Key Takeaways
- India’s smart city initiative, announced in 2015, has largely failed due to poor governance and unaddressed basic needs.
- Shimla, granted smart city status after legal challenges, has only utilized 24% of its proposed budget, with limited project completion.
- Failure to engage local governance has led to worsening urban issues, such as traffic congestion and ineffective mobility plans.
The Smart Cities Initiative: A Decade Later
The Indian government initiated the smart city concept nearly ten years ago, aiming to develop 100 urban models to spur modernization. However, this vision has faltered, raising questions about its feasibility and execution. The smart city program, rooted in the Internet of Things (IoT), was ill-suited to India, where many lack access to basic services. Instead of representing advanced urban living, the projects often focus on improving fundamental amenities.
The initiative included two critical components: pan-city proposals involving IT-enabled services and Area-Based Development (ABD) focused on specific city zones. Unfortunately, governance structures bypassed local authorities, instead utilizing Special Purpose Vehicles (SPVs) managed like private firms. This decision assumed a more effective management model but excluded local councils from the process.
Shimla’s experience illustrates the broader failures of the initiative. Although initially not among the smart cities, Shimla gained the designation following legal action. Its smart city plan included various projects focusing on retrofitting and redevelopment, aiming to modernize pedestrian crossings, mobility, and transport corridors. The city also introduced eco-friendly tourism and water management strategies, covering an area of 244 acres. The overall investment was projected at ₹2,906 crore, funded by a mix of Public-Private Partnerships (PPPs), municipal bonds, and government schemes.
Despite these plans, the execution has been dismal. As of now, only ₹707 crore (24% of the budget) has been spent, with most resources allocated to ongoing initiatives rather than meaningful redevelopment. For instance, no funds have gone to revitalize key areas like Lower Bazar or Krishnanagar. Traffic conditions have worsened, while planned non-motorized mobility initiatives have not materialized; funds have instead redundantly supported minor projects, such as flower pots.
Moreover, large, unsightly escalator structures have been constructed but remain non-functional, disrupting Shimla’s iconic views. As the smart city mission nears the end of its projected timeline, evident lessons have surfaced. Projects lacking genuine urban governance and public input are destined for failure. The absence of community ownership or accountability ultimately diminishes the smart city vision, marking a significant oversight in India’s urban planning approach.
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