smart cities may therefore explore clean electricity as an option to the extent possible in the short to medium term while targeting a total switch to clean energy over the long term.
 
How do the 100 cities nominated for the Smart City Mission fare in terms of Electric Mobility – not just passenger EVs but transport systems?
In view of the significant difference in acquisition cost of electric vehicles vis-à-vis conventional vehicles, absorption of the former has not been very high so far despite subsidies being offered under the Faster Adoption and Manufacturing of Electric and Hybrid Vehicles in India (FAME) scheme. Limitations with regard to charging infrastructure as well as safety concerns are further deterrents. The total number of electric vehicles registered in India up to December 2021 is 7,96,000 as against a total base of registered vehicles of 7,45,02000 up to December 2018 and 2,17,68,502 vehicle registrations in 2019-20 alone.
 
While these issues are being addressed, the government is providing a huge impetus to electric vehicles through large tenders for electric bus and three-wheeler procurement for deployment across various cities. EESL recently closed a tender for 150,000 electric three-wheelers, at prices 18-20 per cent lower than the retail price. Convergence Energy Services (CESL), a wholly owned subsidiary of Energy Efficiency Services (EESL) has floated a tender for 5,450 single-decker buses and 130 double-decker buses at an estimated cost of Rs 5450 crore, which is expected to lead to greater cost efficiencies and faster deployment of electric vehicles in public transport across various cities including smart cities. There has not been much momentum with regard to goods transport using electric vehicles for the above reasons. 
 
How realistic and achievable is the goal to achieve 100% plug-in electric vehicles by 2030?
The said target looks ambitious given the reasons explained in the above section. While the target and thrust are in the right direction, the initial thrust on 100% electric vehicles will necessarily need to be focussed on public passenger transport in the first phase with subsequent focus on private vehicles and goods transport where the barriers to adoption are significantly higher.
 
Is the present ranking of Smart Cities in India based on realistic parameters?
The present ranking of smart cities in India is aimed primarily at the progress of making the city ‘Smart’ under the SCM. The ranking is dynamic and based on a methodology that is quantifiable. The ranking is realistic and comprehensive since it is based on various key parameters easing urban life. These include social aspects, governance, culture, urban environment, sanitation, economy, built environment, water and urban mobility. Additional parameters of sustainable business model of Integrated Command and Control Centres and innovation in Covid-19 management were also included in the ranking for the pandemic years. Performance-based qualities such as administrative performance, financial matters as well as project completion and implementation are also taken into consideration when ranking smart cities.

Prakash Iyer is an infrastructure advisory professional with over 23 years of experience mainly spanning consulting and investment banking. He has advised governments, the private sector, lenders and funding agencies across infrastructure advisory, corporate advisory and investment banking mandates across various infrastructure sub-sectors such as Smart cities, regional development, tourism, water supply, solid waste management, waste water treatment, urban infrastructure, urban transport, transportation, roads, oil and gas, power, real estate, industrial parks and logistics with an emphasis on projects being developed through Public Private Partnerships (PPPs). He can be reached at [email protected]

(The views expressed in interviews are personal, not necessarily of the organisations represented)