Opportunities in building Smart Cities in India

This paper details the Smart City opportunity in terms of the total CAPEX vis-à-vis ICT CAPEX and percentage of ICT CAPEX in Total CAPEX basis the smart city proposals submitted by 20 cities.

Smart is a relevant word and has an altogether different interpretation when it comes to the Indian context. The recent proposals of 20 Smart Cities predominantly captures the creation of basic civil infra, security, transport, connectivity and e-governance services, which has nevertheless brought a lot of alacrity and excitement among the people. It is a huge opportunity for the enterprises as well.

The Total CAPEX allocated to Smart cities is ~Rs 50,000 crore of which ~78% is allocated for area-based solution and ~22% is for pan city based solutions.

To elaborate further the total budget of every Smart City is broken into 2 parts – pan city & area based. Here area-based proposal can be for Retrofit area (Min 500 acres), Redevelopment area (Min 50 acres) and Greenfield area (Min 250 acres) and pan city is the proposal to be submitted for the entire city.

Citizens of every city have been consulted before preparing the proposal, and basis the cities’ requirements, solutions have been proposed.

Out of the ~Rs 50,000 crore budget that has been allocated for the 20 cities, the ICT pie which Sterlite can target is 15% of total CAPEX, i.e. ~Rs 7,000 crore. There are a variety of solutions proposed by different cities and for ICT alignments, this paper taps the top cities based on ICT CAPEX which Sterlite can align from future business perspective. This paper also details the scope of work for each city.

For most of the cities, their ICT budget is 100% of the pan city capex, making them very lucrative for a player like Sterlite to participate in the RFP.

Top 10 cities scope has been elaborated in terms of area-based, pan-city and total CAPEX, area-based, pan city and total ICT CAPEX and break-up of solution-wise total ICT budget. Below are the top 10 cities arranged as per their ICT Budgets to enable quick picks as ICT targets:

Here is the city wise break-up scope:

1. Surat

ICT Solution Capex breakup: Area base + Pan city: Rs 820 crore

– Area Based: Smart City System (Advance Grievance Redressal system, Smart waste collection system, Air & water quality Monitoring, Area surveillance network) Rs 25 crore

– Pan City Based: IT-MAC, Automatic Fare collection system, Development of ERP with GIS Platform, SMAC Centre, S-connect card, Connected Surat-FTH Rs 795 crore

For Surat, 100% of the Pan City budget has been allocated to ICT.

2. Bhopal

ICT Solution CAPEX breakup: Area based + Pan city: Rs 798.21 crore

– Area Based: Robust IT connectivity and digitalisation, intelligent traffic management, smart parking, safety of citizens, additional smart applications: Rs 150 crore

– Pan City Based:

• Smart Governance: Ease of doing Business applications, Citizen engagement and grievance module, City level application and smart dashboard, Data Analytics and MIS, City Level GIS, Mobile service delivery, Waste to Energy conversion, GPS based garbage vehicle tracking, Asset and operation management system, RFID tagging of garbage bins, Waste network simulation, GIS based grievance redressal, Geo-fencing of assets Rs 200 crore
• Intelligent street light with scheduling, surveillance and SOS, environment and water level sensors, Wi-Fi, intelligent shopping apps, smart phone detection, interactive digital signage Rs 448.21 crore

Again, in Bhopal, 100% of the Pan City budget has been allocated to ICT (worth Rs 648.21 crore) and this is likely to come as single RFP and so is the area-based opportunity (Rs 150 crore).

3. Indore

ICT Solution Capex breakup: Area based + Pan city: Rs 720.69 crore

– Area Based: Rs 332. 69 crore

• Underground Electrification & Utilities Shifting: Utility ducts, shifting of power & Telecom lines, laying of OFC network, gas network and other utilities Rs 227 crore
• IT Connectivity & IT Enabled Government Services: 100% public Wi-Fi connectivity, common backbone OFC network to integrate with pan-city proposals, command & control center with adequate software/hardware & city dashboard for urban governance and services Rs 42 crore
• Safety & Security: Smart & energy efficient street-lighting including pedestrian area & public open spaces, CCTV for surveillance & traffic monitoring, fire hydrants network Rs 63.69 crore

– Pan-City Based: Rs 388 crore

• Central command & control center with multi-purpose backbone comm. network & city dashboard Rs 118 crore
• Intelligent transport system (ITS) Rs 250 crore
• Intelligent solid waste management Rs 20 crore

Indore too has allotted 100% of Pan City budget to ICT (worth Rs 388 crore) which may come as single RFP. Pure-play area-based ICT opportunity may also come for IT connectivity worth Rs 42 crore and surveillance worth Rs 63.69 crore.

4. Ahmedabad

ICT Solution Capex breakup: Area based + Pan city: Rs 562 crore

– Area Based: Rs 23 crore

• OFC Network Rs 2 crore
• Wifi Hotspots Rs 1 crore
• Intelligent traffic management Rs 6 crore
• Smart Parking Rs 11 crore
• Energy Efficient Street Lighting Rs 2 crore
• Surveillance Cameras Rs 1 crore

– Pan City Based: Rs 539 crore

• Integrated Transit Management Platform (GPS & AVLS, PIS, etc) Rs 90 crore
• Common Card Payment System (Smart Cards, readers, software, etc) Rs 104 crore
• Command & Control Centre + OFC Network connectivity Rs 203 crore
• Surveillance Equipment & Integration, Intelligent Traffic Management Rs 107 crore
• Integration with other services & Real Time Tracking / Monitoring Rs 35 crore

Ahmedabad has already issued its Ahmedabad city which has similar scope as that of Pan city based proposal.

