Friday, September 25, 2015

Creating Smart Cities - 2


The strategic components of Area-based development in the Smart Cities Mission are city improvement (retrofitting), city renewal (redevelopment) and city extension (greenfield development) plus a Pan-city initiative in which Smart Solutions are applied covering larger parts of the city.

Let us get into the descriptions of the three models of Area-based Smart City Development: Retrofitting will introduce planning in an existing built-up area to achieve Smart City objectives, along with other objectives, to make the existing area more efficient and liveable. In retrofitting, an area consisting of more than 500 acres will be identified by the city in consultation with citizens. Depending on the existing level of infrastructure services in the identified area and the vision of the residents, the cities will prepare a strategy to become smart. Since existing structures are largely to remain intact in this model, it is expected that more intensive infrastructure service levels and a large number of smart applications will be packed into the retrofitted Smart City. This strategy may also be completed in a shorter time frame, leading to its replication in another part of the city.

Redevelopment will effect a replacement of the existing built-up environment and enable co-creation of a new layout with enhanced infrastructure using mixed land use and increased density. Redevelopment envisages an area of more than 50 acres, identified by Urban Local Bodies (ULBs) in consultation with citizens. For instance, a new layout plan of the identified area will be prepared with mixed land-use, higher FSI and high ground coverage. Two examples of the redevelopment model are the Saifee Burhani Upliftment Project in Mumbai (also called the Bhendi Bazaar Project) and the redevelopment of East Kidwai Nagar in New Delhi being undertaken by the National Building Construction Corporation.

Greenfield development will introduce most of the Smart Solutions in a previously vacant area (more than 250 acres) using innovative planning, plan financing and plan implementation tools (e.g. land pooling/ land reconstitution) with provision for affordable housing, especially for the poor. Greenfield developments are required around cities in order to address the needs of the expanding population. One well known example is the GIFT City in Gujarat. Unlike retrofitting and redevelopment, greenfield developments could be located either within the limits of the ULB or within the limits of the local Urban Development Authority (UDA).

Pan-city development envisages application of selected Smart Solutions to the existing city-wide infrastructure. Application of Smart Solutions will involve the use of technology, information and data to make infrastructure and services better. For example, applying Smart Solutions in the transport sector (intelligent traffic management system) and reducing average commute time or cost to citizens will have positive effects on productivity and quality of life of citizens. Another example can be waste water recycling and smart metering which can make a substantial contribution to better water management in the city.

The Smart City proposal of each shortlisted city is expected to encapsulate either a retrofitting or redevelopment or greenfield development model, or a mix thereof and a Pan-city feature with Smart Solution(s). It is important to note that pan-city is an additional feature to be provided. Since Smart City is taking a compact area approach, it is necessary that all the city residents feel there is something in it for them also. Therefore, the additional requirement of some (at least one) city- wide smart solution has been put in the scheme to make it inclusive.

Financing of Smart Cities 
The Smart City Mission will be operated as a Centrally Sponsored Scheme (CSS) and the Central Government proposes to give financial support to the Mission to the extent of Rs. 48,000 crores over five years i.e. on an average Rs. 100 crore per city per year. An equal amount, on a matching basis, will have to be contributed by the State/ULB; therefore, nearly Rupees one lakh crore of Government/ULB funds will be available for Smart Cities development. The project cost of each Smart City proposal will vary depending upon the level of ambition, model and capacity to execute and repay. It is anticipated that substantial funds will be required to implement the Smart City proposal and towards this end, Government grants of both the Centre and State will be leveraged to attract funding from internal and external sources.

The success of this endeavour will depend upon the robustness of SPV’s revenue model and comfort provided to lenders and investors. A number of State Governments have successfully set up financial intermediaries (such as Tamil Nadu, Gujarat, Orissa, Punjab, Maharashtra, Karnataka, Madhya Pradesh and Bihar) which can be tapped for support and other States may consider some similar set up in their respective States. Some form of guarantee by the State or such a financial intermediary could also be considered as instrument of comfort referred to above. It is expected that a number of schemes in the Smart City will be taken up on PPP basis and the SPVs have to accomplish this.

