Smart Cities on the horizon : Real Estate Boom expected in 2017

smartcitiesBy Accommodation Times News Services

The Golden Temple city of Amritsar topped the list of 27 new smart cities announced by the Minister of Urban Development Shri M.Venkaiah Naidu here today. Eight other cities of pilgrim and tourism importance that made  to the third list of smart cities are ; Ujjain, Tirupati, Agra, Nashik, Madurai, Thanjavur, Ajmer and Varanasi. With this the number of cities selected under Smart City Mission for financing implementation of smart city plans has gone up to 60.

Announcing the cities that were selected in a competition among 63 cities, Shri Naidu said “The willingness and enthusiasm among cities to participate in more than one round of competition is a clear evidence of the urban renaissance set in motion. Competition bases selection has made the cities rediscover themselves as they are undertaking a thorough assessment of gaps in the present levels of infrastructure and service delivery and come out with comprehensive, credible and actionable plans for area based development and technology based Pan-city solutions”

The Minister informed that the new 27 smart cities have proposed an investment of Rs.66,883 cr under smart city plans including Rs.42,524 cr under Area Based Development and another Rs.11,379 cr for technology based Pan-city solutions that benefits all the citizens of respective cities. With this, the total investment proposed by the 60 cities selected so far has gone up to Rs.1,44,742 cr, he said.

The 27 cities selected in the latest round of ‘Smart City Challenge’ competition in order of the marks scored by them are:

S.No City State
1 Amritsar Punjab
2 Kalyan-Dombivili Maharashtra
3 Ujjain Madhya Pradesh
4 Tirupati Andhra Pradesh
5 Nagpur Maharashtra
6 Managaluru Karnataka
7 Vellore Tamil Nadu
8 Thane Maharashtra
9 Gwalior MP
10 Agra Uttar Pradesh
11 Nashik Maharashtra
12 Rourkela Odisha
13 Kanpur UP
14 Madurai Tamil Nadu
15 Tumakuru Karnataka
16 Kota Rajasthan
17 Thanjavur Tamil Nadu
18 Namchi Sikkim
19 Jalandhar Punjab
20 Shivamogga Karnataka
21 Salem Tamil Nadu
22 Ajmer Rajasthan
23 Varanasi UP
24 Kohima Nagaland
25 Hubbali-Dharwad Karnataka
26 Aurangabad Maharashtra
27 Vadodara Gujarat


The 27 smart cities announced today are from 12 States including 5 from Maharashtra, 4 each from Tamil Nadu and Karnataka, 3 from Uttar Pradesh and 2 each from Punjab and Rajasthan. Nagaland and Sikkim have made it to the smart city list for the first time.

With today’s announcement, implementation of smart city plans is now spread over 27 States and UTs, said Shri Venkaiah Naidu. 9 States/UTs still to enter implementation phase are; Uttarakhand, J & K, Meghalaya, Mizoram, Nagaland, Arunachal Pradesh, Puducherry, Lakshadweep, Daman & Diu and Dadra, Nagar & Haveli.

Stating that Smart City Mission is running ahead of schedule, Shri Venkaiah Naidu informed that the next round of competition to select the remaining 40 cities would begin in January next year.

Shrinivas Kowligi, Partner – EY India  said “With now 60 cities across India eligible for funding support from GoI, the biggest challenge is going to be talent and expertise – both within and outside the government. The competencies needed for addressing the myriad challenges Indian cities face, and to handhold them in their journey to get smart, requires diverse technical skills, project development and management expertise. Ministry of Urban Development now needs to drive transformational initiatives to scale up human resource capacity in the country to address this challenge.

Many of the tier 2 and tier 3 cities in the list have very low administrative and management capacities. These are the cities that can broad-base economic development in their respective States, and widen the base of wealth creation. Building Smart Cities is more than preparing tender documents, and contracting out works. Hence, State Government should provide adequate focus to these cities.

Just as the Ministry of Urban Development established Standard Service Level Benchmarks for urban services many years ago (~ 2007 -08); MoUD should now establish benchmarks for smart urban services. For eg. establish what capabilities a city emergency response services should entail; or what a mobile app for journey planning should be capable of.”

Arindam Guha, Senior Director, Deloitte in India said  “The Smart City Challenge continues to generate significant enthusiasm throughout the country. With the addition of these 27 cities, a total of 60 cities are now eligible for funding under the programme. The high interest and participation levels in the Smart City plan development phase now needs to be sustained through quick implementation on the ground. Cities which are able to prioritize their implementation initiatives by identifying quick wins, adopt relevant best practices and leverage expertise available in the external eco-system are expected to be the real winners going forward.

“The Smart City programme has already brought in an extent of standardization in city level planning. For example, smart solutions around traffic management, solid waste and municipal services like trade licenses, payments, grievances etc. feature in most of the approved Smart City plans. With quick implementation being the need of the hour, it remains to be seen whether MoUD comes up with some sort of a common support mechanism for select interventions to fast track implementation. Such sharable common platforms (for example cloud based solutions) may be particularly suited for Information and communication technology (ICT) related initiatives and help cut down on implementation time, optimize one time investments and also overcome existing capacity constraints in Government.” he added.

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