SlideShare ist ein Scribd-Unternehmen logo
1 von 52
Downloaden Sie, um offline zu lesen
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
A Report on

                           Intelligent Urbanization
                                 Roadmap for India




                                       Prepared by



                                    In Association with




Sample chapter 01.indd 1                                  5/4/2010 4:31:12 AM
The Report has been prepared by Booz & Company Inc for the Confederation of Indian
      Industry (CII)

      © Confederation of Indian Industry (CII), 2010

      Disclaimer and Confidentialities

      All rights reserved. No part of this publication may be reproduced, stored in a retrieval
      system, or transmitted, in any form or by any means electronic, mechanical, photocopying,
      recording or otherwise, without the prior written permission from Confederation of Indian
      Industry (CII).

      While every care has been taken in data collection, analyses and compilation of this
      Report, CII doesn’t accept any claim for compensation if any entry is wrong, abbreviated,
      cancelled, omitted or inserted incorrectly either as to the wording, space or position in
      the Report. ‘A Report on Intelligent Urbanization: Roadmap for India’ is an attempt to
      create national and business awareness on some of the ways in which technology may to
      applied to addressing the challenges of rapid urbanization and the existing urban services
      deficit in India.




      Published by Confederation of Indian Industry (CII)
      The Mantosh Sondhi Centre; 23, Institutional Area, Lodi Road, New Delhi-110003 (INDIA)
      Tel: +91-11-24629994-7, Fax: +91-11-24626149
      Email: ciico@cii.in; Web: http://www.cii.in




      ii                                                                                           A Report on Intelligent Urbanization




Sample chapter 01.indd 2                                                                                                                  5/4/2010 4:31:12 AM
FOREWORD                               Urbanization comes with proven benefits of economic growth and development.
                                                                  Cities are centres of innovation in terms of ideas, knowledge, and their commer-
                                                                  cialization. Consequently, cities serve as magnets for talent and human capital
                                                                  seeking basic economic sustenance and fulfilment of dreams.

                                                                  However, urbanization also comes with its social and environmental challenges.
                                                                  Cities are characterized by strained infrastructure which manifests itself in terms
                                                                  of power cuts and water shortages, high cost of living, and unaffordable real estate
                                                                  resulting in urban sprawl and slums, high volume of traffic resulting in pollution
                                                                  and delays.

                                                                  India is at the cusp of a wave of urbanization. The sheer pace and scale of urban-
                                                                  ization expected in the foreseeable future is unprecedented and will bring India to
                                                                  the tipping point where majority of its population will reside in urban areas. This
                                                                  presents both a challenge and an opportunity.

                                                                  The challenge lies in our ability to cope. Our cities are already strained to meet the
                                                                  demands of their residents. Incremental demands on our existing cities are likely
                                                                  to degrade quality of life even further. Significant investments will be required to
                                                                  fulfil basic demands. Even if, for a moment we ignore financial constraints, the
                                                                  environmental impact of doing so is likely to be significant.

                                                                  However, if done right, India can walk the path of intelligent urbanization that not
                                                                  only serves as a driver for growth but also is socially inclusive and environmen-
                                                                  tally sustainable. For this to happen, India needs to base its tomorrow on fresh
                                                                  thinking and original ideas provoked within a local context. The unprecedented
                                                                  and unmatched urban growth that we are experiencing today demands a radical
                                                                  and proactive response. This will necessitate a wide range of policies and practices
                                                                  to be conceptualized around new ‘socially inclusive’ and ‘environment-friendly’
                                                                  paradigms.

                                                                  Technology has a role to play and the global community is waking up to it. CII in
                                                                  collaboration with Cisco and Booz & Company as knowledge partners presents
                                                                  a point of view on the integral role of technology in meeting India’s urbanization
                                                                  goals. The report extensively covers issues pertaining to urbanization and sug-
                                                                  gests a way forward with specific recommendations on the use of technology for
                                                                  inclusive and sustainable communities. I thank Wim Elfrink, Chief Globalisation
                                                                  Officer, CISCO Inc for leading CII in this important area of work and sincerely
                                                                  believe that this report would help and guide all stakeholders in making urbaniza-
                                                                  tion more inclusive and sustainable.

                                                                  Chandrajit Banerjee
                                                                  Director General
                                                                  Confederation of Indian Industry (CII)




                           A Report on Intelligent Urbanization                                                                                        iii




Sample chapter 01.indd 3                                                                                                                      5/4/2010 4:31:12 AM
Cii Booz Report On Intelligent Urbanization, India 2010
PREFACE                                The year 2010 marks a defining moment in human history when, for the first time
                                                                  ever, more of mankind is urban than rural. In India, the urbanization process is
                                                                  marching at an unprecedented pace creating a unique set of opportunities and
                                                                  challenges that calls for a concerted societal response. Today alone, approximately
                                                                       thousand Indians will migrate from India’s villages to its cities. As is true of
                                                                  most of India’s opportunities and challenges it is not just the pace but the sheer
                                                                  scale at which urbanization is manifesting itself that is staggering. It is encourag-
                                                                  ing to note that there is an increasing acceptance and understanding of the many
                                                                  ramifications of urbanization in India and the urgency of solutions entailed.

                                                                  India is probably the only country which needs to not only revitalize some of the
                                                                  densest urban agglomerations in the world but also ensure the delivery of basic
                                                                  services to the lesser privileged in an efficient manner during this urban transfor-
                                                                  mation. The opportunities and challenges are unique to India and therefore the
                                                                  solutions must be transformational, not incremental.

                                                                  Our solutions must embrace and address the imperatives of social equity and in-
                                                                  clusive growth in a sustainable fashion. Our response needs to be well balanced.
                                                                  The country requires a massive investment of over a trillion dollars from the gov-
                                                                  ernment and corporate sector. There is great potential for technology to be the en-
                                                                  gine that ensures the optimal use of these investments and there is an urgent need
                                                                  for smart government regulations and strategic public–private partnerships.

                                                                  Most importantly, our approach should be based on sustainability— social,
                                                                  economic and environmental. We call this approach, Intelligent Urbanization—
                                                                  enhancing the quality of life of citizens and ensuring social inclusion, boosting
                                                                  economic growth and decreasing environmental impact.

                                                                  During the course of developing this report, our colleagues at Booz & Company
                                                                  have not only attempted to capture the unique features of Indian urbanization, but
                                                                  also worked on a recommendation of specific solutions in the Indian context while
                                                                  highlighting some of the success stories.

                                                                  We have already made a beginning at trying to embrace these opportunities and
                                                                  challenges. This is our chance to get this right by making our solutions scalable,
                                                                  replicable, and sustainable. On behalf of the CII Steering Committee on Intelligent
                                                                  Urbanization, it is our hope that this report will serve to encourage you to better
                                                                  understand not just the benefits of Intelligent Urbanization in India, but also its
                                                                  applicability and execution requirements so that we can together make this hap-
                                                                  pen.

                                                                  Wim Elfrink
                                                                  Chairman, CII Steering Committee on Intelligent Urbanization
                                                                  Chief Globalisation Officer, Cisco and EVP, Cisco Services




                           A Report on Intelligent Urbanization                                                                                       v




Sample chapter 01.indd 5                                                                                                                     5/4/2010 4:31:13 AM
Sample chapter 01.indd 6   5/4/2010 4:31:13 AM
EXECUTIVE                                                  India’s Urbanization Challenge
                                                                                      This is the urban century— more peo-
                                                                                                                                                 • High density: Most of our cities are
                                                                                                                                                   extremely crowded—5 of the 20
                           SUMMARY                                                    ple are living in urban areas than rural                     most densely populated cities glob-
                                                                                      for the first time in recorded history in                     ally are Indian.
                                                                                      2010. Urban areas are the engines of
                                                                                      economic growth and centres of culture,                    • Predominantly brownfield: The
                                                                                      entertainment, innovation, education,                        growth of our cities is largely or-
                                                                                      knowledge, and political happenings.                         ganic in the sense that existing
                                                                                                                                                   urban centres are expanding and
                                                                                      Along with the world, India has also                         exploding economically, geographi-
                                                                                      been experiencing rapid urbaniza-                            cally and demographically rather
                                                                                      tion marked largely by a bottom-up,                          than new planned cities emerging
                                                                                      self-driven approach. This bottom-up                         from scratch.
                                                                                      urbanization model in India has some
                                                                                      unique characteristics (Exhibit E.1):                      While urbanization has fueled eco-
                                                                                                                                                 nomic growth in our cities, it has also
                                                                                      • Unprecedented scale: India is a                          resulted in a huge strain on existing
                                                                                        country of daunting numbers; it is                       physical infrastructure. Overcrowding,
                                                                                        estimated that nearly 140 million                        rampant growth of slums, disparities in
                                                                                        people will move to our cities by                        living conditions and inequity in access
                                                                                        2020 and 700 million by 2050. Not                        to services are endemic in India. In most
                                                                                        only that, each state has urbanized                      cities the critical infrastructure is now
                                                                                        in its own way, resulting in the co-                     woefully inadequate, technologically
                                                                                        existence of multiple urbanization                       outdated, increasingly fragile, and inca-
                                                                                        models. West Bengal has a single                         pable of meeting even the current needs
                                                                                        large urban core similar to South                        of all its residents. If India is to improve
                                                                                        Korea or Thailand, whereas Kerala                        the quality of urban life, we have to
                                                                                        and Gujarat have small dispersed                         significantly improve and enhance our
                                                                                        multiple urban growth areas similar                      existing cities, and the systems which
                                                                                        to that of Germany.                                      govern and administer them.




                           Exhibit E.1
                           Challenges of Indian Urbanization




                                              Largest urban movement in the                          Mumbai and Kolkata are the                             ~ 60% of urban growth through
                                              world, matched only by China                           world’s most densely populated                         natural population increase
                                              >700M new urban residents by                           cities (~10X New York)                                 Unplanned growth
                                              2050                                                   5 of the 20 most densely
                                                                                                     populated cities in the world                          ~ 5-10 planned Greenfield
                                              Multiple models of urbanization                                                                               projects
                                                                                                     are Indian




                                                                Limited transparency                                   Municipal expenditure only 0.5%
                                                                Fragmented accountability                              of India’s GDP

                                                                Incongruent city divisions (e.g.                       Narrow revenue base
                                                                Bangalore has 88 wards for                             Inadequate capabilities
                                                                policing, 39 for electricity etc.)
                                                                ‘Leakage’of resources




                           Source: Booz & Company




                           A Report on Intelligent Urbanization                                                                                                                                 vii




Sample chapter 01.indd 7                                                                                                                                                                5/4/2010 4:31:14 AM
Tackling the Challenge                       health, education etc. We estimate that      Furthermore, it is evident that the sheer
      Getting urbanization right requires that     meeting these basic requirements will        magnitude of the challenge requires so-
      we address some core execution chal-         require in excess of USD 1 trillion of       lutions that are more efficient, cheaper,
      lenges. There is severe shortfall in gov-    public investment over the next decade.      and holistic. Technology has proven to
      ernance capability and resources at our      In contrast, JNNURM—laudable for             be the key—and arguably the only—
      third tier of government— the very same      being independent India’s flagship ur-        enabler of sustainable outcomes (Ex-
      Urban Local Bodies (ULBs), which need        ban renewal programme—represents a           hibit E.3 on page ix).
      to lead this transformation. Further,        corpus of USD 25 billion.
      the process of revitalizing our existing                                                  Both in India and abroad, there are
      thickly-populated cities must be carried                                                  many examples—along the multiple
      through without interrupting ongoing         SuBAH Framework for Sustainable              dimensions of demand—of technol-
      services or disrupting lives of their many   Urbanization                                 ogy being applied to provide socially
      residents. Finally, cumbersome over-         However, merely investing in enhanc-         equitable, economically viable and
      heads in governance arise from multiple      ing infrastructure is not sufficient.         environmentally sustainable solutions.
      city departments with unclear decision       Projects that focus primarily on ex-         Governments are utilizing technology
      rights and accountability. Paucity of        panding capacity are not necessarily         to enhance the competitiveness of exist-
      funds is a major obstacle, since current     most effective in serving community          ing cities, and investing in the creation
      revenue sources are not sufficient.           needs, and neither are they sustainable      of new ‘Connected Cities’. South Korea
                                                   in the long run. For instance, building      is building a new city leveraging tech-
      Encouragingly, several initiatives have      new roads to accommodate increasing          nology to improve the quality of life of
      been taken by the government to fur-         traffic is neither a socially equitable       its residents. Masdar in the UAE has
      ther the cause of urban India. The 74th      nor an environmentally sustainable           been planned as the world’s first zero-
      Constitutional Amendment Act (CAA)           solution. More roads have in the past        waste settlement. New York has lever-
      was one such landmark initiative intro-      simply resulted in an increase in the        aged technology to tackle its security
      duced in 1992. More recently, under          volume of traffic, increasing the mag-        scenario, while Seoul and Singapore
      the JNNURM, an investment of INR             nitude of the same problem and wors-         have implemented smart transporta-
      100,000 crore has been envisaged in          ening pollution levels. A more long          tion solutions which discourage use of
      urban infrastructure.                        term solution may be to implement an         personal transport and offer good pub-
                                                   intelligent multi-modal transportation       lic options.
      The demand for urban services in the         network, with participation from pub-
      oncoming decades will continue to            lic as well as private entities, to arrive   Green shoots are also visible in India:
      grow exponentially. Our cities need to       at a solution which meets the param-
      make substantial investments in physi-       eters of social equity, economic viabil-     • Leveraging a smart teacher alloca-
      cal infrastructure first and foremost to      ity and environmental sustainability.          tion and monitoring system in Del-
      meet the basic needs of the citizenry.       Therefore, for urbanization to be truly        hi’s schools has contributed to the
      This infrastructure deficit is appar-         sustainable, India needs to adopt the          increase in student pass percentage
      ent across all aspects of urban services     Framework for Sustainable Urbaniza-            to 84 per cent in 2008, from 48 per
      —be it housing, power, water, security,      tion (Exhibit E.2).                            cent in 2004.




