From the very beginning of his election campaign, Prime Minister Narendra Modi has spoken about building 100 smart cities in India. The promise has always been part of the great Modi vision to make this India’s century, alongside bullet trains, linked rivers and bringing back black money.
This development of smart cities is set to drive new opportunities and hence create more chances for profitability for the channel community of the country.
The Union Cabinet has finally cleared an approval for Rs 48,000 crore to be allocated to the Smart Cities Mission, with Rs 100 crore to be given to each city per year for the next five years. That represents a huge investment in urban renewal overall, although a relatively small amount per city, making it clear that the government still expects most of the real financial support for smart cities to come from private sources. Reports suggest the government plans to begin with shortlisting 20 cities.
What are smart cities?
There’s no simple definition for smart cities. The term encompasses a vision of an urban space that is ecologically friendly, technologically integrated and meticulously planned, with a particular reliance on the use of information technology to improve efficiency. In most parts of the world, the idea begins with using digital technology to make a city more efficient and to improve wellbeing.
The Modi government’s idea is a little different. The government’s reference note for Members of Parliament on the issue actually offers a fairly simple definition: “Smart Cities are those that are able to attract investments.” Everything else, such as good infrastructure and simple processes that make it easy to start and run businesses, follow from this.
But the government isn’t going to be building entirely new cities with Rs 100 crore each. Instead, the money will mostly be spent on upgrading existing facilities, since the very selection process requires current cities to prove that they are eligible. States could potentially suggest areas that are going to be built up as options for the smart city mission – Andhra Pradesh’s new capital for example – but most will come from existing cities.
This will open up huge opportunities for system integrators and solutions providers as well as local channel partners who can do the IT and communications fulfillment for these cities in India.
Dinesh Shyam Sukha
Editor