With the identification of 30 more smart city projects, independent experts say though money is being directed from the Centre to fund innovative technological solutions in cities, it would still be a while before major infrastructure projects, that could visibly transform a city, take shape.
The major gain, they say, from having a smart city project is that it has created the concept of a Special Purpose Vehicle that is structured to ensure that promised projects are actually executed. “Such an arrangement ensures that money isn’t spent merely on paying salaries but on a substantial projects… smart traffic lights, sensors,” said N.S.N. Murty, Partner and Leader- Smart Cities, PwC India, “But for major projects like roads, buildings … these require far more intricate planning and that will take time.” PwC has worked with several cities in preparing proposals that have won a shot at procuring funds for smart city development.
Cities such as Bhopal, which was among the earliest tranche of smart cities, have implemented projects such as ‘smart poles’ and energy efficient lightning that are worth ₹200 crore and a beneficiary of smart city funds, Mr. Murty added.
Under the Smart City scheme, the Urban Development Ministry would give cities ₹500 crore over five years, with States expected to pool in an equivalent amount. Urban Development Minister Venkaiah Naidu earlier said that 6,737 projects had been approved which marked a 215% increase over the 3,138 projects cleared under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM).
However, critics say several schemes in the JNNURM, meant for the urban poor, have been removed. Moreover, in spite of 90 cities being selected for smart-city funding, it reportedly covers just 2.7% of the area, raising issues of lopsided development.