39 comments:

  1. Your blogs and information attracts me to come back again n again. keep it up..

    lake front homes in saratoga springs

    ReplyDelete
  2. Playa del Carmen real-estate pros. We are the Premier Playa del Carmen property agency with more than 10 10 years of productive and risk-free investment attributes.http://www.buyplaya.com/

    ReplyDelete
  3. Thanks for the information and links you shared this is so should be a useful and quite informative!
    facility management process

    ReplyDelete
  4. This is a brilliant writing and very pleased to find this site. I couldn’t discover to much different information on your blog. I will surely be back again to look at some other important posts that you have in future.
    Removals London

    ReplyDelete
  5. Thanks for the information and links you shared this is so should be a useful and quite informative!
    Adam Milstein

    ReplyDelete
  6. Thanks for the information and links you shared this is so should be a useful and quite informative!townhouses for sale in atlanta

    ReplyDelete
  7. Thanks for the information you shared that's so useful and quite informative and i have taken those into consideration....
    commercial immobilier

    ReplyDelete
  8. I wanted to thank you for this great read. Your blog is one of the finest blog . Thanks for posting this informative article.
    property renovation

    ReplyDelete
  9. The blog article very surprised to me! Your writing is good. In this I learned a lot! Thank you!
    property hamilton

    ReplyDelete
  10. I think this post will be a fine read for my blog readers too, could you please allow me to post a link to my blog. I am sure my guests will find that very useful.
    home mover houston tx

    ReplyDelete

  11. They have been the pioneers in urban development and with land pooling policy schemes and their projects in upcoming Smart City, citizens are going to benefit in larger than life ways!
    2,3,4 BHK apartments in Royal Homes Delhi Heights

    ReplyDelete
  12. Great blog, keeping me from working. All the Best  
    real estate agents st louis

    ReplyDelete
  13. This article has great reference value, thank you very much for sharing, I would like to reproduced your article, so that more people would see it.
    commercial lease advice

    ReplyDelete
  14. I was searching for that post quick a long time... fortunately I found it on right time...Thanks again for sharing
    Miami Homeowner's Insurance Attorneys

    ReplyDelete
  15. You have a very good site, well constructed and very interesting i have bookmarked you, hopefully you keep posting new stuff, many thanks
    estate condo pattaya

    ReplyDelete
  16. It was another joy to see your post. It is such an important topic and ignored by so many, even professionals. I thank you to help making people more aware of possible issues. Great stuff as usual...
    Needs Analysis Consulting

    ReplyDelete
  17. I like your blog it's really cool and nice thank you for sharing this great information about the Leasing Specialist.
    Leasing Specialist

    ReplyDelete
  18. Your blog have allot of detail about the real estate agents good job.
    real estate agents

    ReplyDelete
  19. Super blog and very interesting information which I always wanted to search many article but you article is really fantastic.
    real estate agents

    ReplyDelete
  20. I search many blog about the Realtor Tom Gilliam but did not get many specific detail about the this topic but your blog have allot of information about my topic which I always searching.
    Realtor Tom Gilliam

    ReplyDelete
  21. Most valuable and fantastic blog I really appreciate your work which you have done about the Realtor Oakland County,many thanks and keep it up.
    Realtor Oakland County

    ReplyDelete
  22. Really you blog have very interesting and very valuable information about the Dynasty Real Estate it's good work.
    Dynasty Real Estate

    ReplyDelete
  23. I really appreciate your work and very amazing and important information about the real estate broker which have share in this blog.
    real estate broker

    ReplyDelete
  24. Super blog and very interesting information which I always wanted to search many article but you article is really fantastic.
    property for sale in Playa Hermosa

    ReplyDelete
  25. I search many blog about the Costa Rica but did not get many specific detail about the this topic but your blog have allot of information about my topic which I always searching.
    Costa Rica

    ReplyDelete
  26. Nice work and great style of presenting information about the Dynasty Real Estate it's good work.
    Dynasty Real Estate

    ReplyDelete
  27. I really love it and amazing information about the real estate broker it's really good and great information well done.
    real estate broker

    ReplyDelete
  28. Nice work and great style of presenting information about the Tenants it's good work.
    Tenants

    ReplyDelete
  29. I really loved reading your thoughts, obviously you know what are you talking about! Your site is so easy to use too, I’ve bookmark it in my folder
    Real Estate Appraiser California

    ReplyDelete
  30. Your post is awesome. You have shared very valuable information to us. Thank you so much for sharing this.
    casa Florida

    ReplyDelete
  31. Preface: I am not a lawyer, and if you want or need legal advice – pay for it. As is with most people, I am sure you would just love to sit back and spend the evening reading about the … Continued
    Investing in single family homes

    ReplyDelete
  32. Excielent work and i appreciate your information about the real estate.
    it's good work.


    new homes reno nv

    ReplyDelete
  33. Thanks for sharing this amazing blog and the details about real estate really awesome.
    Good work.



    Dynasty Real Estate

    ReplyDelete
  34. Very exclusive blog about Real Estate Agents .Quite interesting and nice topic chosen for the post Nice Post keep it up.



    earning 100% commission

    ReplyDelete
  35. Nice and useful information about home builders. I really liked it.
    Good work.


    new home builders colorado

    ReplyDelete
  36. Interesting and valuable information which have share here well done.


    garage sales

    ReplyDelete
  37. Thanks for the information and links you shared this is so should be a useful and quite informative! 


    sell house auction

    ReplyDelete