Tender issues becomes roadblock to Smart City project

Q: Hi, what roadblocks is the Smart City project currently facing?

Surinder,

19th March 2015

Real estate News in Mumbai

mckinsey

smart city project

smart city project in mumbai

national institute of urban affairs

niua

tender cancellation issue

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Replies (4)

Hi folks!!!!
We all know that the government has recently identified 98 cities for the Smart City Project. But funding for these projects and its execution will be a major challenge for companies. There is no doubt that this mission is expected to improve the quality of life for citizens of these cities. For government, the focus is on sustainable and inclusive development and the idea is to look at intensive areas and create a exemplary model.

Arushisha, Mumbai

15th September 2015

Comment

I agree with you Arushi, but i think that it would be better if the govt's focus on smaller number of cities first and then developing them as model for others going forward.

Under the mission, it will be operated as a centrally sponsored scheme and the center will give financial support to the limit of Rs 48000 crore over 5 yrs, which is on an average Rs 1000 crore per city per year. And an equal amount, on a matching basis, will have to be contributed by the state and urban local bodies.

ujwal nikam, Pune

15th September 2015

"Thoda Khaye But Achcha Khaye" .....Sarkar ko ish trah sochna chaiye

If we look at the list of cities which have been selected as smart city, many of them would already have annual municipal budgets running into multiple times of this figure. On the other hand, there are few states which have shown doubt for implementing the scheme and if there is not enough support from them in terms of funding and administrative help, it would be difficult to take this scheme to its reasonable result.

Arushisha, Mumbai

15th September 2015

Yes, govt. should support them first. "Jyada Khakar Bimar Hone se Achcha Hai ki Kum Khakar Healthy Rahe".........

Government grants will be leveraged to attract funding from internal and external sources but unless there is a possible business model or guarantee from the centre, this would not be easy.

Also, the track record of Public Private Partnership (PPP) projects is at best mixed and when there would be multiple parties involved like the center, states, local bodies and private entities, the task would be even more challenging.

Devesh Kumar, Ahmedabad

15th September 2015

Hi folks,
It is came to know that Maharashtra government is thinking over its own "Smart City" project with an aim to provide development opportunities to cities that have not been selected by the Centre under its ambitious programme.

As per the State Urban Development Department, the project is at a beginning stage for now and nothing has been finalized on paper as yet. However, the Chief Minister has in-principle and given his approval to go ahead.

Arup rajan, Mumbai

19th August 2015

Comment

Yes Arup,
Mumbai, Thane, Kalyan-Dombivli, Nagpur and Aurangabad are among ten cities selected from the state for the Centre's "Smart City" project. State had chosen 33 cities for the Smart City project. However, according to limitation of 10 cities, state had to drop other cities. The preparation of these cities was admirable and hence, the state government has decided to introduce its own "smart city" project so that they can change the face of these cities.

pradyumanapte, Mumbai

19th August 2015

Hmm,,,,,
A decision on allotment of funds to develop these as smart cities under the state government's project will be taken soon and it will later be placed before the Cabinet for its approval.

The Centre, under its flagship programme, will provide Rs 100 crores to each of the 10 cities selected by it so that they can prepare a plan of their own. These cities will then consult NGOs and citizens before finalizing the plan of their smart city

Arup rajan, Mumbai

19th August 2015

At the same time it is also came to hear that the document was uploaded on the NIUA website and a quick look at the Word file's properties showed McKinsey consultant Amit Gupta as its author. The document was also uploaded on the government's Central Public Procurement portal.

Lokesh Patwa,

19th March 2015

Comment

HI Lokesh,
But the question arise here that whether McKinsey would apply or not when the government releases a new document, with new specifications. The ministry has been taking inputs from private consultants on the crucial project, and some McKinsey people may have been called for some clarifications on it.

Mansoor Bithal, Mumbai

19th March 2015

@Mansoor,
According to Ministry sources, there was no conflict of interest yet since the old tender had been cancelled and the new one had not come out. So, whether McKinsey would apply or would have applied is speculative as of now.

Lokesh Patwa,

19th March 2015

Hi,
It is came to know that the International consultancy firm McKinsey unofficially helped out the urban development ministry in preparing the groundwork for the Rs 7000 crore project and one of its consultants even authored a key tender document for the selection of the consultant, Having said that, the firm itself was not interrupted from bidding for the tender and was evidently working on a bid when the tender was throw away on March 9, hardly 48 hours before the closing date.

pradyumanapte, Mumbai

19th March 2015

Comment

Hi Pradyuman,
But i heard that the tender was cancelled after the ministry and NIUA received several complaints about the conflict of interest and that the document was prepared to benefit McKinsey,

Lokesh Patwa,

19th March 2015

You are right Lokesh,
And McKinsey's role in the project was leak after the National Institute of Urban Affairs (NIUA), which is responsible to implement the project, released the tender seeking request for qualification cum request for proposal on February 17.

pradyumanapte, Mumbai

19th March 2015