Smart Cities in West India

Q: Which localities in Mumbai are going to be Smart Cities?

Dwarkesh,

26th June 2015

Real estate News in Mumbai

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dholera special investment region

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Replies (16)

Dear Dwarkesh
u can find complete information in www.indiasmartcities.com

praveen, Hyderabad

29th October 2015

Comment

There are certain information which you didn't mentioned in your report like first 20 smart cities have been selected for first round and Rs. 100 crore has been issued to those cities.

Apart from that, Mumbai Coastal region and forest dept. has warned the govt. that it not good for any construction near forest and coastal zone.

Ravindra Singh,

5th November 2015

Hello everybody!!!
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.

Jyothi J, Ahmedabad

15th September 2015

Comment

Hello Jyothi!!!
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 centre 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.

Sunil Joshi, Mumbai

15th September 2015

Right Sunil,
"Thoda Khaye but achcha Khaye" .....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.

Jyothi J, Ahmedabad

15th September 2015

Yes, "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.

Milind, Bangalore

15th September 2015

Yes Milind,
Any boom in the housing space is likely to benefit companies operating in its substitute sectors. Most famous name among them are companies in cement, paints, electrical and piping segments.

Sunil Joshi, Mumbai

7th September 2015

Comment

Yes, it is expected that It will be below 20% in case of water, below 60% in case of power and less than 80% for gas. Even the ministry have noted that for urban local governments, parking fee is an important source of revenue, besides having the dual impact of influencing commuting choices in favor of public transport.

Manisbapu, Mumbai

7th September 2015

Comment

I think you have wrongly mentioned the date. The current scenario is matching with your data. It was also suggested that where services can be measured and beneficiaries identified, user charges must be applied. Water and sewerage charges should be levied separately rather than built into property tax, as is done by some states.

Sunil Joshi, Mumbai

7th September 2015

Ohh sorry.....Sunil,
Experts believe that the thrust on improving existing infrastructure and lifestyle in urban India is likely to drive demand in a few select sectors. According to the Ministry of Urban Development, being classified a Smart City would require basic elements like adequate and potable water supply, efficient waste management solutions, electricity connections, affordable housing, high-speed Internet connectivity and more.

Manisbapu, Mumbai

7th September 2015

Definitely Manis,
Spending huge on these sectors will benefit companies in sectors associated with such amenities. However, it would be some time before the project related work starts reflecting in the numbers of these firms, given that it is yet to take off the ground. Investors need to take at least 3 to 5 years perspective while investing in any of these names. Here are some stocks that could emerge winners from the Smart City push.

Milind, Bangalore

7th September 2015

Hey Komathi,
The plan aims to increase cost recovery to at least cover operation and maintenance charges. Since there will be a huge resource requirement for Smart Cities Mission and Atal Mission for Rejuvenation and Urban Transformation, the Ministry consider the idea at a recent regional workshop on Smart Cities here.

Milind, Bangalore

7th September 2015

Comment

Because of the huge investment in Smart City project, the ministry is planning to develop a Model Concession Agreement in Urban water supply based on tariff indexation to inflation to reduce risks.

The 14th Finance Commission has recommended enhancing the resource base of urban local bodies through imposition of Betterment Tax, Impact fees, Advertisement tax, tax on newer forms of entertainment, raising ceiling on Profession tax from Rs 2500 to Rs 12000/year.

Jyothi J, Ahmedabad

7th September 2015

I think you are right.....
Apart from that, the model document also covers risk distribution between public and private sectors, performance standards and coverage targets besides providing for flexibility to urban local bodies.

Union Development Ministry has hint that user charges were way below cost recovery in urban areas. Low parking rates in cities was also observed.

Milind, Bangalore

7th September 2015

Hi folks.....
is it true that IIT Bombay Alumni Association is looking to work together with the government to assist in providing solutions for Prime Minister Narendra Modi's flagship programme of creating 100 smart cities?

The association has thought of a platform "Global Business Forum" under which it will bring all the stakeholders in the realty industry under one roof to discuss the issues related to the sector, during a seminar to be held between October 16 to 18 this year.

Sunil Joshi, Mumbai

4th September 2015

Comment

Thanks for the information Sunil.....
What is Global Business Forum? What will be its role in Smart City project?