      Exhibit E.2
      SuBAH Framework for Sustainable Urbanization




      Source: Booz & Company




      viii                                                                                                 A Report on Intelligent Urbanization




Sample chapter 01.indd 8                                                                                                                          5/4/2010 4:31:14 AM
Exhibit E.3
                           Technology Solutions




                                ‘Smart metering’ systems                                  Remote systems for diagnostics and treatment           Intelligent transport systems
                                – Real-time usage metering, saving                         – Enhance patient experience and penetration          – Direct traffic flow based on real-time information
                                  ~10-15% energy                                             of direct care
                                                                                           – Improve emergency responses                         Automatic systems for reducing congestion
                                ‘Smart distribution’ systems
                                                                                                                                                 – Dynamic demand handling
                                 – Intelligent networked transmission/distribution                                                               – Systems like car sharing, multi-modal transport
                                 – Real-time network condition monitoring                                                                          scheduling etc.




                                Systems for interactive two-way content delivery          Intelligent real-estate solutions that manage         Intelligent systems
                                to students and teachers                                  building energy efficiency, security, utility          – City-wide monitoring, sensor tracking, alerting,
                                – Monitoring systems                                      supply, etc.                                             controls
                                – Remote access                                           – Reduce total cost of ownership over building        Dynamic resource management systems
                                – Access to quality content                                 life-cycle                                           – Quick emergency response
                                                                                          – Provide environmentally sustainable properties




                           Source: Booz & Company




                           • Delhi has announced the introduc-                       Given the unique characteristics of                     To make it happen…
                             tion of smart grid solutions to im-                     Indian urbanization, a top-down ap-                     In order to make Intelligent Urban-
                             prove the quality and reliability of                    proach will not work. Each urban area                   ization a nation-wide phenomenon
                             service while reducing transmission                     will have to pick the technologies and                  in India, there is an urgent need to
                             and commercial power losses.                            solutions that best suit their needs, and               strengthen our urban basics i.e., gover-
                                                                                     have the ability to implement them.                     nance and financing, while enhancing
                           • The Ministry of Health, Centre for                      Successful ‘Intelligent Urbanization’                   capabilities, and embedding technology
                             Disease Control (CDC) and UNI-                          thus requires many fathers.                             (Exhibit E.4).
                             CEF launched a pilot programme
                             where they used GIS mapping to
                             support expansion of Patna’s vacci-
                             nation programme. ‘Aarogya Jaal’, a
                             tele-healthcare facility, was launched                  Exhibit E.4
                             in Rui, a taluka hospital in Baramati,                  Recommendations for Change
                             Pune District, Maharashtra in 2006.

                           • Ahmedabad Municipal Corporation
                             and Gujarat Urban Development
                             Corporation have developed a Bus
                             Rapid Transport System (BRTS) to
                             provide reliable and secure public
                             transport with the primary objective
                             of reducing travel time.



                           Going forward, the challenge is to scale
                           up such solutions, and make our over-
                           all urbanization process intelligent.
                           Intelligent urbanization is an Indian
                           imperative.                                               Source: Booz & Company




                           A Report on Intelligent Urbanization                                                                                                                                       ix




Sample chapter 01.indd 9                                                                                                                                                                5/4/2010 4:31:14 AM
Strengthening Basics                         initiatives in order to ensure sustain-
                            • Governance: Through constitutional         ability
                               amendments and increased power to
                               ULBs                                    • Mandating SLAs: Leverage technol-
                                                                         ogy to meet Government Citizen
                            • Financing : Measures to ensure fi-          SLAs and introduce performance
                              nancial independence and viability         scorecards
                              of ULBs
                                                                       • Broadband and Connectivity: En-
                            Enhancing Execution Capabilities             courage networking amongst local
                            • Building personnel capabilities: In-       governments and building of data
                              stitute state level municipal cadre;       management capabilities
                              appoint city CIO and institute sys-
                              tems for capability building and skill   In conclusion
                              up-gradation                             Given the current scenario and huge
                                                                       opportunities in the near future, it is
                            • Broadening resources: Explore av-        critical for India to act immediately. To
                              enues to minimize strain on existing     attain the ideal of inclusive growth, it is
                              municipal resources                      important that urbanization be socially
                                                                       equitable, economically viable and en-
                            • Encouraging PPPs: Introduce initia-      vironmentally sustainable. Different
                              tives to promote PPPs in develop-        examples from across the world have
                              ment of urban infrastructure             proved that technology is a key enabler
                                                                       to help achieve these goals at the lowest
                            Embedding Technology                       cost and in the most efficient manner. It
                            • SuBAH Framework: Aim for manda-          is now for India to make this happen,
                              tory adoption of SuBAH framework         and this report attempts to lay out a
                              while visualizing and executing new      roadmap to do so.




      x                                                                           A Report on Intelligent Urbanization




Sample chapter 01.indd 10                                                                                                5/4/2010 4:31:14 AM
TABLE OF                               1. The Urban Century                                                 1
                                                                   2. The State of Indian Cities                                        3
                            CONTENTS                               3. Policy Initiatives and Impact                                     5
                                                                   4. Urbanization Challenges in India                                  7
                                                                         4.1. Structural challenges to urbanization in India            7
                                                                         4.2. Execution challenges to urbanization in India           10
                                                                   5. Dimensions of Urban Demand                                      12
                                                                   6. Framework for Sustainable Urbanization                          15
                                                                   7. Building the Future through Intelligent Urbanization:
                                                                      Better, Cheaper, and Faster                                     16
                                                                         7.1. Energy/ Utilities/ Water                                18
                                                                         7.2. Healthcare                                              19
                                                                         7.3. Transport                                               20
                                                                         7.4. Education                                               23
                                                                         7.5. Housing                                                 23
                                                                         7.6. Security                                                25
                                                                   8. The Roadmap                                                     26
                                                                         8.1. Strengthening the Basics                                26
                                                                         8.2. Enhancing Execution Capabilities                        28
                                                                         8.3. Embedding Technology                                    32
                                                                      Endnotes                                                        34




                            A Report on Intelligent Urbanization                                                                        xi




Sample chapter 01.indd 11                                                                                                      5/4/2010 4:31:14 AM
Sample chapter 01.indd 12   5/4/2010 4:31:14 AM
1                                                            Ban Ki-moon, the Secretary General of
                                                                                        the United Nations, recently remarked
                                                                                                                                                     transformative processes of human
                                                                                                                                                     civilization in terms of social and eco-
                                                                                        that we are living in the ‘urban centu-                      nomic parameters and reference points.
                                                                                        ry’. For the first time in recorded his-                      Cities have changed the development
                           THE URBAN                                                    tory, more people are living in urban                        paradigms of entire nations and have
                           CENTURY                                                      areas than in rural. The urbanization                        laid the foundation for modern econ-
                                                                                        trend has accelerated in the last cen-                       omies. They are the engines of eco-
                                                                                        tury—whereas in 1950 only about 30                           nomic growth and centres of culture,
                                                                                        per cent of the world population lived                       entertainment, innovation, education,
                                                                                        in cities, today the figure stands at just                    knowledge, and political power. There
                                                                                        over 50 per cent. By 2030, UN forecasts                      cannot be high economic growth with-
                                                                                        estimate that more than 70 per cent of                       out a high degree of urbanization. There
                                                                                        the world population will be urbanized                       is a clear positive correlation between
                                                                                        (Exhibit 1.1).1                                              the GDP of a country and its degree of
                                                                                                                                                     urbanization. While not all urbanized
                                                                                        Urbanization, defined as a spatial con-                       economies are developed, there is not
                                                                                        centration of people and economic                            one developed country that is not ur-
                                                                                        activity, represents one of the most                         banized. Statistical evidence unambigu-
                                                                                                                                                                tatistical




                           Exhibit 1.1
                           Urbanization and Economic Growth




                                                                                                                                                                          DISCUSSION

                                                                                                                                                                 Urbanization is strongly correlated to
                                                                                                                                                                   prosperity
                                                                                                                                                                     All high-income countries are
                                                                                                                                                                       70-80% urbanized
                                                                                                                                                                 Tokyo/ NY are as big as India in
                                                                                                                                                                   GDP terms; cities are able to create
                                                                                                                                                                   and sustain above-trend economic
                                                                                                                                                                   growth
                                                                                                                                                                 Indian policy has been largely geared
                                                                                                                                                                   to dispersal, and ‘de-congestion’ of
                                                                                                                                                                   the major economic centres




                           Source: World Bank; UN-Habitat Report on ëState of the worldís cities; UNFPA; Ni Pengfei, Chinese Academy of Social Sciences




                           A Report on Intelligent Urbanization                                                                                                                                            1




Sample chapter 01.indd 1                                                                                                                                                                     5/4/2010 4:31:14 AM
ously underscores the importance of                        past, when growth was led by indus-                         cities irrespective of the countries they
      cities—GDPs of mega cities such as To-
              GDPs                                               trial enterprises and the manufacturing                     are geographically situated in. Thus the
      kyo and New York are similar to that                       sector, there was limited flexibility in                     concept of urban competitiveness is
      of India as a whole!                                       the choice of physical locations of these                   rapidly gaining credence where cities,
                                                                 enterprises. Today, in the context of                       rather than countries, compete for re-
      Not only do cities catalyse growth, they                   the modern service-based industry in a                      sources and investments (Exhibit 1.2).
      also nurture creativity and talent as they                 fully networked world, globalization is
      offer space for interaction and engage-                    changing the very benchmarks of per-                        Within a country, the competitiveness
      ment for gifted individuals with drive                     formance, growth and competitiveness                        of individual cities is determined by fac-
      and aspiration. It has been argued that                    in urban areas. Ease of integration with                    tors such as quality of its infrastructure,
      the spatial proximity allows intellectual                  the world economy is a key determi-                         ability to attract talent, medical facili-
      spill-overs and free exchange of innova-                   nant of sustainable economic activity.                      ties and quality and cost of housing—
      tive ideas, eventually honing skills and                                                                               these are becoming increasingly critical
      increasing productivity of the city and                    Globalization has released the power of                     to global investment decisions. In India,
      its people2. The urban environment can                     markets, standardized products, proce-                      the competition between Hyderabad
      also reveal and facilitate unexpected                      dures, quality parameters and regula-                       and Bangalore for incremental IT in-
      synergies between seemingly unrelated                      tions. This, in conjunction with the                        vestment and Gujarat’s plan to develop
      ideas that may provide important for-                      growth in service industries, has inten-                    GIFTa to challenge the dominance of
      ward leaps in knowledge.                                   sified competition across cities for at-                     Mumbai in financial services indicate
                                                                 tracting economic activity. Investment                      this trend. Cities in the future will vie
      Growth triggers and centres of an ur-                      location decisions are now strongly                         with each other for attracting talent
      ban economy have been redefined and                         rooted in the assessment of compara-                        and investment, within the country as
      reinvented by each generation. In the                      tive advantages offered by different                        well as across national boundaries.




