Need for Smart cities

Part 2

Smart Cities: Smarter Solutions for better tomorrow

Need for Smart cities

Cities are engines of growth for the economy of every nation, including India. This makes them the center of economic activity, opportunities and aspirations, causing migration from neighboring towns and cities. McKinsey “Granularity of Growth” work (2010) though a little dated is still a very good reference to bring forth this point. It states by 2030, top 3 cities in India will be size of some countries today (2010, at the time of analysis) and the next 6 cities will become 2-4X of what Mumbai is today (2010, at the time of analysis).

Need for Smart cities

The sector is characterized by low investment requirement, operational flexibility and location wise mobility. This enables providing employment at lower capital cost and also helps in correcting regional imbalances through industrialization of rural and backward areas, towards an efficient and inclusive growth model. Micro, Small and Medium Enterprises (MSME) contribute nearly 8 percent of the country’s GDP, 45 percent of the manufacturing output and 40 percent of the exports. They provide the largest share of employment after agriculture. They are the nurseries for entrepreneurship and innovation. They are widely dispersed across the country and produce a diverse range of products and services to meet the needs of the local markets, the global market and the national and international value chains

Introduction

Further, at the national level, it is estimated that cities are likely to inhabit 40% of India’s population by 2030, and contribute nearly 75% of the national GDP in the next 15 years. The global experience is that a country’s urbanization beyond 30% happens at a much faster pace till it reaches about 60- 65%. This makes it critical for India as it stands at a point of transition now. The speed of urbanization will exert immense pressure on the urban infrastructure, urban finance, natural resources, quality of urban life etc. Thus, planning for urban cities become critical to magnify the development potential and arrest underlying stress. With this vision, the Government of India, led by Prime Minister Narendra Modi, has set up the task on development of 100 Smart Cities in the country.

Introduction

Coverage

The launch of three mega urban schemes in India, i.e., Smart Cities Mission, Atal Mission for Rejuvenation and Urban Transformation (AMRUT), and Housing for All in urban areas, will set in motion the process of urban transformation to enable better living. The missions are new, innovative and focused on pressing needs to improve the quality of life for citizens today, and in the future. With the start of these mission, many ministries have followed suit focusing on their departments and areas of impact. As a result, there is a much larger coverage coming out of the aforesaid missions and programs:

Coverage

1. Smart Cities: The Smart cities mission will cover 100 cities and its duration will be five years (FY2015-16 to FY2019-20). The Mission may be continued thereafter in the light of an evaluation to be done by the Ministry of Urban Development (MoUD) and incorporating the learnings into the Mission. The government has allocated an outlay of Rs 98,000 crore (US$ 15,329.26 million) to execute 100 smart cities, and the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), which is an urban rejuvenation programme for 500 towns and cities in next 5 years.

Coverage

The cities coverage under 100 Smart City Mission is captured below

Coverage

The list of first 20 Smart cities include: o Bhubaneswar, Pune, Jaipur, Surat, Kochi, Ahmedabad, Jabalpur, Vishakhapatnam, Solapur, Davangere, Indore, NDMC, Coimbatore, Kakinada, Belagvi, Udaipur, Guwahati, Chennai, Ludhiana, Bhopal

Coverage

2. Smart Heritage Cities: The Ministry of Urban Development launched the National Heritage City Development and Augmentation Yojana (HRIDAY) scheme in January 2015. The scheme aims to preserve and revitalize soul of the heritage city to reflect the city’s unique character by encouraging aesthetically appealing, accessible, informative & secured environment. With a duration of 27 months (completing in March 2017) and a total outlay of INR 500 Crores, the Scheme is being implemented in 12 identified Cities namely, Ajmer, Amaravati, Amritsar, Badami, Dwarka, Gaya, Kanchipuram, Mathura, Puri, Varanasi, Velankanni and Warangal.