Anandraj Iyengar, Chennai

4th September 2015

Ur Welcome Sir!!!!
Through Global Business Forum, representatives from national and international businesses, trade delegations, academia and governments will be able to link directly with latest innovations in technology, explore collaborations and seal partnerships through a single platform.

Sunil Joshi, Mumbai

4th September 2015

@Sunil,
Today morning, i heard that the Urban Development Ministry has proposed plans linking of user charges to inflation to finance Smart Cities. Is it true?

Komathi, Chennai

7th September 2015

Hi guys!!!!
I heard that yesterday, Cidco MD, Sanjay Bhatia gave a presentation about several projects undertaken by Navi Mumbai for its smart city plan to pass on across the country at a meeting organized by Niti Aayog in New Delhi.

Jyothi J, Ahmedabad

3rd September 2015

Comment

It is true Jyothi......
Cidco was the only planning authority to be invited to make a presentation on Smart City Project and gave a presentation about many projects under taken by Navi Mumbai.CIDCO itself is a planning authority and not seeking any fund for the smart city project.

Sunil Joshi, Mumbai

3rd September 2015

Hi Sunil & Jyothi,
Yesterday you were talking about the Modi's ambitious project "Smart City" and the same day (03.09.2015) Union Urban Development Ministry sanctioned a sum of Rs 192 cr under Smart City Mission for 96 cities included in the ambitious project.

Each of the cities has been given Rs 2 cr for preparing Smart City plans with the assistance of technical and hand holding agencies.

Manisbapu, Mumbai

4th September 2015

Right Manis,
Really a good news for the country....we have stepped forward for the nation's development. Sanction Orders were issued to 38 smart city representatives from 11 states who attended the Regional Workshop here. But funds for Delhi and Chandigarh will be sanctioned soon by the Home Ministry.

Jyothi J, Ahmedabad

4th September 2015

It seems to me that a Smart City plan is a business plan for a municipality. Each of them has to prepare projects accordingly in terms of delivery capacity and the financing options available. To put it in perspective, only 8 cities till 2014 have issued municipal bonds for a total sum of just Rs 4450 crore in 18 yrs.

Jyothi J, Ahmedabad

1st September 2015

Comment

Varanasi and Gaya may have an outstanding tourism footfalls, but not all cities located out of the freight corridor zone will be so lucky. In other words, what is the special or differential story they can hold out to make investors willing to invest in their Smart City projects. It will be a big challenge for them to attract the investors.

Vibhu, Lucknow

1st September 2015

Out of 98 selected cities, 24 are capital cities, 24 are business centres, 18 are of cultural and tourism importance and 5 are port cities & there are educational and healthcare hubs.

Bengaluru and Dhanbad in Jharkhand, in spite of being million plus cities, have been lost. Also while Chennai and Mumbai have made the cut, it is only 2 small areas of Kolkata i.e.New Town and Bidhannagar that are included.

Diptarishi dev, Kolkata

1st September 2015

If one looks at the geographical spread of the 98 shortlisted cities it can be witnessed that a large number of them are clustered around the freight corridors the government plans to build.

Urban Development Minister Venkaiah Naidu has kept the most difficult part of the selection process to later in the year. By November 2015, his ministry will select 20 cities and towns out of this list.

Pranab Malakar,

1st September 2015

Comment

True, it is not the end of the road for those which fail to make the grade, as the minister has himself pointed out. They can be selected later. Yet the true test of this "Smart City" model will come when the ministry has to say no and send 78 proposals from these municipalities back for reconsideration.

Manisbapu, Mumbai

1st September 2015

@Manis,
This will be possibly the first time in Indian development planning history where the government will publicly cut back projects even if on a temporary basis as unsuitable for funding. In this phase, Naidu will reject 5 towns for each one he approves.

Pranab Malakar,

1st September 2015

And similarly, for public authorities to be told they have not passed the grade, even if they have the options to improve, is a new challenge of governance and they will come to know if the Centre has stomach for undertaking that sort of cutting from the menu card.

Manisbapu, Mumbai

1st September 2015

Hi Raj,
The next stage is the choosing 20 cities in the 1st lot by end of the year and in the next 2 years 40 cities each will be selected for receiving Central funding of Rs 500 crore spread over the coming 5 yrs. The Centre will release Rs 2 crore for each of the 98 cities in the next couple of days for preparation of Smart City plans.

