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Smart Cities–Balancing Economic, Social &Environmental Development

Gautam Narayan Associate Director –Urban Practice CRISIL Risk and Infrastructure Solutions Limited

April, 2016

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Agenda

Context

Smart Cities evolution

Some considerations of the Smart cities Mission

Example of Solapur

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Global context

Urbanization as a mega trend

– Megacities to become larger

– Cities are home to large populations & economies– “ Too big to fail”

– Improve resilience and reduce vulnerabilities to climate change & other risks

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746

3154

2400

6300

30%

54%

66%

1950 2014 2050 Total in 2050

UN estimates absolute increase in urban

population from 1950-2050 – around 5.6

billion

– 43% of increase from 2014-50

– Megacities of 10 million or more to

increase from 10 in 1990 to 41 in 2030

*source : World Urbanisation Prospects, 2014, UN

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Indian context

Estimated total investment in urban infrastructure for2012-31 is Rs. 39.2 lakh crore at

2009-10 prices (source: HPEC report on urban infrastructure & services)

– 34.1 lakh crore for asset creation

– 4.1 lakh crore for renewal and redevelopment including slums

– 1 lakh crore for capacity building

Degree of under spending on urban services by ULBs estimated at 30% for the best cities to

around 5-6% in the worst cases

India’s economic and social future tied to how we manage our cities

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Year Contribution of Urban Areas in IndiaPopulation GDP

Current 32% 63%2030 (estimated) 40% 75%

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Smart cities – evolution

Smart city concepts have expanded to include areas such as governance,

transport & mobility, social services, human capital , quality of life, citizen

participation etc.

Smart city indicators and measures are increasingly focusing on

– Measuring city services performance over a period of time

– Comparability of indicators

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Technology and data for improving city infrastructure & services

Planning, developing and managing efficient & sustainable urban systems

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Smart Cities- considerations

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Integrate

• Data • Technology • Institutions • People

Improve planning

Energy & overall efficiency

Governance & accessibility

Increase resilience

Environment

Better citizen services

Outcome: Better quality of life

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Key steps for Smart Cities

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Citizen engagement

Identify goals

Intelligent application of solutions

Pilot projects –see what

works

Accessibility- institutions & services

Collaborative innovation

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Smart City Mission considerations

Key steps reflected in the Smart City

Mission

– Develop pilot initiatives which can be replicated

city wide- Area Based Development

– Pan City Development- focus on IT based

solutions which can substantially impact citizens

– Provides opportunities to innovate during

development

Building in

– Citizen engagement

– Citizen services

– Smart solutions

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Adequate water supply & assured electricity supply

Sanitation including solid waste management

Efficient urban mobility and public transport affordable housing, especially for the poor,

Robust IT connectivity and digitalization,

Good governance, especially e-Governance and citizen participation,

Sustainable environment,

Safety and security of citizens, particularly women, children and the elderly, and

Health and education

Core infra elements

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Challenges to be addressed

Smart city development – Has to meet the existing infrastructure deficit as well as the additional ICT and other

smart components

– Inadequate mapping of existing infrastructure – this needs to be done before smart city initiatives are planned on top of the existing infrastructure

ULB capacity for smart city planning– Limited capacity for undertaking holistic smart city planning and development

– Resource constraints :Cities primarily dependent on grants for creation of infrastructure. limited initiatives on leveraging own sources and grants for external borrowings

– Developing well defined and bankable smart city projects is a huge challenge

Integrating smart city services – Different agencies responsible for different infrastructure and governance aspects –

Municipal corporations, Development Authorities, Boards / Parastatals – How do you coordinate across all these agencies for integrated development of Smart Cities?

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Solapur snapshot

The city of Solapur was one of the 20 cities selected

after the first challenge round

Strategic focus areas – post citizen engagement

– Address the huge scarcity of water and high NRW

– Address out migration for better economic opportunities

& revive the economy

– Increase availability of citizen services and time for

processing licenses and clearances

– Optimizing use of public resources

– Preserve existing heritage and cultural icons

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Solapur snapshot ….

Goals for the city

– Upgrading basic infrastructure – water supply and waste management

– Need for better & more accessible public spaces

– Need to address rising pollution

– Optimise use of limited resources – promote waste water recycling, waste to energy,

convert public spaces to multi-utility spaces

– Heritage development that balances preservation with economic growth

– Reduce economic dependence on textile industry by diversifying the economy and

improving ease of doing business

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Solapur snapshot ….

Core Objective: develop an area which upholds the identity of the city and reflects its

history.

Philosophy

– encourage citizens develop a sense of belonging to their neighborhoods and use streets & public spaces as extensions of their habitats.

– provide necessary infrastructure and clean, vibrant spaces which shall be a catalyst to people living active, social and healthy lives

Basis for area selection – Core area of Solapur

Unplanned development- suffers from severe infrastructure deficiencies while the surrounding areas have been developed under approved town planning schemes

Use and Impact of the area based development – Includes CBD of the city, major government offices, historical core, Siddheshwar Temple and lake which are high-usage areas of the city.

City's heritage – Includes landmarks like Bhuikot Fort built during 14th century, Dr. Kotnis’s House and a century old Indra Bhavan which now serves as Municipal Corporation Office.

High density – Constitutes 2.3% of the city area and houses 17% of the city's population.

Presence of major transit nodes – includes major transit nodes like the railway station and major bus stations

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Solapur snapshot ….

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Social Interventions Rejuvenating the historical area by introducing night-bazaar, promoting culture and history through

light and sound shows with the backdrop of the Bhuikot Fort.

make pathways barrier free, footpaths shall have ramps to enable easy access for wheelchair bound. Walkways shall have small innovative spaces like parklets, open gyms, street furniture and e-toilets.

Economic interventions Night tourism to be promoted with the fort backdrop to be used for light and sound shows which shall

encourage local 'chaupaati' (informal street food) business to flourish.

Hawkers in gaothan area streets shall be allocated space on perpendicular pedestrianized streets.

Environmental interventions Rooftops of municipal corporation offices, ward offices, water pumping stations, bus depot owned by

Solapur Municipal Transport and roof top of Indira Gandhi Cricket Stadium will be installed with solar photovoltaic systems. (Solapur is located in Solar intensity zone 1)

Rainwater harvesting proposed to be mandatory; Planting of vegetation on footpaths and the development of rain gardens shall filter and use storm water.

100% open defecation free area and 100% waste management –– 51 barrier free E-toilets proposed;

– To facilitate segregation at source, different colored recyclable bags for different types of waste (organic waste, combustible and recyclable) to be collected, sorted as per the type and sent for relevant processing

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Summary

Smart cities are not about large infrastructure and technologies but about efficient

and smart initiatives at the local level

Citizen engagement should be the primary driver for initiatives

Increasing accessibility of institutions and services to people

The solutions should drive technological choices – not vice versa

Optimum use of available resources is a key principle underpinning smart cities -

better to start small with pilot initiatives as this promotes innovation which can be

built into subsequent initiatives

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Thank You

CRISIL Risk & Infrastructure Solutions LimitedA Subsidiary of CRISIL Limited, a Standard & Poor’s Company

www.crisil.com