Coverage

3. Smart Ports: The government plans to connect 12 smart cities with the maritime hubs at an estimated cost of Rs 50,000 crore (US$ 7821.05 million). As per the draft guidelines: o Each of these city to be constructed at a cost of Rs 3,000-4,000 crore. o Green energy generation to be prioritized in these smart cities o Port water to be recycled, vehicles to be incentivized to use biogas, which will be produced from waste at the ports o Emphasis on SEZs, ship-breaking and ship-building centers, allied port activities in these cities

Coverage

4. Smart Armed Force Stations: There is a proposal to develop 6 smart armed force stations (SAFS). Of the 6 stations; 3 will be army stations, 2 of air force and 1 of the navy. 5. Smart Aerotropolis: As more and more aviation-oriented businesses are being drawn to airport cities and along transportation corridors radiating from them, a new urban form is emerging—the Aerotropolis. It consists of an airport city and outlying corridors and clusters of aviation-linked businesses and associated residential development. The West Bengal government plans to develop first airport city called the Bengal Aerotropolis Pvt Ltd (BAPL) at Andal in Burdwan district.

Coverage

6. Smart Railways: Through this the government is aiming to target higher investments via resource mobilization, prioritize decongestion of heavy haul routes and speed up trains. Providing better passenger amenities and safety, and improving railway systems through sustainable measures would also be the focus areas. Further, under the specific world-class station programme, the task will be to upgrade and revamp the existing railway stations. New Delhi Station will be the first station to be redeveloped within this programme spread over 86 hectares land with 18 platforms to handle in excess of 500,000 passengers per day. The Surat railway station is also to follow with 2.27 lakh square meter for redevelopment of new station. Along with this a total of 1,052 stations have been identified for upgradation of passenger amenities. It is proposed to include 200 more stations under this scheme.

Coverage

7. Smart Villages: Saansad Adarsh Gram Yojana (Parliamentarian’s Model Village Scheme aims to ensure holistic development of identified gram panchayats, improve quality and standard of life, generate models of local development and local governance, nurture and replicate. Under this programme, Andhra Pradesh is the first state to launch the ‘Smart Village’.

Coverage

8. DMIC: Delhi - Mumbai Industrial Corridor (DMIC) is India's most ambitious infrastructure programme aiming to develop new industrial cities as "Smart Cities" and converging next generation technologies across infrastructure sectors. The programme will provide a major impetus to planned urbanization in India with manufacturing as the key driver. In addition to new Industrial Cities, the programme envisages development of infrastructure linkages like power plants, assured water supply, high capacity transportation and logistics facilities as well as softer interventions like skill development programme for employment of the local populace. In the first phase eight new industrial cities are being developed. The programme has been conceptualized in partnership and collaboration with Government of Japan.

Coverage

The Delhi Mumbai Industrial Corridor (DMIC) running through six states Delhi, Western Uttar Pradesh, Southern Haryana, Eastern Rajasthan, Eastern Gujarat, aims to build a dedicated freight corridors along the Delhi-Mumbai. The cities that have been identified are Dholera in Gujarat, Shendra-Bidkin in Maharashtra, Greater Noida in UP, Ujjain (MP) and Gurgaon in Haryana.

Coverage

9. SEZ: Guizhou International Investment Corp (GIIC) has signed a MoU with Kakinada SEZ (KSEZ) to develop industrial park over 2,000-acre land for setting up Chinese high-end equipment manufacturing plants. It will invest $500 million in developing the infrastructure and various facilities of the industrial park. These Chinese companies will invest $2-3 billion in setting up their operations over the next 5 years and generating more than 5,000 jobs for both skilled and unskilled workers.

THANK YOU

Email: jyoti.gadia@resurgentindia.com Call Us: +91 124 4754550

www.resurgentindia.com

Read full report on: http://blog.resurgentindia.com/empowering-msmes-role-of-banks-financial-institutions-it-skill-development-rating-agencies/