Yes, those cities which are not selected in the 1st round can again participate in the 2nd and 3rd round by improving their performances. Even states can nominate new names after elimination of some cities in the final round of selection.

Sunil Joshi, Mumbai

28th August 2015

Comment

Thankis Sunil,
Who will benefit from the Smart City? Which cities missed out?

Rajib, Faridabad

28th August 2015

Hi Rajib,
About 12 crore people will be the direct beneficiaries of the Smart City project.

9 capital cities that could not be nominated for Smart City development are Patna, Itanagar, Shimla, Banglaore, Daman, Thiruvanathapuram, Puducherry, Gangtok and Kohima.

Sunil Joshi, Mumbai

28th August 2015

Yes, 35 cities and towns have a population between 1 and 5 lakh. There are 21 cities with population ranging between 5 and 10 lakh, 25 cities have population of above 10 lakh and below 25 lakh. A set of 5 cities are in the population range of 25 to 50 lakhs. 4 cities namely Chennai, Greater Hyderabad, Greater Mumbai and Ahmedabad have population of about above 50 lakh each.

Sandeep Mhatre, Mumbai

28th August 2015

Comment

Why is it only 98 and not 100 as per the original plan? Is there any issue with those cities? Kindly express....

Raj Roy, Delhi

28th August 2015

Well Raj,
Jammu & Kashmir has to nominate one more city. The state wants both Jammu and Srinagar to be developed as Smart City, though the state has got only one slot in the project.

As far as Uttar Pradesh city is concerned, there are 2 contenders with both Meerut and Rae Bareli getting equal points. So now the state has to decide whom it wants to nominate. This is the reason why the list is 2 short of 100, which was the original project.

Sandeep Mhatre, Mumbai

28th August 2015

What next for the shortlisted cities? Is there any rule for those cities which are not selected in the first round can again participate in the second and third round by improving their performances?

Raj Roy, Delhi

28th August 2015

HI all,
The Centre today announced the names of 98 cities selected for the Modi government's flagship project "Smart Citie"s but Bengaluru and Patna are not in the list. The names of the cities selected for the Rs 48000 crore Smart Cities project was released by the Centre pending a nomination each from Uttar Pradesh and Jammu and Kashmir.

Sunil Joshi, Mumbai

28th August 2015

Comment

Earlier, Prime Minister Narendra Modi launched the aspiring project with announcement of criteria and guidelines for 100 Smart Cities to be selected through city challenge competition in 25 June. But the criteria and the guidelines fixed for the smart city project was not fitted for the Bengaluru and the Patna. That is the reason these cities are not in the final list.

Sandeep Mhatre, Mumbai

28th August 2015

Then which are the cities selected for the Smart Cities project?

Puneet Laskar,

28th August 2015

The major cities include under PM Narendra Modi's flagship project are Vishakhapatnam, Guwahati, Chandigarh, NDMC, Panaji, Gandhinagar, Ahmedabad, Surat, Mangaluru, Hubballi-Dharwad, Kochi, Navi Mumbai, Nasik, Thane and Greater Mumbai. The list includes 13 cities from Uttar Pradesh, 12 cities from Tamil Nadu, 10 from Maharashtra, 7 from Madhya Pradesh, 3 from Bihar and 3 from Andhra Pradesh.

Sandeep Mhatre, Mumbai

28th August 2015

But above mentioned list counted only 48 which are rest of them? Are these cities selected on population base? How????

Puneet Laskar,

28th August 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.

Manisbapu, Mumbai

19th August 2015

Comment

Yes Manis,
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.

Lekshmi,

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 major 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.

Manisbapu, Mumbai

19th August 2015

Hi everybody,
I am from Ahmedabad and eagerly waiting for the smart city in our native village? Do you have any updates on it as It was announced in September 2014.

Puneet Laskar,

26th June 2015

Comment

Hi Puneet,
Aurangabad is an important city in Maharashtra. The city is a hub for tourism. It is specifically famous for the Ajanta and Ellora Caves, which are UNESCO World Heritage sites. The city now has the Shendra-Bidkin industrial park developed by MIDC, which will now be developed as a smart city. It lies on a strategic location, on the Delhi Mumbai Industrial Corridor (DMIC). As DMIC is aimed at developing the industrial zone across six states, the Shendra-Bedkin industrial park , which lies on this belt will also be developed as a smart city.

