Evaluation of Smart Cities Mission (SCM)

Source-This post on Evaluation of Smart Cities Mission (SCM) has been created based on the article “An overview of the Smart Cities Mission” published in “The Hindu” on 13 May 2024.

UPSC Syllabus-GS Paper-1– Urbanization, their problems and their remedies and GS Paper-2- Government Policies and Interventions for Development in various sectors and Issues arising out of their Design and Implementation.

Context-The Smart Cities Mission (SCM), a flagship programme of the current government has taken a back seat in this year’s list of poll promises and achievements.The article highlights various shortcomings in the implementation of Smart Cities Mission.

 What is a Smart City?

1) Origin of the term-The term ‘Smart City’ has been widely used since 2009, after the global financial crash, to describe new cities with advanced ICT and communication networks.

2) Components of SCM– The SCM had two main aspects

A) Area-based development consisting of three components — redevelopment (city renewal), retrofitting (city improvement), and green field projects (city extension)

B) Pan-city solutions based on ICT-It comprises of some 6 categories that include e-governance, waste management, water management, energy management, urban mobility, and skill development.

3) Funding-Around ₹2 lakh crore was allocated for the mission, with public-private partnerships (PPP) as an important driver.

4) SPV model– A business-style approach to governance was taken by using Special Purpose Vehicles (SPVs). These   were led by government officials or representatives from multinational corporations.

Read more- Smart city’s nerve centre

What is the status and funding of SCM?

1) As of April 2023, the total outlay for the SCM has fallen from ₹2 lakh crore to ₹1,67,875 crore (16% less than projected).

2) 5,533 projects worth ₹65,063 crore have been completed, while 921 projects worth ₹21,000 crore are still ongoing.

3) Around 400 projects in 10 cities are unlikely to meet the extended deadline of June 2024.

4) Only 5% of the funding has come through the PPP route.

What are the shortcomings and criticisms of SCM?

1) Defining “Smart Cities” in Context– The mission didn’t offer a clear definition of a smart city. It pointed out that there isn’t a single definition because what makes a city “smart” can differ based on factors like its development level, openness to change, resources, and what the people living there want.

2) Faulty selection-The selection of 100 cities through competition was flawed because of the diverse urban situations. The scheme didn’t consider the real conditions of urban India, where growth is dynamic, unlike the more stable situation in the West.

3) Exclusionary Approach-It turned into a scheme that excluded most of the city, focusing development on less than 1% of its area. For ex- Chandigarh got ₹196 crore in the first round of funding but spent it all on various projects like smart water meters, Wi-Fi zones, and waste management, all concentrated in one area—sector 43.

4) Funding Gap– According to two big reports by McKinsey, India needs $1.2 trillion by 2030 to improve its cities. In comparison, ₹1,67,875 crore over nine years were allocated which is only around 0.027% of what’s needed.

5) Issues With Governance Model– The special purpose vehicle (SPV) model for smart cities was not aligned with the 74th Constitutional Amendment.Further,critics say the design was too centralized.

6)Displacement of Weaker Sections– In urban India, over 49% of people live in slums, as reported by the World Bank. During the implementation of smart city projects, many people from poorer areas were forced to move.For ex- Street vendors were relocated.

7) Unintended Consequences of SCM -Some towns that were historically not prone to flooding became vulnerable due to infrastructure development projects that disrupted water channels and contours.

Question for practice

What are the shortcomings and criticisms of SCM?