      Exhibit 1.2
      Global Urban Competitiveness




                                                                                                                                                  DISCUSSION

                                                                                                                                        Cities are emerging as centres of eco-
                                                                                                                                         nomic traction, at times transcending
                                                                                                                                         the national framework
                                                                                                                                        Cities compete with each other for at-
                                                                                                                                         tracting talent & investment
                                                                                                                                        No Indian city appears in the Global
                                                                                                                                         Top 100 - Mumbai ranks a poor 114,
                                                                                                                                         and Delhi ranks 213
                                                                                                                                        Top 10 cities with the fastest economic
                                                                                                                                         growth are mainly from China; no In-
                                                                                                                                         dian city makes the list




      Source: World Bank; UN-Habitat Report on State of the World’s Cities, UNFPA; Ni Pengfei—Chinese Academy of Social Sciences

      a
          Gujarat International Finance Tec-City




      2                                                                                                                                  A Report on Intelligent Urbanization




Sample chapter 01.indd 2                                                                                                                                                           5/4/2010 4:31:15 AM
2                                      India has witnessed unbridled urban-
                                                                  ization in the recent past. During the
                                                                                                                 This explosive growth of Indian cities
                                                                                                                 in the last decades of the 20th century
                                                                  last fifty years, while the population          has created a huge strain on the physi-
                                                                  of India as a whole has grown two              cal infrastructure of cities. Power short-
                           THE STATE OF                           and half times, that of urban India has        ages, mismanagement of monsoon del-
                           INDIAN CITIES                          grown nearly five times over. The urban         uges, collapse of law and order, traffic
                                                                  population rose from 210 million in            systems, pollution and congestion are
                                                                  1992 (25 per cent of total population)         a few of the innumerable instances
                                                                  to approximately 400 million in 2008           that expose the fundamental issues in
                                                                  (30 per cent of the total population).3        the delivery of services in urban India.
                                                                                                                 Overcrowding is endemic while the ur-
                                                                                                                 ban poor driven by unemployment and
                                                                  This rapid urbanization has been the
                                                                                                                 low productivity suffer the outcomes of
                                                                  marker of India’s economic progress,
                                                                                                                 inadequate housing and poor basic ser-
                                                                  where its major urban centres make
                                                                                                                 vices provisioning. Paucity of afford-
                                                                  substantial contributions to its GDP
                                                                                                                 able housing in cities has made India
                                                                  (Exhibit 2.1). Although less than 1/3 of
                                                                                                                 home to the largest urban slum popula-
                                                                  India’s people live in cities and towns,
                                                                                                                 tion in Asia. India has over 170 million
                                                                  these areas generate over 2/3 of the
                                                                                                                 slum dwellers—this number surpasses
                                                                  country’s GDP and account for 90 per
                                                                                                                 the populations of all but five countries
                                                                  cent of government revenue.4 The ser-
                                                                                                                 in the world6. In fact, each major city
                                                                  vices sector accounts for more than half       faces its own set of challenges with re-
                                                                  of India’s output, and growth of em-           gards to electricity, transportation, wa-
                                                                  ployment (main workers) in urban In-           ter systems, housing, solid waste man-
                                                                  dia during 1981–91 was recorded at 38          agement, infrastructure bottlenecks
                                                                  per cent as against 16 per cent in rural       and poor service delivery. Although
                                                                  areas and 26.1 per cent in the country         city-specific circumstances vary, over-
                                                                  as a whole.5                                   all, critical infrastructure is technologi-




                                                                  Exhibit 2.1
                                                                  Impact of Urbanization on Growth




                                                                  Source: Ministry of Urban Development (MOUD)




                           A Report on Intelligent Urbanization                                                                                            3




Sample chapter 01.indd 3                                                                                                                          5/4/2010 4:31:15 AM
cally outdated, woefully inadequate,        A comparison of quality of life indica-
                                                       increasingly fragile, and incapable of      tors of Indian cities with global coun-
                                                       meeting even the current needs of all its   terparts (Exhibit 2.2), highlights the
                                                       residents. In many cases the issue is not   poor ‘liveability’ of urban India. This
                                                       simply one of poverty or the ability of
                                                                                                   is a critical need for the Indian econ-
                                                       citizens to pay—it is as much a ques-
                                                                                                   omy for growing at a rate of over 10
                                                       tion of urban agencies, institutions and
                                                                                                   per cent in the next quinquennium, and
                                                       governments being unable to facilitate
                                                       access to these basic services for their    for improving the quality of lives of its
                                                       citizenry.                                  citizens.




      Exhibit 2.2
      Indian Cities do not Stack Up




      Source: World Bank, UN Habitat, Booz & Company




      4                                                                                                        A Report on Intelligent Urbanization




Sample chapter 01.indd 4                                                                                                                              5/4/2010 4:31:15 AM
3                                                      In the decade immediately following
                                                                                  India’s independence, economic policy
                                                                                                                                The 74th Constitutional Amend-
                                                                                                                                 ment Act (CAA): The 74th CAA of
                                                                                  focused more on rural areas. It was            1992 recognized Urban Local Bodies
                           POLICY                                                 widely held that development of ru-
                                                                                  ral India was critical to the country’s
                                                                                                                                 (ULBs) as the third tier of the gov-
                                                                                                                                 ernment, and instituted a framework
                           INITIATIVES AND                                        progress. Urban areas were treated as          to significantly enhance their vi-
                           IMPACT                                                 sectors of residual investment (Exhibit        ability as well as functional capacity.
                                                                                  3.1).                                          Amongst other things, the 74th CAA
                                                                                                                                 proposed the devolution of greater
                                                                                  However, over the last decade, urban           functional responsibilities and finan-
                                                                                  development concerns have taken cen-           cial powers to the local governments,
                                                                                  tre stage as India’s rise as a major glob-     adequate representation of weaker
                                                                                                                                 sections and women in ULBs, and
                                                                                  al economic force has revealed the true
                                                                                                                                 regular and fair elections. This was
                                                                                  potential of its cities. The need for ur-
                                                                                                                                 an important development since
                                                                                  ban reforms and policy level interven-
                                                                                                                                 in many states local bodies had be-
                                                                                  tions in order to sustain India’s impres-
                                                                                                                                 come ineffective due to failure to
                                                                                  sive economic growth rate has been felt
                                                                                                                                 hold regular elections, prolonged
                                                                                  more acutely. As a consequence, several
                                                                                                                                 supersessions as well as inadequate
                                                                                  initiatives have been taken by the Gov-        devolution of powers and functions.
                                                                                  ernment of India.                              Consequently, the ability of ULBs to
                                                                                                                                 function as vibrant democratic units
                                                                                  While many policy interventions have           of self government had been severely
                                                                                  been able to provide impetus for urban         hampered. Several state governments
                                                                                  development, the two major initiatives         have now amended their Municipal
                                                                                  that have had the most impact are:             Acts/Laws/Legislations to conform to




                           Exhibit 3.1
                           Timeline of Government Initiatives in Urbanization




                           Source: Government of India websites, Booz & Company




                           A Report on Intelligent Urbanization                                                                                                        5




Sample chapter 01.indd 5                                                                                                                                      5/4/2010 4:31:15 AM
the Constitutional Provisions. How-         for JNNURM funding, city admin-
                             ever, the economic viability of ULBs        istrations must submit a three tiered
                             remains an issue and has significantly       application with the following infor-
                             restricted the ability of the ULBs to       mation:
                             fully discharge their responsibilities.
                                                                         1. City Development Plan (CDP) de-
                            Jawaharlal Nehru National Ur-                  fining the vision for the city over
                             ban Renewal Mission (JNNURM):                  the next 20-25 years;
                             JNNURM is an INR 100,000 crore
                             (USD 26 billion) Government of In-          2. Detailed project report, enumer-
                             dia initiative launched in De cember           ating the financial requirements;
                             2005. Administered by the Ministry
                             of Urban Development and Ministry           3. Timeline for implementation of
                             of Poverty Alleviation, the Mission            the proposed initiatives.
                             is designed to support state and lo-
                             cal investment in urban develop-            As of date, nearly 500 projects have
                             ment. The central government spend          been approved and over INR 20,000
                             amounts to INR 50,000 crore (USD            crore has been committed by the
                             11 billion) with matching contribu-         Government8.
                             tion from cities/ states.7
                                                                         JNNURM is a landmark in India’s
                             The overall objective of the Mission        urbanization policy and has infused
                             is to ‘create economically produc-          a sense of urgency amongst various
                             tive, efficient, equitable and respon-       stakeholders to ensure timely results.
                             sive cities’. The aim is to encourage       As a consequence of the JNNURM,
                             reform and fast track planned devel-        the government has drafted various
                             opment of identified cities. The focus       policies to address specific areas of
                             of JNNURM is on efficiency and in-           urban development such as National
                             clusiveness in development of urban         Urban Transport Policy (2006) and
                             infrastructure and service delivery         the National Urban Sanitation Poli-
                             mechanisms, community participa-            cy (2008).
                             tion and accountability of ULBs to-
                             wards citizens. The duration of the       Though the steps taken by the govern-
                             mission is for 7 years and covers 63      ment are commendable, there are many
                             cities across the nation. To qualify      challenges that still remain.




      6                                                                          A Report on Intelligent Urbanization




Sample chapter 01.indd 6                                                                                                5/4/2010 4:31:15 AM
4                                                               Urbanization challenges in India
                                                                                           can be classified in two categories
                                                                                                                                                           Unprecedented scale
                                                                                                                                                           The scale of urbanization in India is un-
                                                                                           (Exhibit 4.1):                                                  precedented—it is estimated that nearly
                                                                                                                                                           140 million people will move to cities
                           URBANIZATION                                                     Structural challenges, driven by the                          by 2020 and 700 million by 2050 (Ex-
                           CHALLENGES IN                                                     nature of urbanization in India                               hibit 4.2). This is roughly 2.5 times the
                                                                                                                                                           current total population of USA.
                           INDIA                                                            Execution challenges, faced in imple-
                                                                                             menting initiatives to improve urban                          This scale of urbanization is expected
                                                                                             infrastructure                                                to transform existing urban agglomera-
                                                                                                                                                           tions into mega-cities. Mumbai, Delhi
                                                                                           4.1 Structural challenges to urbaniza-                          and Calcutta are slated to emerge as the
                                                                                               tion in India                                               three largest cities in the world. In this
                                                                                           Urbanization issues that India faces                            proliferation will lie, the origin of nu-
                                                                                           today have their genesis in three struc-                        merous urban communities. There were
                                                                                           tural challenges:                                               12 cities with population greater than 1
                                                                                                                                                           million in India in 1981. By 2001, that
                                                                                            Unprecedented scale                                           number had grown to 35. According to
                                                                                                                                                           some projections, there may be 68 such
                                                                                            High density cities                                           cities by 2020.9

                                                                                            Brownfield urbanization




                           Exhibit 4.1
                           Challenges of Indian Urbanization




                                                  Largest urban movement in the                               Mumbai and Kolkata are the                                 ~ 60% of urban growth through
                                                  world, matched only by China                                world’s most densely populated                             natural population increase
                                                  >700M new urban residents by                                cities (~10X New York)                                     Unplanned growth
                                                  2050                                                        5 of the 20 most densely
                                                                                                              populated cities in the world                              ~ 5-10 planned Greenfield
                                                  Multiple models of urbanization                                                                                        projects
                                                                                                              are Indian




                                                                     Limited transparency                                        Municipal expenditure only 0.5%
                                                                     Fragmented accountability                                   of India’s GDP

                                                                     Incongruent city divisions (e.g.                            Narrow revenue base
                                                                     Bangalore has 88 wards for                                  Inadequate capabilities
                                                                     policing, 39 for electricity etc.)
                                                                     ‘Leakage’of resources




                           Source: Census Bureau; Goldman Sachs Research; United Nations Department of Economic and Social Affairs; City Mayors; UNFPA State of the World Population Report 2007; Indian
                           Statistical Institute; Aijaz, Rumi (2007) ‘Challenges for urban local governments in India’. Working Paper, 19. Asia Research Centre, London School of Economics and Political Science,
                           London, UK; Booz & Company




                           A Report on Intelligent Urbanization                                                                                                                                                      7




Sample chapter 01.indd 7                                                                                                                                                                               5/4/2010 4:31:15 AM
Exhibit 4.2
      Unprecedented Scale




      Source: Census Bureau; Goldman Sachs Research; United Nations Department of Economic and Social Affairs




      Exhibit 4.3
      Multiple Models of Urbanization

                                                                                                                                                               (2001)