5. Davangere

ICT Solution Capex breakup: Area based + Pan city: Rs 548.75 crore

– Area Based: Rs 50.96 crore

• Underground Utility Corridor of 59 Km:All utilities like electric wires, OFC Cables, telephone lines, water lines, etc to be laid: Rs 50.96 crore

– Pan City Based: 497.79 crore

• ICT & E-Governance: GIS map to enable interactive government to citizen communication, one city one website & app – interlinking all government departments. One City One Number – An IVRS based call centre backed 4-digit unique number for citizens to access and communicate with any Government Official gets required information, register and track complaints Rs 38.44 crore
• ICT based Mobility Plan & Urban Transport Facility Rs 459.35 crore

In Davangere, 100% of the Pan City budget has been allocated to ICT worth Rs 497.79 crore and this may come as single RFP.

6. Bhubaneshwar

ICT Solution Capex breakup: Area based + Pan city: Rs 544.4 crore

– Area Based: Rs 235 crore

• Build Basics Sub-Plan – for projects like citizens connect, town center online, one-map Rs 26 crore
• Technology For All Sub-Plan– Rs.209 Cr for City Wi-Fi Project, Smart metering and Digital Literacy: Rs 209 crore

– Pan City Based: Intelligent City Operation and Management Centre Rs 442 crore: Capex is 70% (Rs 309.40 crore)

• Traffic Management Rs 215 crore
• Parking management Rs 16 crore
• Bus service operations Rs 72 crore
• Common payment card Rs 25 crore
• Emergency response & City incidence management Rs 30 crore
• Command control center Rs 84 crore

Bhubaneshwar has allotted 100% of its Pan City Capex for ICT (Rs 309.40 crore) and this may come as single RFP. Another big single opportunity here is Area-based budget for technology (Rs 209 crore).

7. Belagavi

ICT Solution Capex breakup: Area based + Pan city: Rs 537.6 crore

– Pan City Based: Rs 537.6 crore

1. E-governance and IT enablement Rs 173.5 crore
2. Traffic, Transport, Mobility and Intelligent Traffic Systems Rs 364.1 crore

Belagavi may have two different big-ticket RFQ opportunities for Pan city proposal for E-governance (Rs 173 crore) and ITMS (Rs 364 crore).

8. Pune

ICT Solution Capex breakup: Area based + Pan city: Rs 527 crore

– Area based: Rs 255 crore

• ICT enabled bus stops Rs 27 crore
• Citizen services, e-governance, security Rs 228 crore
  • CCTVs Rs 27 crore
  • IT connectivity Rs 146 crore
  • Digital Literacy Rs 2 crore
  • Smart Parking Rs 50 crore
  • Fire stations Rs 3 crore

– Pan City Based:

• Pan city Transportation Rs 272 crore
  • Adaptive Traffic Management Systems Rs 123 crore
  • Bus system ITMS Rs 70 crore
  • Command Control Center Rs 42 crore
  • Smart Parking initiatives Rs 15 crore
  • Intelligent road management Rs 3 crore
  • Traffic Modeling (Citilogik) Rs 18 crore
  • E-challan Rs 1 crore

Pune is expected to come out with a single RFP for Area-based opportunity from Citizen Services & E-governance perspective (Rs 228 crore). For Pan city again there can be single RFP for Pan city transportation solution (Rs 272 crore)

9. Chennai

ICT Solution Capex breakup: Area based + Pan city: Rs 508 crore

– Area based: Rs 56.44 crore

• Robust IT Connectivity Rs 50.69 crore
• Energy Efficient LED Street Lighting Rs 5.75 crore

– Pan City based: Rs 452.32 crore

• ICT for Non-Motorised Transport: Includes Cycle sharing system to ensure last mile connectivity, parking management to effectively increase the available effective carriage way and ease traffic congestion, LED street lighting and city surveillance system to ensure safety of pedestrians and Intelligent traffic management system to integrate the public transport Rs 452.32 crore.

In Chennai, Area based proposal for Robust IT connectivity RFP is expected to be worth Rs 50.69 crore. The Pan city ICT opportunity for non-motorised transport order is likely to be worth Rs 452.32 crore.

10. Jabalpur

ICT Solution Capex breakup: Area based + Pan city: Rs 324.7 crore

– Area based: Rs 121.32 crore

• Robust IT Connectivity Rs 44.96 crore
• Safety & Security Rs 76.36 crore

– Pan City based: Rs 203.38 crore

• RFID components including OFC cabling Rs 169.57 crore
• Vehicle tracking and monitoring system Rs 13.76 crore
• Central command and control Center Rs 3 crore
• Other misc. components including IEC campaigns Rs 17.05 crore