Smart city projects face challenges
The lack of a holistic, framework-based approach and a viable revenue model are stalling large-scale smart city projects in India, according to Gartner, Inc. As a result, many small pilot projects are underway, but no big citywide projects have been announced. Gartner predicts that through 2020, less than 10% of smart city projects implemented across India will be of a large-scale, city-wide nature.
“While many Indian cities have announced smart city projects, a structured approach in selecting these projects has thus far been missing from most city councils,” says Ganesh Ramamoorthy, research vice president at Gartner. Funding for smart cites will also require serious consideration. Gartner believes that of the current funding, only about 20% will be used for IT-based smart city product, solution and service implementation, while the remaining 80% will be used for physical infrastructure development.
“The challenge is the limited budget of the city council, which does not really permit the city to build, operate, maintain and support the entire smart city infrastructure,” says Ramamoorthy. “The limited budget also limits the ability of the city councils to enter into a contractual agreement, which includes a one-time implementation fee, to build the service delivery infrastructure,” he says.