The Indian government has announced the first 20 cities that will be turned into smart cities with a US$7.5 billion investment, part of its larger plan to build 100 smart cities in the country by 2022. The first list of cities was finalized after considering various factors including feasibility and cost-effectiven
The Indian government has announced the first 20 cities that will be turned into smart cities with a US$7.5 billion investment, part of its larger plan to build 100 smart cities in the country by 2022.
The first list of cities was finalized after considering various factors including feasibility and cost-effectiveness, result orientation, citizen partnership strategic plan, vision and goals, and certain key performance indicators.
According to the government's own definition, the plan to make smart cities is a series of small steps. Several of these cities lack solid basic infrastructure that can support economic development. Key aspects of the current initiative include assured water and power supply, better waste management and sanitation systems, public transportation, IT connectivity and e-governance.
Forty more cities are expected to follow suit in the coming years.
Meanwhile, research firm Deloitte has said the government's plan to build 100 smart cities will require an investment of over $150 billion over the next few years. Majority of this, nearly $120 billion, is expected to come from the private sector.
The year 2016 will see service providers and over-the-top content providers making massive investments in Wi-Fi connectivity, which would become the core of smart city facilities, Deloitte noted.
“As smart solutions are heavily dependent on ICT, service providers will play a significant role in smart cities. In 2016, service providers will participate in (and lead in many cases) consortiums for responding to RFPs for smart/ digital solutions for various city and state governments,” said PN Sudarshan, Senior Director at Deloitte India, according to media reports.
"Over the next 10-15 years, these cities will emerge as key technology, economic, and social hubs for the country. We believe that service providers that expect to be serious players in smart cities will take a center-forward position in leading consortiums in the development of smart cities," he added.
India's ambitious plans towards smart cities began two years ago when the current Prime Minister Narendra Modi came to power. Although hailed as a landmark shift in the government's approach towards development, much doubt remained on how practical the idea was, especially since India had a record of failing to implement plans.
According to the local daily Economic Times, Sudarshan acknowledged the concerns, especially at the implementation level.
"Even as funding for these smart cities is an area of concern, the major challenges remain with respect to the development of smart cities project management, government decision making and policy and regulatory framework," Sudarshan said.
Most global security companies are keeping a close watch on the developments in the subcontinent, as plans of smart and safe cities inevitably increase market demand.