                                                                                                                                                         Delhi is 93% urban
                                                        330                                                                                               due to the state’s
                                                                                           65%                                                           unique composition
                                                        36
                                                  291              Centralized Model       60%
                                                                   (as in South Korea)                                                          West Bengal
                                                  25
                                                                                           55%
                                            244
                                            17                                             50%
                                                        129
                                      198         108                                      45%
                                      10
                                            85
                                                                                           40%                                                       Maharashtra
                                153
                                 9    68
                                                                                           35%
                      115                                                                                                                                Karnataka
                       6        50                                                         30%
                 82   35                                                                                                                              Gujarat
                  4                               158   165                                25%                              Jharkhand    Andhra Pradesh
          56     23                         142
                                      120                                                  20%                                            Kerala                  Tamil Nadu
          12 3                  94                                                                                Bihar
                       74                                                                                                                                Punjab
          41     55                                                                        15%                                                Haryana
                                                                                                                          Rajasthan
                                                                                           10%
          1981 1991 2001 2011 2021 2031 2041 2051                                                                Uttar Pradesh                Madhya Pradesh
                                                                 Decentralized Model        5%
            No. of cities >5M                                    (as in Germany)
            No. of cities >1M                                                               0%
                                                                                              0%      5%        10%   15%     20%       25%    30%      35%    40%      45%    50%
           No. of cities>0.5M




      Source: Census Bureau; Goldman Sachs Research; Booz & Company




      8                                                                                                                                       A Report on Intelligent Urbanization




Sample chapter 01.indd 8                                                                                                                                                             5/4/2010 4:31:16 AM
The challenge is compounded by the            High density cities                      The higher density of population results
                           fact that multiple models of urbaniza-        Not only will Indian cities be amongst   in greater pressure on infrastructure.
                           tion (with respect to urban centraliza-       the largest by 2050, they will also be   On the other hand, limited flexibility
                           tion) have evolved simultaneously in          among the most densely populated         in land use, and lack of resources will
                           India and co-exist within its geogra-         worldwide. The current population        continue to hinder infrastructure devel-
                           phy. Some states such as West Bengal          density of Mumbai is already 10 times    opment and land use for community
                           are centred on a single large tier-1 city.    that of New York (Exhibit 4.4). This     facilities. This will impact the creation
                           Others such as Gujarat or Kerala have         is likely to go up significantly as the   of sustainable living environments.
                           a relatively large number of compara-         population of Mumbai rises to over       Policies formulated and solutions con-
                           tively small cities. This makes a ‘one        20 million by 2020. This situation is    structed must acknowledge this high
                           size fits all’ solution infeasible (Exhibit    further exacerbated by low per capita    density–low per capita income scenario
                           4.3).                                         incomes.                                 in all its manifestations.



                                                                                                                  Predominantly brown-field urbaniza-
                                                                                                                  tion
                                                                                                                  In India, the most significant challenge
                                                                                                                  will be to revitalize our existing urban
                                                                                                                  centres, while strengthening capacity to
                                                                                                                  support the future growth.

                           Exhibit 4.4                                                                            Contrary to conventional belief, ur-
                           Population Density of Indian Cities - among the highest in the world                   banization in India is driven by natural
                                                                                                                  population growth as opposed to mi-
                                                                                                                  gration. Consequently, India will con-
                                                                                                                  tinue to grow its existing towns and
                                                                                                                  smaller cities in the future—cities with
                                                                                                                  histories, cultures, populations, proper-
                                                                                                                  ty rights, and deeply embedded politi-
                                                                                                                  cal interrelationships, all of which de-
                                                                                                                  mand cognizance and respect in policy
                                                                                                                  administration. A city cannot be wiped
                                                                                                                  clean and planned anew. The process
                                                                                                                  of revitalizing our existing cities must
                                                                                                                  be carried through without interrupt-
                                                                                                                  ing ongoing services or disrupting lives
                                                                                                                  of millions of people. This poses sig-
                                                                                                                  nificant implementation challenges on
                                                                                                                  ground and makes upfront consensus,
                                                                                                                  robust design and speedy execution
                                                                                                                  very important.

                                                                                                                  Our cities were not built for the in-
                                                                                                                  creases in populations that they are
                                                                                                                  experiencing or will experience in the
                                                                                                                  future; nor were they designed for this
                                                                                                                  rate of expansion.




                           Source: citymayors.com, 2007




                           A Report on Intelligent Urbanization                                                                                           9




Sample chapter 01.indd 9                                                                                                                         5/4/2010 4:31:16 AM
4.2 Execution challenges to urbaniza-      Exhibit 4.5
          tion in India                          Governance Challenges


      Efficiency in governance
      Governance suffers from policy limita-                                                     Limited policy alignment
                                                                                                                                            Lack of oversight with
                                                            Limited number                                                               respect to ULB portfolios in
                                                                                               for increasing private sector
      tions and administrative problems (Ex-             of ‘smart regulations’
                                                                                                        participation
                                                                                                                                        the case of policies/planning
                                                                                                                                            at national/state levels
      hibit 4.5).

      Policy Limitations: Most initiatives
                                                                                                                                           Existence of multiple
      are focused on building new infra-             Overburdened municipalities
                                                                                                   Poor accountability                    agencies with minimum
                                                    with poor execution capabilities
      structure—adding to scale, rather than                                                                                                   coordination

      sweating existing assets or more ef-
      ficiently using available funds for sus-    Source: Aijaz, Rumi (2007) ‘Challenges for urban local governments in India’. Working Paper, 19. Asia Research Centre,
      tainable urban development. Regula-        London School of Economics and Political Science, London, UK; Booz & Company

      tions are thus not ‘smart’, and do not
      incentivize use of technology/ IT for
      increasing efficiency.

      Municipal governance is assumed to be
      a State Function by the Indian Consti-
      tution; Entry 5 of the State List in the   However, the list is merely advisory in                       and forward linkages associated with
      Seventh Schedule of the Constitution       nature. Whether or not states devolve                         their functions.
      of India gives legislative power to the    powers, and to what extent they do so,
      State with regard to municipal laws,       is entirely a matter of state choice. What-                   Additionally, multiple structures of
      establishments, constitution, and pow-     ever powers or functions are devolved,                        service delivery exist with criss-cross-
      ers of local government. Except for        will be subject to provisions in existing                     ing administrative jurisdictions. For
      recognizing local self-government as an    enactments. As a result, the powers of                        instance, a Janaagraha study10 high-
      essential part of the system of govern-    local bodies on all matters are subsidi-                      lighted that Bangalore’s service delivery
      ment, the Constitution does not confer     ary to those of the states. Consequently,                     structure is as follows:
      independent status or powers to local      ULBs are not empowered to function as
      government bodies.                         independent arms of governance.                                Public works are carried out under
                                                                                                                 12 engineering divisions
      The 74th Constitutional Amendment          Administrative Problems: Municipali-
      Act (CAA) of 1992 seeks to provide         ties are overburdened, resulting in poor                       Garbage collection divides the city
      more power and authority to ULBs.          levels of service delivery.                                     into 278 health wards
      It is the first serious attempt to ensure
      stabilization of democratic municipal      The existence of a large number of de-                         Property taxes are collected through
      government through constitutional          partments, agencies and officers under-                          30 Assistant Range Offices
      provisions. It introduced the Twelfth      taking similar, related or over-lapping
      Schedule which lists the functions of      functions, leads to conflict in opera-                          Electricity services are structured
      ULBs, covering planning, regulation        tion. These agencies operate in overlap-                        along 39 sub-divisions reporting to
      and developmental aspects.                 ping jurisdictions and are often not in a                       10 divisions
                                                 position to fully understand backward                          Water supply is managed through 5




      10                                                                                                                       A Report on Intelligent Urbanization




Sample chapter 01.indd 10                                                                                                                                                 5/4/2010 4:31:16 AM
divisions, 17 sub-divisions and 74        Exhibit 4.6
                               service stations                          Property Tax Collection Efficiency

                                                                                                          Collection Efficiency (2005–06, Select Indian Cities)
                             Bus service is monitored through 24
                              depots

                             Law and order is dispensed via 88
                              police stations, and traffic through
                              29 of these stations

                             Slum Development is coordinated
                              through 4 sub-divisions

                            Not one of these criss-crossing admin-
                            istrative jurisdictions is aligned to a
                            political unit. A political unit has an
                            inherent accountability associated with      Source: ICRA

                            it. As a result, there is limited account-
                            ability in service delivery.



                            Resources Enhancement                        fore, the financial viability of municipal                   Resource constraints are not only finan-
                            Cities have narrow financial resource         corporations is dependent on the trans-                     cial but also capability driven. Planning
                            bases leading to monetary constraints.       fers from the State Governments.                            capabilities often do not match up to
                                                                                                                                     requirements. Consequently, city devel-
                            Share of transfers from state govern-        A city’s own revenues are mostly de-                        opment has mostly been short sighted
                            ments in the revenues of municipali-         pendent on octroi and property taxes.                       and not holistic. Capacity to execute
                            ties was 31.7 per cent on an average         Most urban districts have abolished                         has also traditionally been poor due to
                            (2001/02). Municipalities in several         octroi; property tax collections suffer                     shortage of skilled personnel. Our in-
                            states are almost entirely transfer-de-      from evasion and low levels of collec-                      terviews with Municipal Commission-
                            pendent for running local services. The      tion efficiency (Exhibit 4.6).                               ers and Mayors clearly highlighted that
                            dependence was as high as 84 per cent                                                                    the biggest limitation to project execu-
                            in case of Jammu & Kashmir, 83 per           Consequently, Indian cities are unable                      tion is unavailability of skilled person-
                            cent in case of Rajasthan and 74 per         to commit requisite financial resources                      nel. This is further exacerbated by the
                            cent in case of Uttar Pradesh. There-        for development (Exhibit 4.7).                              use of archaic tools and processes.




                                                                         Exhibit 4.7
                                                                         National Municipal Government Expenditure: Global Comparison




                                                                         Source: Goldman Sachs Research




                            A Report on Intelligent Urbanization                                                                                                            11




Sample chapter 01.indd 11                                                                                                                                           5/4/2010 4:31:16 AM
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010
Cii Booz Report On Intelligent Urbanization, India 2010

Weitere ähnliche Inhalte

Ähnlich wie Cii Booz Report On Intelligent Urbanization, India 2010

digital_blueprint-digital-4.pdf
digital_blueprint-digital-4.pdfdigital_blueprint-digital-4.pdf
digital_blueprint-digital-4.pdfajay841322
 
NUIS Final Copy .pdf
NUIS Final Copy .pdfNUIS Final Copy .pdf
NUIS Final Copy .pdfAjay Rawat
 
Smart city mission and vision
Smart city mission and visionSmart city mission and vision
Smart city mission and visionDr. Pallavi Badry
 
Viewpoints of the common villagers on Smart Village Development under Urbanis...
Viewpoints of the common villagers on Smart Village Development under Urbanis...Viewpoints of the common villagers on Smart Village Development under Urbanis...
Viewpoints of the common villagers on Smart Village Development under Urbanis...IRJET Journal
 
11. gestion de proyectos - nayoka martinez
11.  gestion de proyectos - nayoka martinez11.  gestion de proyectos - nayoka martinez
11. gestion de proyectos - nayoka martinezparquesalegres
 
Challenges opportunities and way forward in making indian cities and citizens...
Challenges opportunities and way forward in making indian cities and citizens...Challenges opportunities and way forward in making indian cities and citizens...
Challenges opportunities and way forward in making indian cities and citizens...ANIRBAN CHOUDHURY
 
The Next Age of Megacities
The Next Age of MegacitiesThe Next Age of Megacities
The Next Age of MegacitiesEricsson Slides
 
IRJET- Case Study of Smart Village and Local Village
IRJET- Case Study of Smart Village and Local VillageIRJET- Case Study of Smart Village and Local Village
IRJET- Case Study of Smart Village and Local VillageIRJET Journal
 
Creating Smarter Cities 2011 - 14 - Patrizia Lombardi - Triple Helix of Smart...
Creating Smarter Cities 2011 - 14 - Patrizia Lombardi - Triple Helix of Smart...Creating Smarter Cities 2011 - 14 - Patrizia Lombardi - Triple Helix of Smart...
Creating Smarter Cities 2011 - 14 - Patrizia Lombardi - Triple Helix of Smart...Smart Cities Project
 
Intelligent Transport Services and Systems - IBM
Intelligent Transport Services and Systems - IBMIntelligent Transport Services and Systems - IBM
Intelligent Transport Services and Systems - IBMIBMTransportation
 
Networked Society City Index Report
Networked Society City Index Report Networked Society City Index Report
Networked Society City Index Report Ericsson Slides
 
Impact Report: Public Private Partnership by Youth Bandung (Jan 2020)
Impact Report: Public Private Partnership by Youth Bandung (Jan 2020)Impact Report: Public Private Partnership by Youth Bandung (Jan 2020)
Impact Report: Public Private Partnership by Youth Bandung (Jan 2020)Good City Foundation
 

Ähnlich wie Cii Booz Report On Intelligent Urbanization, India 2010 (20)

Bbe2010 workshop-yueh-iii
Bbe2010 workshop-yueh-iiiBbe2010 workshop-yueh-iii
Bbe2010 workshop-yueh-iii
 
digital_blueprint-digital-4.pdf
digital_blueprint-digital-4.pdfdigital_blueprint-digital-4.pdf
digital_blueprint-digital-4.pdf
 
SMART CITY_DurgaPrasadMishra
SMART CITY_DurgaPrasadMishra SMART CITY_DurgaPrasadMishra
SMART CITY_DurgaPrasadMishra
 
NUIS Final Copy .pdf
NUIS Final Copy .pdfNUIS Final Copy .pdf
NUIS Final Copy .pdf
 
Smart city mission and vision
Smart city mission and visionSmart city mission and vision
Smart city mission and vision
 
Viewpoints of the common villagers on Smart Village Development under Urbanis...
Viewpoints of the common villagers on Smart Village Development under Urbanis...Viewpoints of the common villagers on Smart Village Development under Urbanis...
Viewpoints of the common villagers on Smart Village Development under Urbanis...
 
