Why did the implementation of smart cities bypass local government and depend on Special Purpose Vehicles? What has happened to the mission in Shimla?
The story so far: Almost a decade has passed since the Indian government announced the concept of “smart cities” as the new lighthouses of urbanisation. The June 2015 announcement of 100 smart cities aimed to create models of urban development. However, these lighthouses of urbanity have now been relegated to the annals of India’s urbanisation history.
The smart cities initiative was based on the Internet of Things (IoT), a framework that works well in advanced capitalist countries where basic utilities are already in place. In contrast, in India, where basic services are still out of reach for many, “smart cities” essentially mean providing fundamental amenities to residents. The plan included two key components — pan-city proposals which includes IT-enabled services like mobility and waste management; and Area-Based Development (ABD) which was restricted to specific zones within a city, focusing on retrofitting, redevelopment, and greenfield projects. Additionally, governance of these projects bypassed local governments, relying instead on Special Purpose Vehicles (SPVs) registered under the Companies Act, and managed like private companies. City councils were excluded, based on the assumption that private company-like structures could deliver better results.
The story so far: Almost a decade has passed since the Indian government announced the concept of “smart cities” as the new lighthouses of urbanisation. The June 2015 announcement of 100 smart cities aimed to create models of urban development. However, these lighthouses of urbanity have now been relegated to the annals of India’s urbanisation history.
The smart cities initiative was based on the Internet of Things (IoT), a framework that works well in advanced capitalist countries where basic utilities are already in place. In contrast, in India, where basic services are still out of reach for many, “smart cities” essentially mean providing fundamental amenities to residents. The plan included two key components — pan-city proposals which includes IT-enabled services like mobility and waste management; and Area-Based Development (ABD) which was restricted to specific zones within a city, focusing on retrofitting, redevelopment, and greenfield projects. Additionally, governance of these projects bypassed local governments, relying instead on Special Purpose Vehicles (SPVs) registered under the Companies Act, and managed like private companies. City councils were excluded, based on the assumption that private company-like structures could deliver better results.
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