India Smart Cities Project Requires Overall Investment in tune of USD2 Trillion

 Government to Actively Use PPP Route and Encourage FDI for Effective Implementation of Smart Cities Project in India

A smart city is enabled with highly advanced technology encompassing a network of sensors, cameras, wireless devices, IT infrastructure and data centers to efficiently provide essential services such as electricity, water supply, sanitation, recycling, transportation, etc. and ensure their effective management. Government of India has envisioned to set up 100 smart cities, with most of the states having at least two smart cities.Under this initiative, the government has set the benchmark for identification of smart cities based on an array of parameters including current population, presence of tourist spots, and religious and economic importancea city carries with itself.

According to TechSci Research report “Market Study on Upcoming Smart Cities in India, 2015”, the smart cities project in India would entail investments of around USD2 trillion for development of trunk and internal infrastructure in 100 cities planned under the project. The government is focusing on encouraging Public Private Partnership (PPP) for successful implementation of smart city project in India. Financial and IT services sectors are on the priority list of the government to garner investments from leading companies such as Cisco, EMC, GE, IBM, Bajaj, etc. in coming years. Few of the major companies that are currently involved in project planning of these cities include Halcrow, Synoate, Knight Frank and AECOM India.

“The first phase of Dholera smart city in Gujarat is expected to be completed by 2023. Financial and IT services are the focus areas of development in the first phase of Dholera smart city. Overall cost involved in building infrastructure in the first phase of Dholera smart city is expected to be around USD2.73 billion.” said Mr. Karan Chechi, Research Director with TechSci Research, a global management consulting firm.

“Market Study on Upcoming Smart Cities in India, 2015” has evaluated the future growth potential of the smart cities in India and provides infrastructure costing of various currently active smart city projects in the country. The report is intended to provide cutting-edge market intelligence and help decision makers take sound investment decision. Besides, the report also identifies and analyzes the emerging trends along with essential drivers and challenges associated with smart city development in India.