11. gestion de proyectos - nayoka martinez
11.  gestion de proyectos - nayoka martinez11.  gestion de proyectos - nayoka martinez
11. gestion de proyectos - nayoka martinez
 
ENHANCING THE QUALITY OF URBAN INFRASTRUCTURE INVESTMENTS
ENHANCING THE QUALITY OF URBAN INFRASTRUCTURE INVESTMENTSENHANCING THE QUALITY OF URBAN INFRASTRUCTURE INVESTMENTS
ENHANCING THE QUALITY OF URBAN INFRASTRUCTURE INVESTMENTS
 
APEC Infrastructure Development Working Group
APEC Infrastructure Development Working GroupAPEC Infrastructure Development Working Group
APEC Infrastructure Development Working Group
 
SMART CITIES
SMART CITIESSMART CITIES
SMART CITIES
 
IOT in SMART Cities
IOT in SMART CitiesIOT in SMART Cities
IOT in SMART Cities
 
Challenges opportunities and way forward in making indian cities and citizens...
Challenges opportunities and way forward in making indian cities and citizens...Challenges opportunities and way forward in making indian cities and citizens...
Challenges opportunities and way forward in making indian cities and citizens...
 
John Jung
John JungJohn Jung
John Jung
 
The Next Age of Megacities
The Next Age of MegacitiesThe Next Age of Megacities
The Next Age of Megacities
 
IRJET- Case Study of Smart Village and Local Village
IRJET- Case Study of Smart Village and Local VillageIRJET- Case Study of Smart Village and Local Village
IRJET- Case Study of Smart Village and Local Village
 
Creating Smarter Cities 2011 - 14 - Patrizia Lombardi - Triple Helix of Smart...
Creating Smarter Cities 2011 - 14 - Patrizia Lombardi - Triple Helix of Smart...Creating Smarter Cities 2011 - 14 - Patrizia Lombardi - Triple Helix of Smart...
Creating Smarter Cities 2011 - 14 - Patrizia Lombardi - Triple Helix of Smart...
 
Intelligent Transport Services and Systems - IBM
Intelligent Transport Services and Systems - IBMIntelligent Transport Services and Systems - IBM
Intelligent Transport Services and Systems - IBM
 
Networked Society City Index Report
Networked Society City Index Report Networked Society City Index Report
Networked Society City Index Report
 
C012322430
C012322430C012322430
C012322430
 
Impact Report: Public Private Partnership by Youth Bandung (Jan 2020)
Impact Report: Public Private Partnership by Youth Bandung (Jan 2020)Impact Report: Public Private Partnership by Youth Bandung (Jan 2020)
Impact Report: Public Private Partnership by Youth Bandung (Jan 2020)
 

Mehr von Gowri Sundaresan

Wwf Booz report on low carbon_cities
Wwf  Booz report on low carbon_citiesWwf  Booz report on low carbon_cities
Wwf Booz report on low carbon_citiesGowri Sundaresan
 
Chapter5 structuring a ppp (selecting an option)
Chapter5   structuring a ppp (selecting an option)Chapter5   structuring a ppp (selecting an option)
Chapter5 structuring a ppp (selecting an option)Gowri Sundaresan
 
Chapter4 structuring a ppp (available ppp options)
Chapter4   structuring a ppp (available ppp options)Chapter4   structuring a ppp (available ppp options)
Chapter4 structuring a ppp (available ppp options)Gowri Sundaresan
 
Chapter3 Structuring A Ppp (Sector Diagnostic & Road Map)
Chapter3   Structuring A Ppp (Sector Diagnostic & Road Map)Chapter3   Structuring A Ppp (Sector Diagnostic & Road Map)
Chapter3 Structuring A Ppp (Sector Diagnostic & Road Map)Gowri Sundaresan
 
Chapter2 recent experiences
Chapter2   recent experiencesChapter2   recent experiences
Chapter2 recent experiencesGowri Sundaresan
 
Chapter1 PPPs: An Overview
Chapter1   PPPs: An OverviewChapter1   PPPs: An Overview
Chapter1 PPPs: An OverviewGowri Sundaresan
 
Unfpa state of the world report 2007
Unfpa state of the world report 2007Unfpa state of the world report 2007
Unfpa state of the world report 2007Gowri Sundaresan
 
Wef india competitiveness report 2009
Wef india competitiveness report 2009Wef india competitiveness report 2009
Wef india competitiveness report 2009Gowri Sundaresan
 

Mehr von Gowri Sundaresan (8)

Wwf Booz report on low carbon_cities
Wwf  Booz report on low carbon_citiesWwf  Booz report on low carbon_cities
Wwf Booz report on low carbon_cities
 
Chapter5 structuring a ppp (selecting an option)
Chapter5   structuring a ppp (selecting an option)Chapter5   structuring a ppp (selecting an option)
Chapter5 structuring a ppp (selecting an option)
 
Chapter4 structuring a ppp (available ppp options)
Chapter4   structuring a ppp (available ppp options)Chapter4   structuring a ppp (available ppp options)
Chapter4 structuring a ppp (available ppp options)
 
Chapter3 Structuring A Ppp (Sector Diagnostic & Road Map)
Chapter3   Structuring A Ppp (Sector Diagnostic & Road Map)Chapter3   Structuring A Ppp (Sector Diagnostic & Road Map)
Chapter3 Structuring A Ppp (Sector Diagnostic & Road Map)
 
Chapter2 recent experiences
Chapter2   recent experiencesChapter2   recent experiences
Chapter2 recent experiences
 
Chapter1 PPPs: An Overview
Chapter1   PPPs: An OverviewChapter1   PPPs: An Overview
Chapter1 PPPs: An Overview
 
Unfpa state of the world report 2007
Unfpa state of the world report 2007Unfpa state of the world report 2007
Unfpa state of the world report 2007
 
Wef india competitiveness report 2009
Wef india competitiveness report 2009Wef india competitiveness report 2009
Wef india competitiveness report 2009
 

Kürzlich hochgeladen

UiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation DevelopersUiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation DevelopersUiPathCommunity
 
All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...
All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...
All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...Daniel Zivkovic
 
UiPath Clipboard AI: "A TIME Magazine Best Invention of 2023 Unveiled"
UiPath Clipboard AI: "A TIME Magazine Best Invention of 2023 Unveiled"UiPath Clipboard AI: "A TIME Magazine Best Invention of 2023 Unveiled"
UiPath Clipboard AI: "A TIME Magazine Best Invention of 2023 Unveiled"DianaGray10
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdfPedro Manuel
 
100+ ChatGPT Prompts for SEO Optimization
100+ ChatGPT Prompts for SEO Optimization100+ ChatGPT Prompts for SEO Optimization
100+ ChatGPT Prompts for SEO Optimizationarrow10202532yuvraj
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioChristian Posta
 
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...Will Schroeder
 
99.99% of Your Traces Are (Probably) Trash (SRECon NA 2024).pdf
99.99% of Your Traces  Are (Probably) Trash (SRECon NA 2024).pdf99.99% of Your Traces  Are (Probably) Trash (SRECon NA 2024).pdf
99.99% of Your Traces Are (Probably) Trash (SRECon NA 2024).pdfPaige Cruz
 
The Kubernetes Gateway API and its role in Cloud Native API Management
The Kubernetes Gateway API and its role in Cloud Native API ManagementThe Kubernetes Gateway API and its role in Cloud Native API Management
The Kubernetes Gateway API and its role in Cloud Native API ManagementNuwan Dias
 
Bird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemBird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemAsko Soukka
 
Valere | Digital Solutions & AI Transformation Portfolio | 2024
Valere | Digital Solutions & AI Transformation Portfolio | 2024Valere | Digital Solutions & AI Transformation Portfolio | 2024
Valere | Digital Solutions & AI Transformation Portfolio | 2024Alexander Turgeon
 
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfUiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfDianaGray10
 
OpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureOpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureEric D. Schabell
 
UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8DianaGray10
 
Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024D Cloud Solutions
 
Computer 10: Lesson 10 - Online Crimes and Hazards
Computer 10: Lesson 10 - Online Crimes and HazardsComputer 10: Lesson 10 - Online Crimes and Hazards
Computer 10: Lesson 10 - Online Crimes and HazardsSeth Reyes
 
Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Adtran
 
Empowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership BlueprintEmpowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership BlueprintMahmoud Rabie
 
Building Your Own AI Instance (TBLC AI )
Building Your Own AI Instance (TBLC AI )Building Your Own AI Instance (TBLC AI )
Building Your Own AI Instance (TBLC AI )Brian Pichman
 

Kürzlich hochgeladen (20)

UiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation DevelopersUiPath Community: AI for UiPath Automation Developers
UiPath Community: AI for UiPath Automation Developers
 
All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...
All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...
All in AI: LLM Landscape & RAG in 2024 with Mark Ryan (Google) & Jerry Liu (L...
 
UiPath Clipboard AI: "A TIME Magazine Best Invention of 2023 Unveiled"
UiPath Clipboard AI: "A TIME Magazine Best Invention of 2023 Unveiled"UiPath Clipboard AI: "A TIME Magazine Best Invention of 2023 Unveiled"
UiPath Clipboard AI: "A TIME Magazine Best Invention of 2023 Unveiled"
 
Nanopower In Semiconductor Industry.pdf
Nanopower  In Semiconductor Industry.pdfNanopower  In Semiconductor Industry.pdf
Nanopower In Semiconductor Industry.pdf
 
100+ ChatGPT Prompts for SEO Optimization
100+ ChatGPT Prompts for SEO Optimization100+ ChatGPT Prompts for SEO Optimization
100+ ChatGPT Prompts for SEO Optimization
 
Comparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and IstioComparing Sidecar-less Service Mesh from Cilium and Istio
Comparing Sidecar-less Service Mesh from Cilium and Istio
 
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
Apres-Cyber - The Data Dilemma: Bridging Offensive Operations and Machine Lea...
 