Jyothi J, Ahmedabad

26th June 2015

Thanks Jyothi,
Which are the major areas of Aurangabad? What is the most common housing types in this region and it's price per square feet? Do you have any idea about it's connectivity to the major parts of the city?

Puneet Laskar,

26th June 2015

Well Puneet,
Aurangabad has excellent connectivity to the other parts of the city like it is about 8 km from the Aurangabad airport, about 19 km from the Aurangabad railway station and about a 15 minute drive from the city of Aurangabad.

As off now, there is not much real estate activity here. However, the areas close to the industrial park have some real estate activity happening. Some of the nearby areas include Chikalthana, Jalna Road, Gangapur and Garkheda.

The most common housing types in the region are multi-storeyed apartments. One may find a good number of 1/2BHK apartments in the region with a price range of about Rs 15-30 lakh for 1BHK and about Rs 20-40 lakh for a 2BHK apartment. The average property values in the region are in the range of Rs 3150/sq-ft.

Jyothi J, Ahmedabad

26th June 2015

Hi Santosh,
What about Dholera? Which are the key factors earmarking Dholera as a smart city?

Lekshmi,

26th June 2015

Comment

Hello Lekshmi,
Dholera is a small town in Gujarat near the Gulf of Khambhat. It is a small industrial town within the limits of Ahmedabad district. It is a port city in proximity to the western coastal line. The town lies on the junction of the Bhavnagar-Pipali Highway and Dholera Road. NH-8 (DMIC Corridor) connects the Dholera Special Investment Region (SIR) to Ahmeabad, Bhavnagar and Mumbai. NH-8A connects it to Bagodra, augmenting the Bagodra-Bhavnagar and Bagodra-Surendranagar-Radhanpur links.

There are several factors for earmarking Dholera as a smart city. The town has a locational advantage due to the proximity to Ahmedabad as well as its good connectivity due to national highways, the Delhi Mumbai Industrial Corridor (DMIC) and distance from the Dedicated Freight Corridor (DFC) in Central Gujarat.

Pranab Malakar,

26th June 2015

Do you think that dholera as smart city will give boost to town's real estate market? There are not many apartment or residential projects in the area yet, but there are several residential plots being sold in SIR? Which are the major developers of this region? What are the plot sizes and it price range?

Lekshmi,

26th June 2015

Definitely, the announcement of Dholera as a smart city is giving boost to the town’s real estate. There are already different phases being developed in Dholera Metro City. Some of the major developers include Bkesar Group, Magnanimous Infra Pvt Ltd and Jeevansrushti Infra projects Pvt Ltd. The Dholera SIR Infra Development Ltd is also developing residential plots in the Dholera Metro City area. Plot sizes are in the range of 900 sq-ft. to 9000/sq-ft. The prices of these plots are in the range of Rs 2 lakh to 29 lakh, depending on the location and developer.

Pranab Malakar,

26th June 2015

Good Morning Dwarkesh,
Bandra Kurla Complex (BKC), Dholera, Shendra-Bidkin (Aurangabad) etc. are some of the important locality which were announced to be the Smart Cities in West India. the central government is currently focusing on creating smart cities across the country highlighting various strengths of a city such as heritage, industries and universities among others.

Ketalpujara, Mumbai

26th June 2015

Comment

Right Ketal,
If i am not wrong, Bandra Kurla Complex (BKC) which was announced in September 2014. is one of the fastest growing central business districts (CBD) in Mumbai. While Nariman Point, Colaba and Churchgate were the traditional CBDs in Mumbai, BKC has came forward as a modern CBD. MMRDA, the development authority in Mumbai Metropolitan Region is planning to transform BKC into a smart city in order to attract more investor interests and premium pricing for its remaining land bank.

Santosh TR,

26th June 2015

Thanks Santosh,
Which is the most common housing units available here and the average property value per square foot? Which are the well known developers in the surrounding areas?

Ketalpujara, Mumbai

26th June 2015

@ketal,
The area witnesses high demand for housing by people working in the CBD. The most common housing units available here are 1/2BHK apartments. The average property values in the surrounding areas are about Rs 15200-40700/sq-ft. Some of the well-known developers in the surrounding areas are Kalpataru, Rustomjee Developers, Oriana, Raheja Realty and Sunteck Group etc.

Santosh TR,

26th June 2015