Smart Cities Mission needs to adopt sustainability, urban local bodies

The concept of "Smart Cities" is based on the principle of harnessing data-based smart solutions to enhance ease of living for its residents

Smart cities, city, population, society, future, people, tech
Business Standard Editorial Comment Mumbai
3 min read Last Updated : Apr 02 2025 | 10:59 PM IST
As the deadline for the Smart Cities Mission (SCM) ended on March 31, its success and limitations in solving urban challenges and enabling efficient city management deserve greater attention. According to an analysis by this newspaper, so far, only 18 of the 100 selected cities have completed all projects to date, with 50 per cent of them in Uttar Pradesh and Tamil Nadu. In most cases, projects under the SCM involved cities scrambling to fix crumbling infrastructure rather than achieving a futuristic overhaul. Recent World Bank estimates suggest India needs to invest around ₹70 trillion in urban infrastructure over the next 15 years — an average of ₹4.6 trillion annually — to meet its rapidly expanding urban infrastructure needs. Meanwhile, this year’s Economic Survey highlighted that, since the launch of the SCM in 2015, projects worth ₹1.5 trillion were completed till January 13 this year. It clearly remains a paltry sum relative to the amount required.
 
The concept of “Smart Cities” is based on the principle of harnessing data-based smart solutions to enhance ease of living for its residents. The real-time data, collected from a wide array of sources such as sensors and other public databases, can be leveraged to provide insights that can improve a city’s functioning. For instance, artificial-intelligence algorithms can estimate traffic patterns, and help in waste management or water demand. Unfortunately, the SCM’s objective got diluted over time as it tried to achieve both technological modernisation as well as upgrade civic infrastructure in the absence of adequate funding. Evidently, one single policy remains inadequate to tackle problems involving urban infrastructure, housing, education, and living standards. To foster economic growth, sustainability should also remain at the core of urban planning. The roof collapse at Delhi airport owing to heavy rain on June 28 last year highlights that extreme climate events increase risks of asset loss and service disruption, potentially compromising existing urban infrastructure. Thus, data-oriented solutions may not be enough to contribute to a city’s functioning. It is equally important that cities invest in climate-smart and disaster-resilient infrastructure. The economic benefits of integrating disaster and climate-risk assessments with urban planning are significant due to long-term savings in reduced disaster-recovery costs, fewer disruptions to economic activities, and substantial improvements in public health outcomes.
 
At the same time, the need for strengthening urban local bodies (ULBs) like municipal corporations cannot be overemphasised. While empowering municipal bodies with greater administrative autonomy and financial independence is crucial for improved urban governance, a report by the Reserve Bank of India on municipal finances stresses that most ULBs are unable to generate resources to improve service delivery. Over 50 per cent of municipal corporations generate less than half their revenue independently, with government transfers rising by over 20 per cent in 2022-23. Other than strengthening municipal revenue streams, there is also a need to come up with credible and granular master plans for cities.  Often, the existing master plans do not have the requisite financing, making them less credible and resulting in haphazard land-use planning and growth.

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Topics :smart citiesBusiness Standard Editorial CommentSustainability

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