99.99% of Your Traces Are (Probably) Trash (SRECon NA 2024).pdf
99.99% of Your Traces  Are (Probably) Trash (SRECon NA 2024).pdf99.99% of Your Traces  Are (Probably) Trash (SRECon NA 2024).pdf
99.99% of Your Traces Are (Probably) Trash (SRECon NA 2024).pdf
 
The Kubernetes Gateway API and its role in Cloud Native API Management
The Kubernetes Gateway API and its role in Cloud Native API ManagementThe Kubernetes Gateway API and its role in Cloud Native API Management
The Kubernetes Gateway API and its role in Cloud Native API Management
 
20230104 - machine vision
20230104 - machine vision20230104 - machine vision
20230104 - machine vision
 
Bird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystemBird eye's view on Camunda open source ecosystem
Bird eye's view on Camunda open source ecosystem
 
Valere | Digital Solutions & AI Transformation Portfolio | 2024
Valere | Digital Solutions & AI Transformation Portfolio | 2024Valere | Digital Solutions & AI Transformation Portfolio | 2024
Valere | Digital Solutions & AI Transformation Portfolio | 2024
 
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdfUiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
UiPath Solutions Management Preview - Northern CA Chapter - March 22.pdf
 
OpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability AdventureOpenShift Commons Paris - Choose Your Own Observability Adventure
OpenShift Commons Paris - Choose Your Own Observability Adventure
 
UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8UiPath Studio Web workshop series - Day 8
UiPath Studio Web workshop series - Day 8
 
Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024Artificial Intelligence & SEO Trends for 2024
Artificial Intelligence & SEO Trends for 2024
 
Computer 10: Lesson 10 - Online Crimes and Hazards
Computer 10: Lesson 10 - Online Crimes and HazardsComputer 10: Lesson 10 - Online Crimes and Hazards
Computer 10: Lesson 10 - Online Crimes and Hazards
 
Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™Meet the new FSP 3000 M-Flex800™
Meet the new FSP 3000 M-Flex800™
 
Empowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership BlueprintEmpowering Africa's Next Generation: The AI Leadership Blueprint
Empowering Africa's Next Generation: The AI Leadership Blueprint
 
Building Your Own AI Instance (TBLC AI )
Building Your Own AI Instance (TBLC AI )Building Your Own AI Instance (TBLC AI )
Building Your Own AI Instance (TBLC AI )
 

