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A smart city is an urban region that is highly advanced in terms of overall infrastructure, sustainable real estate, communications and market viability. It is a city where information technology is the principal infrastructure and the basis for providing essential services to residents. There are many technological platforms involved, including but not limited to automated sensor networks and data centres.

Smart cities are equipped with adequate water supply, assured electricity supply, effective sanitation, including solid waste management, efficient urban mobility and public transport, affordable housing, especially for the poor, robust IT connectivity and digitalization, e-governance and citizen participation, sustainable environment, safety and security of citizens, and health and education. Of the 98 cities and towns in India that five years down will graduate into smart cities, 24 are capital cities, another 24 are business and industrial centres, 18 are culture and tourism influenced areas, five are port cities and three are education and health care hubs.

Elaborating on the advantages of Smart City Mission, Union Parliamentary Affairs and Urban Development Minister M Venkaiah Naidu says: “Building a smart city is not a destination but a series of small steps in that direction. The country has taken one such step by embarking on this mission. This will lead to integrated urban planning by addressing the issue of infrastructure, land use planning, transport, urban design and architecture in a holistic manner unlike in the past.”

However, in India’s case, much more than small steps may be required to drive the smart cities mission.

According to a report released by consulting firm Deloitte, over $ 150 billion needs to be invested in the development of smart cities in India over the next few years with the private sector being a significant contributor. Nearly $ 120 billion needs to come from the private sector.

“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," explains Deloitte India Senior Director P N Sudarshan.

Deloitte expects that despite existing challenges, service providers will increase investments in the development of smart city solutions. Major service providers will also continue to invest heavily in infrastructure solutions relevant for smart cities (for instance, Wi-Fi, fibre networks, and backhaul networks). 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," Sudarshan said.

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