Cii Booz Report On Intelligent Urbanization, India 2010

  • 3. A Report on Intelligent Urbanization Roadmap for India Prepared by In Association with Sample chapter 01.indd 1 5/4/2010 4:31:12 AM
  • 4. The Report has been prepared by Booz & Company Inc for the Confederation of Indian Industry (CII) © Confederation of Indian Industry (CII), 2010 Disclaimer and Confidentialities All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means electronic, mechanical, photocopying, recording or otherwise, without the prior written permission from Confederation of Indian Industry (CII). While every care has been taken in data collection, analyses and compilation of this Report, CII doesn’t accept any claim for compensation if any entry is wrong, abbreviated, cancelled, omitted or inserted incorrectly either as to the wording, space or position in the Report. ‘A Report on Intelligent Urbanization: Roadmap for India’ is an attempt to create national and business awareness on some of the ways in which technology may to applied to addressing the challenges of rapid urbanization and the existing urban services deficit in India. Published by Confederation of Indian Industry (CII) The Mantosh Sondhi Centre; 23, Institutional Area, Lodi Road, New Delhi-110003 (INDIA) Tel: +91-11-24629994-7, Fax: +91-11-24626149 Email: ciico@cii.in; Web: http://www.cii.in ii A Report on Intelligent Urbanization Sample chapter 01.indd 2 5/4/2010 4:31:12 AM
  • 5. FOREWORD Urbanization comes with proven benefits of economic growth and development. Cities are centres of innovation in terms of ideas, knowledge, and their commer- cialization. Consequently, cities serve as magnets for talent and human capital seeking basic economic sustenance and fulfilment of dreams. However, urbanization also comes with its social and environmental challenges. Cities are characterized by strained infrastructure which manifests itself in terms of power cuts and water shortages, high cost of living, and unaffordable real estate resulting in urban sprawl and slums, high volume of traffic resulting in pollution and delays. India is at the cusp of a wave of urbanization. The sheer pace and scale of urban- ization expected in the foreseeable future is unprecedented and will bring India to the tipping point where majority of its population will reside in urban areas. This presents both a challenge and an opportunity. The challenge lies in our ability to cope. Our cities are already strained to meet the demands of their residents. Incremental demands on our existing cities are likely to degrade quality of life even further. Significant investments will be required to fulfil basic demands. Even if, for a moment we ignore financial constraints, the environmental impact of doing so is likely to be significant. However, if done right, India can walk the path of intelligent urbanization that not only serves as a driver for growth but also is socially inclusive and environmen- tally sustainable. For this to happen, India needs to base its tomorrow on fresh thinking and original ideas provoked within a local context. The unprecedented and unmatched urban growth that we are experiencing today demands a radical and proactive response. This will necessitate a wide range of policies and practices to be conceptualized around new ‘socially inclusive’ and ‘environment-friendly’ paradigms. Technology has a role to play and the global community is waking up to it. CII in collaboration with Cisco and Booz & Company as knowledge partners presents a point of view on the integral role of technology in meeting India’s urbanization goals. The report extensively covers issues pertaining to urbanization and sug- gests a way forward with specific recommendations on the use of technology for inclusive and sustainable communities. I thank Wim Elfrink, Chief Globalisation Officer, CISCO Inc for leading CII in this important area of work and sincerely believe that this report would help and guide all stakeholders in making urbaniza- tion more inclusive and sustainable. Chandrajit Banerjee Director General Confederation of Indian Industry (CII) A Report on Intelligent Urbanization iii Sample chapter 01.indd 3 5/4/2010 4:31:12 AM
  • 7. PREFACE The year 2010 marks a defining moment in human history when, for the first time ever, more of mankind is urban than rural. In India, the urbanization process is marching at an unprecedented pace creating a unique set of opportunities and challenges that calls for a concerted societal response. Today alone, approximately thousand Indians will migrate from India’s villages to its cities. As is true of most of India’s opportunities and challenges it is not just the pace but the sheer scale at which urbanization is manifesting itself that is staggering. It is encourag- ing to note that there is an increasing acceptance and understanding of the many ramifications of urbanization in India and the urgency of solutions entailed. India is probably the only country which needs to not only revitalize some of the densest urban agglomerations in the world but also ensure the delivery of basic services to the lesser privileged in an efficient manner during this urban transfor- mation. The opportunities and challenges are unique to India and therefore the solutions must be transformational, not incremental. Our solutions must embrace and address the imperatives of social equity and in- clusive growth in a sustainable fashion. Our response needs to be well balanced. The country requires a massive investment of over a trillion dollars from the gov- ernment and corporate sector. There is great potential for technology to be the en- gine that ensures the optimal use of these investments and there is an urgent need for smart government regulations and strategic public–private partnerships. Most importantly, our approach should be based on sustainability— social, economic and environmental. We call this approach, Intelligent Urbanization— enhancing the quality of life of citizens and ensuring social inclusion, boosting economic growth and decreasing environmental impact. During the course of developing this report, our colleagues at Booz & Company have not only attempted to capture the unique features of Indian urbanization, but also worked on a recommendation of specific solutions in the Indian context while highlighting some of the success stories. We have already made a beginning at trying to embrace these opportunities and challenges. This is our chance to get this right by making our solutions scalable, replicable, and sustainable. On behalf of the CII Steering Committee on Intelligent Urbanization, it is our hope that this report will serve to encourage you to better understand not just the benefits of Intelligent Urbanization in India, but also its applicability and execution requirements so that we can together make this hap- pen. Wim Elfrink Chairman, CII Steering Committee on Intelligent Urbanization Chief Globalisation Officer, Cisco and EVP, Cisco Services A Report on Intelligent Urbanization v Sample chapter 01.indd 5 5/4/2010 4:31:13 AM
  • 8. Sample chapter 01.indd 6 5/4/2010 4:31:13 AM
  • 9. EXECUTIVE India’s Urbanization Challenge This is the urban century— more peo- • High density: Most of our cities are extremely crowded—5 of the 20 SUMMARY ple are living in urban areas than rural most densely populated cities glob- for the first time in recorded history in ally are Indian. 2010. Urban areas are the engines of economic growth and centres of culture, • Predominantly brownfield: The entertainment, innovation, education, growth of our cities is largely or- knowledge, and political happenings. ganic in the sense that existing urban centres are expanding and Along with the world, India has also exploding economically, geographi- been experiencing rapid urbaniza- cally and demographically rather tion marked largely by a bottom-up, than new planned cities emerging self-driven approach. This bottom-up from scratch. urbanization model in India has some unique characteristics (Exhibit E.1): While urbanization has fueled eco- nomic growth in our cities, it has also • Unprecedented scale: India is a resulted in a huge strain on existing country of daunting numbers; it is physical infrastructure. Overcrowding, estimated that nearly 140 million rampant growth of slums, disparities in people will move to our cities by living conditions and inequity in access 2020 and 700 million by 2050. Not to services are endemic in India. In most only that, each state has urbanized cities the critical infrastructure is now in its own way, resulting in the co- woefully inadequate, technologically existence of multiple urbanization outdated, increasingly fragile, and inca- models. West Bengal has a single pable of meeting even the current needs large urban core similar to South of all its residents. If India is to improve Korea or Thailand, whereas Kerala the quality of urban life, we have to and Gujarat have small dispersed significantly improve and enhance our multiple urban growth areas similar existing cities, and the systems which to that of Germany. govern and administer them. Exhibit E.1 Challenges of Indian Urbanization Largest urban movement in the Mumbai and Kolkata are the ~ 60% of urban growth through world, matched only by China world’s most densely populated natural population increase >700M new urban residents by cities (~10X New York) Unplanned growth 2050 5 of the 20 most densely populated cities in the world ~ 5-10 planned Greenfield Multiple models of urbanization projects are Indian Limited transparency Municipal expenditure only 0.5% Fragmented accountability of India’s GDP Incongruent city divisions (e.g. Narrow revenue base Bangalore has 88 wards for Inadequate capabilities policing, 39 for electricity etc.) ‘Leakage’of resources Source: Booz & Company A Report on Intelligent Urbanization vii Sample chapter 01.indd 7 5/4/2010 4:31:14 AM
  • 10. Tackling the Challenge health, education etc. We estimate that Furthermore, it is evident that the sheer Getting urbanization right requires that meeting these basic requirements will magnitude of the challenge requires so- we address some core execution chal- require in excess of USD 1 trillion of lutions that are more efficient, cheaper, lenges. There is severe shortfall in gov- public investment over the next decade. and holistic. Technology has proven to ernance capability and resources at our In contrast, JNNURM—laudable for be the key—and arguably the only— third tier of government— the very same being independent India’s flagship ur- enabler of sustainable outcomes (Ex- Urban Local Bodies (ULBs), which need ban renewal programme—represents a hibit E.3 on page ix). to lead this transformation. Further, corpus of USD 25 billion. the process of revitalizing our existing Both in India and abroad, there are thickly-populated cities must be carried many examples—along the multiple through without interrupting ongoing SuBAH Framework for Sustainable dimensions of demand—of technol- services or disrupting lives of their many Urbanization ogy being applied to provide socially residents. Finally, cumbersome over- However, merely investing in enhanc- equitable, economically viable and heads in governance arise from multiple ing infrastructure is not sufficient. environmentally sustainable solutions. city departments with unclear decision Projects that focus primarily on ex- Governments are utilizing technology rights and accountability. Paucity of panding capacity are not necessarily to enhance the competitiveness of exist- funds is a major obstacle, since current most effective in serving community ing cities, and investing in the creation revenue sources are not sufficient. needs, and neither are they sustainable of new ‘Connected Cities’. South Korea in the long run. For instance, building is building a new city leveraging tech- Encouragingly, several initiatives have new roads to accommodate increasing nology to improve the quality of life of been taken by the government to fur- traffic is neither a socially equitable its residents. Masdar in the UAE has ther the cause of urban India. The 74th nor an environmentally sustainable been planned as the world’s first zero- Constitutional Amendment Act (CAA) solution. More roads have in the past waste settlement. New York has lever- was one such landmark initiative intro- simply resulted in an increase in the aged technology to tackle its security duced in 1992. More recently, under volume of traffic, increasing the mag- scenario, while Seoul and Singapore the JNNURM, an investment of INR nitude of the same problem and wors- have implemented smart transporta- 100,000 crore has been envisaged in ening pollution levels. A more long tion solutions which discourage use of urban infrastructure. term solution may be to implement an personal transport and offer good pub- intelligent multi-modal transportation lic options. The demand for urban services in the network, with participation from pub- oncoming decades will continue to lic as well as private entities, to arrive Green shoots are also visible in India: grow exponentially. Our cities need to at a solution which meets the param- make substantial investments in physi- eters of social equity, economic viabil- • Leveraging a smart teacher alloca- cal infrastructure first and foremost to ity and environmental sustainability. tion and monitoring system in Del- meet the basic needs of the citizenry. Therefore, for urbanization to be truly hi’s schools has contributed to the This infrastructure deficit is appar- sustainable, India needs to adopt the increase in student pass percentage ent across all aspects of urban services Framework for Sustainable Urbaniza- to 84 per cent in 2008, from 48 per —be it housing, power, water, security, tion (Exhibit E.2). cent in 2004. Exhibit E.2 SuBAH Framework for Sustainable Urbanization Source: Booz & Company viii A Report on Intelligent Urbanization Sample chapter 01.indd 8 5/4/2010 4:31:14 AM
  • 11. Exhibit E.3 Technology Solutions ‘Smart metering’ systems Remote systems for diagnostics and treatment Intelligent transport systems – Real-time usage metering, saving – Enhance patient experience and penetration – Direct traffic flow based on real-time information ~10-15% energy of direct care – Improve emergency responses Automatic systems for reducing congestion ‘Smart distribution’ systems – Dynamic demand handling – Intelligent networked transmission/distribution – Systems like car sharing, multi-modal transport – Real-time network condition monitoring scheduling etc. Systems for interactive two-way content delivery Intelligent real-estate solutions that manage Intelligent systems to students and teachers building energy efficiency, security, utility – City-wide monitoring, sensor tracking, alerting, – Monitoring systems supply, etc. controls – Remote access – Reduce total cost of ownership over building Dynamic resource management systems – Access to quality content life-cycle – Quick emergency response – Provide environmentally sustainable properties Source: Booz & Company • Delhi has announced the introduc- Given the unique characteristics of To make it happen… tion of smart grid solutions to im- Indian urbanization, a top-down ap- In order to make Intelligent Urban- prove the quality and reliability of proach will not work. Each urban area ization a nation-wide phenomenon service while reducing transmission will have to pick the technologies and in India, there is an urgent need to and commercial power losses. solutions that best suit their needs, and strengthen our urban basics i.e., gover- have the ability to implement them. nance and financing, while enhancing • The Ministry of Health, Centre for Successful ‘Intelligent Urbanization’ capabilities, and embedding technology Disease Control (CDC) and UNI- thus requires many fathers. (Exhibit E.4). CEF launched a pilot programme where they used GIS mapping to support expansion of Patna’s vacci- nation programme. ‘Aarogya Jaal’, a tele-healthcare facility, was launched Exhibit E.4 in Rui, a taluka hospital in Baramati, Recommendations for Change Pune District, Maharashtra in 2006. • Ahmedabad Municipal Corporation and Gujarat Urban Development Corporation have developed a Bus Rapid Transport System (BRTS) to provide reliable and secure public transport with the primary objective of reducing travel time. Going forward, the challenge is to scale up such solutions, and make our over- all urbanization process intelligent. Intelligent urbanization is an Indian imperative. Source: Booz & Company A Report on Intelligent Urbanization ix Sample chapter 01.indd 9 5/4/2010 4:31:14 AM
  • 12. Strengthening Basics initiatives in order to ensure sustain- • Governance: Through constitutional ability amendments and increased power to ULBs • Mandating SLAs: Leverage technol- ogy to meet Government Citizen • Financing : Measures to ensure fi- SLAs and introduce performance nancial independence and viability scorecards of ULBs • Broadband and Connectivity: En- Enhancing Execution Capabilities courage networking amongst local • Building personnel capabilities: In- governments and building of data stitute state level municipal cadre; management capabilities appoint city CIO and institute sys- tems for capability building and skill In conclusion up-gradation Given the current scenario and huge opportunities in the near future, it is • Broadening resources: Explore av- critical for India to act immediately. To enues to minimize strain on existing attain the ideal of inclusive growth, it is municipal resources important that urbanization be socially equitable, economically viable and en- • Encouraging PPPs: Introduce initia- vironmentally sustainable. Different tives to promote PPPs in develop- examples from across the world have ment of urban infrastructure proved that technology is a key enabler to help achieve these goals at the lowest Embedding Technology cost and in the most efficient manner. It • SuBAH Framework: Aim for manda- is now for India to make this happen, tory adoption of SuBAH framework and this report attempts to lay out a while visualizing and executing new roadmap to do so. x A Report on Intelligent Urbanization Sample chapter 01.indd 10 5/4/2010 4:31:14 AM
  • 13. TABLE OF 1. The Urban Century 1 2. The State of Indian Cities 3 CONTENTS 3. Policy Initiatives and Impact 5 4. Urbanization Challenges in India 7 4.1. Structural challenges to urbanization in India 7 4.2. Execution challenges to urbanization in India 10 5. Dimensions of Urban Demand 12 6. Framework for Sustainable Urbanization 15 7. Building the Future through Intelligent Urbanization: Better, Cheaper, and Faster 16 7.1. Energy/ Utilities/ Water 18 7.2. Healthcare 19 7.3. Transport 20 7.4. Education 23 7.5. Housing 23 7.6. Security 25 8. The Roadmap 26 8.1. Strengthening the Basics 26 8.2. Enhancing Execution Capabilities 28 8.3. Embedding Technology 32 Endnotes 34 A Report on Intelligent Urbanization xi Sample chapter 01.indd 11 5/4/2010 4:31:14 AM
  • 14. Sample chapter 01.indd 12 5/4/2010 4:31:14 AM
  • 15. 1 Ban Ki-moon, the Secretary General of the United Nations, recently remarked transformative processes of human civilization in terms of social and eco- that we are living in the ‘urban centu- nomic parameters and reference points. ry’. For the first time in recorded his- Cities have changed the development THE URBAN tory, more people are living in urban paradigms of entire nations and have CENTURY areas than in rural. The urbanization laid the foundation for modern econ- trend has accelerated in the last cen- omies. They are the engines of eco- tury—whereas in 1950 only about 30 nomic growth and centres of culture, per cent of the world population lived entertainment, innovation, education, in cities, today the figure stands at just knowledge, and political power. There over 50 per cent. By 2030, UN forecasts cannot be high economic growth with- estimate that more than 70 per cent of out a high degree of urbanization. There the world population will be urbanized is a clear positive correlation between (Exhibit 1.1).1 the GDP of a country and its degree of urbanization. While not all urbanized Urbanization, defined as a spatial con- economies are developed, there is not centration of people and economic one developed country that is not ur- activity, represents one of the most banized. Statistical evidence unambigu- tatistical Exhibit 1.1 Urbanization and Economic Growth DISCUSSION  Urbanization is strongly correlated to prosperity  All high-income countries are 70-80% urbanized  Tokyo/ NY are as big as India in GDP terms; cities are able to create and sustain above-trend economic growth  Indian policy has been largely geared to dispersal, and ‘de-congestion’ of the major economic centres Source: World Bank; UN-Habitat Report on ëState of the worldís cities; UNFPA; Ni Pengfei, Chinese Academy of Social Sciences A Report on Intelligent Urbanization 1 Sample chapter 01.indd 1 5/4/2010 4:31:14 AM
  • 16. ously underscores the importance of past, when growth was led by indus- cities irrespective of the countries they cities—GDPs of mega cities such as To- GDPs trial enterprises and the manufacturing are geographically situated in. Thus the kyo and New York are similar to that sector, there was limited flexibility in concept of urban competitiveness is of India as a whole! the choice of physical locations of these rapidly gaining credence where cities, enterprises. Today, in the context of rather than countries, compete for re- Not only do cities catalyse growth, they the modern service-based industry in a sources and investments (Exhibit 1.2). also nurture creativity and talent as they fully networked world, globalization is offer space for interaction and engage- changing the very benchmarks of per- Within a country, the competitiveness ment for gifted individuals with drive formance, growth and competitiveness of individual cities is determined by fac- and aspiration. It has been argued that in urban areas. Ease of integration with tors such as quality of its infrastructure, the spatial proximity allows intellectual the world economy is a key determi- ability to attract talent, medical facili- spill-overs and free exchange of innova- nant of sustainable economic activity. ties and quality and cost of housing— tive ideas, eventually honing skills and these are becoming increasingly critical increasing productivity of the city and Globalization has released the power of to global investment decisions. In India, its people2. The urban environment can markets, standardized products, proce- the competition between Hyderabad also reveal and facilitate unexpected dures, quality parameters and regula- and Bangalore for incremental IT in- synergies between seemingly unrelated tions. This, in conjunction with the vestment and Gujarat’s plan to develop ideas that may provide important for- growth in service industries, has inten- GIFTa to challenge the dominance of ward leaps in knowledge. sified competition across cities for at- Mumbai in financial services indicate tracting economic activity. Investment this trend. Cities in the future will vie Growth triggers and centres of an ur- location decisions are now strongly with each other for attracting talent ban economy have been redefined and rooted in the assessment of compara- and investment, within the country as reinvented by each generation. In the tive advantages offered by different well as across national boundaries. Exhibit 1.2 Global Urban Competitiveness DISCUSSION  Cities are emerging as centres of eco- nomic traction, at times transcending the national framework  Cities compete with each other for at- tracting talent & investment  No Indian city appears in the Global Top 100 - Mumbai ranks a poor 114, and Delhi ranks 213  Top 10 cities with the fastest economic growth are mainly from China; no In- dian city makes the list Source: World Bank; UN-Habitat Report on State of the World’s Cities, UNFPA; Ni Pengfei—Chinese Academy of Social Sciences a Gujarat International Finance Tec-City 2 A Report on Intelligent Urbanization Sample chapter 01.indd 2 5/4/2010 4:31:15 AM
  • 17. 2 India has witnessed unbridled urban- ization in the recent past. During the This explosive growth of Indian cities in the last decades of the 20th century last fifty years, while the population has created a huge strain on the physi- of India as a whole has grown two cal infrastructure of cities. Power short- THE STATE OF and half times, that of urban India has ages, mismanagement of monsoon del- INDIAN CITIES grown nearly five times over. The urban uges, collapse of law and order, traffic population rose from 210 million in systems, pollution and congestion are 1992 (25 per cent of total population) a few of the innumerable instances to approximately 400 million in 2008 that expose the fundamental issues in (30 per cent of the total population).3 the delivery of services in urban India. Overcrowding is endemic while the ur- ban poor driven by unemployment and This rapid urbanization has been the low productivity suffer the outcomes of marker of India’s economic progress, inadequate housing and poor basic ser- where its major urban centres make vices provisioning. Paucity of afford- substantial contributions to its GDP able housing in cities has made India (Exhibit 2.1). Although less than 1/3 of home to the largest urban slum popula- India’s people live in cities and towns, tion in Asia. India has over 170 million these areas generate over 2/3 of the slum dwellers—this number surpasses country’s GDP and account for 90 per the populations of all but five countries cent of government revenue.4 The ser- in the world6. In fact, each major city vices sector accounts for more than half faces its own set of challenges with re- of India’s output, and growth of em- gards to electricity, transportation, wa- ployment (main workers) in urban In- ter systems, housing, solid waste man- dia during 1981–91 was recorded at 38 agement, infrastructure bottlenecks per cent as against 16 per cent in rural and poor service delivery. Although areas and 26.1 per cent in the country city-specific circumstances vary, over- as a whole.5 all, critical infrastructure is technologi- Exhibit 2.1 Impact of Urbanization on Growth Source: Ministry of Urban Development (MOUD) A Report on Intelligent Urbanization 3 Sample chapter 01.indd 3 5/4/2010 4:31:15 AM
  • 18. cally outdated, woefully inadequate, A comparison of quality of life indica- increasingly fragile, and incapable of tors of Indian cities with global coun- meeting even the current needs of all its terparts (Exhibit 2.2), highlights the residents. In many cases the issue is not poor ‘liveability’ of urban India. This simply one of poverty or the ability of is a critical need for the Indian econ- citizens to pay—it is as much a ques- omy for growing at a rate of over 10 tion of urban agencies, institutions and per cent in the next quinquennium, and governments being unable to facilitate access to these basic services for their for improving the quality of lives of its citizenry. citizens. Exhibit 2.2 Indian Cities do not Stack Up Source: World Bank, UN Habitat, Booz & Company 4 A Report on Intelligent Urbanization Sample chapter 01.indd 4 5/4/2010 4:31:15 AM
  • 19. 3 In the decade immediately following India’s independence, economic policy  The 74th Constitutional Amend- ment Act (CAA): The 74th CAA of focused more on rural areas. It was 1992 recognized Urban Local Bodies POLICY widely held that development of ru- ral India was critical to the country’s (ULBs) as the third tier of the gov- ernment, and instituted a framework INITIATIVES AND progress. Urban areas were treated as to significantly enhance their vi- IMPACT sectors of residual investment (Exhibit ability as well as functional capacity. 3.1). Amongst other things, the 74th CAA proposed the devolution of greater However, over the last decade, urban functional responsibilities and finan- development concerns have taken cen- cial powers to the local governments, tre stage as India’s rise as a major glob- adequate representation of weaker sections and women in ULBs, and al economic force has revealed the true regular and fair elections. This was potential of its cities. The need for ur- an important development since ban reforms and policy level interven- in many states local bodies had be- tions in order to sustain India’s impres- come ineffective due to failure to sive economic growth rate has been felt hold regular elections, prolonged more acutely. As a consequence, several supersessions as well as inadequate initiatives have been taken by the Gov- devolution of powers and functions. ernment of India. Consequently, the ability of ULBs to function as vibrant democratic units While many policy interventions have of self government had been severely been able to provide impetus for urban hampered. Several state governments development, the two major initiatives have now amended their Municipal that have had the most impact are: Acts/Laws/Legislations to conform to Exhibit 3.1 Timeline of Government Initiatives in Urbanization Source: Government of India websites, Booz & Company A Report on Intelligent Urbanization 5 Sample chapter 01.indd 5 5/4/2010 4:31:15 AM
  • 20. the Constitutional Provisions. How- for JNNURM funding, city admin- ever, the economic viability of ULBs istrations must submit a three tiered remains an issue and has significantly application with the following infor- restricted the ability of the ULBs to mation: fully discharge their responsibilities. 1. City Development Plan (CDP) de-  Jawaharlal Nehru National Ur- fining the vision for the city over ban Renewal Mission (JNNURM): the next 20-25 years; JNNURM is an INR 100,000 crore (USD 26 billion) Government of In- 2. Detailed project report, enumer- dia initiative launched in De cember ating the financial requirements; 2005. Administered by the Ministry of Urban Development and Ministry 3. Timeline for implementation of of Poverty Alleviation, the Mission the proposed initiatives. is designed to support state and lo- cal investment in urban develop- As of date, nearly 500 projects have ment. The central government spend been approved and over INR 20,000 amounts to INR 50,000 crore (USD crore has been committed by the 11 billion) with matching contribu- Government8. tion from cities/ states.7 JNNURM is a landmark in India’s The overall objective of the Mission urbanization policy and has infused is to ‘create economically produc- a sense of urgency amongst various tive, efficient, equitable and respon- stakeholders to ensure timely results. sive cities’. The aim is to encourage As a consequence of the JNNURM, reform and fast track planned devel- the government has drafted various opment of identified cities. The focus policies to address specific areas of of JNNURM is on efficiency and in- urban development such as National clusiveness in development of urban Urban Transport Policy (2006) and infrastructure and service delivery the National Urban Sanitation Poli- mechanisms, community participa- cy (2008). tion and accountability of ULBs to- wards citizens. The duration of the Though the steps taken by the govern- mission is for 7 years and covers 63 ment are commendable, there are many cities across the nation. To qualify challenges that still remain. 6 A Report on Intelligent Urbanization Sample chapter 01.indd 6 5/4/2010 4:31:15 AM
  • 21. 4 Urbanization challenges in India can be classified in two categories Unprecedented scale The scale of urbanization in India is un- (Exhibit 4.1): precedented—it is estimated that nearly 140 million people will move to cities URBANIZATION  Structural challenges, driven by the by 2020 and 700 million by 2050 (Ex- CHALLENGES IN nature of urbanization in India hibit 4.2). This is roughly 2.5 times the current total population of USA. INDIA  Execution challenges, faced in imple- menting initiatives to improve urban This scale of urbanization is expected infrastructure to transform existing urban agglomera- tions into mega-cities. Mumbai, Delhi 4.1 Structural challenges to urbaniza- and Calcutta are slated to emerge as the tion in India three largest cities in the world. In this Urbanization issues that India faces proliferation will lie, the origin of nu- today have their genesis in three struc- merous urban communities. There were tural challenges: 12 cities with population greater than 1 million in India in 1981. By 2001, that  Unprecedented scale number had grown to 35. According to some projections, there may be 68 such  High density cities cities by 2020.9  Brownfield urbanization Exhibit 4.1 Challenges of Indian Urbanization Largest urban movement in the Mumbai and Kolkata are the ~ 60% of urban growth through world, matched only by China world’s most densely populated natural population increase >700M new urban residents by cities (~10X New York) Unplanned growth 2050 5 of the 20 most densely populated cities in the world ~ 5-10 planned Greenfield Multiple models of urbanization projects are Indian Limited transparency Municipal expenditure only 0.5% Fragmented accountability of India’s GDP Incongruent city divisions (e.g. Narrow revenue base Bangalore has 88 wards for Inadequate capabilities policing, 39 for electricity etc.) ‘Leakage’of resources Source: Census Bureau; Goldman Sachs Research; United Nations Department of Economic and Social Affairs; City Mayors; UNFPA State of the World Population Report 2007; Indian Statistical Institute; Aijaz, Rumi (2007) ‘Challenges for urban local governments in India’. Working Paper, 19. Asia Research Centre, London School of Economics and Political Science, London, UK; Booz & Company A Report on Intelligent Urbanization 7 Sample chapter 01.indd 7 5/4/2010 4:31:15 AM
  • 22. Exhibit 4.2 Unprecedented Scale Source: Census Bureau; Goldman Sachs Research; United Nations Department of Economic and Social Affairs Exhibit 4.3 Multiple Models of Urbanization (2001) Delhi is 93% urban 330 due to the state’s 65% unique composition 36 291 Centralized Model 60% (as in South Korea) West Bengal 25 55% 244 17 50% 129 198 108 45% 10 85 40% Maharashtra 153 9 68 35% 115 Karnataka 6 50 30% 82 35 Gujarat 4 158 165 25% Jharkhand Andhra Pradesh 56 23 142 120 20% Kerala Tamil Nadu 12 3 94 Bihar 74 Punjab 41 55 15% Haryana Rajasthan 10% 1981 1991 2001 2011 2021 2031 2041 2051 Uttar Pradesh Madhya Pradesh Decentralized Model 5% No. of cities >5M (as in Germany) No. of cities >1M 0% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% No. of cities>0.5M Source: Census Bureau; Goldman Sachs Research; Booz & Company 8 A Report on Intelligent Urbanization Sample chapter 01.indd 8 5/4/2010 4:31:16 AM
  • 23. The challenge is compounded by the High density cities The higher density of population results fact that multiple models of urbaniza- Not only will Indian cities be amongst in greater pressure on infrastructure. tion (with respect to urban centraliza- the largest by 2050, they will also be On the other hand, limited flexibility tion) have evolved simultaneously in among the most densely populated in land use, and lack of resources will India and co-exist within its geogra- worldwide. The current population continue to hinder infrastructure devel- phy. Some states such as West Bengal density of Mumbai is already 10 times opment and land use for community are centred on a single large tier-1 city. that of New York (Exhibit 4.4). This facilities. This will impact the creation Others such as Gujarat or Kerala have is likely to go up significantly as the of sustainable living environments. a relatively large number of compara- population of Mumbai rises to over Policies formulated and solutions con- tively small cities. This makes a ‘one 20 million by 2020. This situation is structed must acknowledge this high size fits all’ solution infeasible (Exhibit further exacerbated by low per capita density–low per capita income scenario 4.3). incomes. in all its manifestations. Predominantly brown-field urbaniza- tion In India, the most significant challenge will be to revitalize our existing urban centres, while strengthening capacity to support the future growth. Exhibit 4.4 Contrary to conventional belief, ur- Population Density of Indian Cities - among the highest in the world banization in India is driven by natural population growth as opposed to mi- gration. Consequently, India will con- tinue to grow its existing towns and smaller cities in the future—cities with histories, cultures, populations, proper- ty rights, and deeply embedded politi- cal interrelationships, all of which de- mand cognizance and respect in policy administration. A city cannot be wiped clean and planned anew. The process of revitalizing our existing cities must be carried through without interrupt- ing ongoing services or disrupting lives of millions of people. This poses sig- nificant implementation challenges on ground and makes upfront consensus, robust design and speedy execution very important. Our cities were not built for the in- creases in populations that they are experiencing or will experience in the future; nor were they designed for this rate of expansion. Source: citymayors.com, 2007 A Report on Intelligent Urbanization 9 Sample chapter 01.indd 9 5/4/2010 4:31:16 AM
  • 24. 4.2 Execution challenges to urbaniza- Exhibit 4.5 tion in India Governance Challenges Efficiency in governance Governance suffers from policy limita- Limited policy alignment Lack of oversight with Limited number respect to ULB portfolios in for increasing private sector tions and administrative problems (Ex- of ‘smart regulations’ participation the case of policies/planning at national/state levels hibit 4.5). Policy Limitations: Most initiatives Existence of multiple are focused on building new infra- Overburdened municipalities Poor accountability agencies with minimum with poor execution capabilities structure—adding to scale, rather than coordination sweating existing assets or more ef- ficiently using available funds for sus- Source: Aijaz, Rumi (2007) ‘Challenges for urban local governments in India’. Working Paper, 19. Asia Research Centre, tainable urban development. Regula- London School of Economics and Political Science, London, UK; Booz & Company tions are thus not ‘smart’, and do not incentivize use of technology/ IT for increasing efficiency. Municipal governance is assumed to be a State Function by the Indian Consti- tution; Entry 5 of the State List in the However, the list is merely advisory in and forward linkages associated with Seventh Schedule of the Constitution nature. Whether or not states devolve their functions. of India gives legislative power to the powers, and to what extent they do so, State with regard to municipal laws, is entirely a matter of state choice. What- Additionally, multiple structures of establishments, constitution, and pow- ever powers or functions are devolved, service delivery exist with criss-cross- ers of local government. Except for will be subject to provisions in existing ing administrative jurisdictions. For recognizing local self-government as an enactments. As a result, the powers of instance, a Janaagraha study10 high- essential part of the system of govern- local bodies on all matters are subsidi- lighted that Bangalore’s service delivery ment, the Constitution does not confer ary to those of the states. Consequently, structure is as follows: independent status or powers to local ULBs are not empowered to function as government bodies. independent arms of governance.  Public works are carried out under 12 engineering divisions The 74th Constitutional Amendment Administrative Problems: Municipali- Act (CAA) of 1992 seeks to provide ties are overburdened, resulting in poor  Garbage collection divides the city more power and authority to ULBs. levels of service delivery. into 278 health wards It is the first serious attempt to ensure stabilization of democratic municipal The existence of a large number of de-  Property taxes are collected through government through constitutional partments, agencies and officers under- 30 Assistant Range Offices provisions. It introduced the Twelfth taking similar, related or over-lapping Schedule which lists the functions of functions, leads to conflict in opera-  Electricity services are structured ULBs, covering planning, regulation tion. These agencies operate in overlap- along 39 sub-divisions reporting to and developmental aspects. ping jurisdictions and are often not in a 10 divisions position to fully understand backward  Water supply is managed through 5 10 A Report on Intelligent Urbanization Sample chapter 01.indd 10 5/4/2010 4:31:16 AM
  • 25. divisions, 17 sub-divisions and 74 Exhibit 4.6 service stations Property Tax Collection Efficiency Collection Efficiency (2005–06, Select Indian Cities)  Bus service is monitored through 24 depots  Law and order is dispensed via 88 police stations, and traffic through 29 of these stations  Slum Development is coordinated through 4 sub-divisions Not one of these criss-crossing admin- istrative jurisdictions is aligned to a political unit. A political unit has an inherent accountability associated with Source: ICRA it. As a result, there is limited account- ability in service delivery. Resources Enhancement fore, the financial viability of municipal Resource constraints are not only finan- Cities have narrow financial resource corporations is dependent on the trans- cial but also capability driven. Planning bases leading to monetary constraints. fers from the State Governments. capabilities often do not match up to requirements. Consequently, city devel- Share of transfers from state govern- A city’s own revenues are mostly de- opment has mostly been short sighted ments in the revenues of municipali- pendent on octroi and property taxes. and not holistic. Capacity to execute ties was 31.7 per cent on an average Most urban districts have abolished has also traditionally been poor due to (2001/02). Municipalities in several octroi; property tax collections suffer shortage of skilled personnel. Our in- states are almost entirely transfer-de- from evasion and low levels of collec- terviews with Municipal Commission- pendent for running local services. The tion efficiency (Exhibit 4.6). ers and Mayors clearly highlighted that dependence was as high as 84 per cent the biggest limitation to project execu- in case of Jammu & Kashmir, 83 per Consequently, Indian cities are unable tion is unavailability of skilled person- cent in case of Rajasthan and 74 per to commit requisite financial resources nel. This is further exacerbated by the cent in case of Uttar Pradesh. There- for development (Exhibit 4.7). use of archaic tools and processes. Exhibit 4.7 National Municipal Government Expenditure: Global Comparison Source: Goldman Sachs Research A Report on Intelligent Urbanization 11 Sample chapter 01.indd 11 5/4/2010 4:31:16 AM