Private sector involvement in smart cities
The urban population in the world has risen to the 54% of the overall world population and till 2050 it is set to be rising over the 66%. India holds the words with 1.2 billion population and out of that only 32% of the population lives in the urban areas. In the future, India is expected to be a significant contributor in the world’s urban population index and will hold the 50% of India’s total population which is 824 million in urban cities. To cater the need of India’s growing urban population, India needs to rejuvenate its cities. This will help to address the increasing ambition of urban population and attract the necessary investment which will fuel the development and growth of India’s urban cities.
The growth in the urban service delivery and infrastructure is not moving at the same pace as growth in the urban population in India. The demand and supply gap in India’s urban cities has been rising and it is unable to face the challenges imposed in areas such as waste management, water, mobility, energy, healthcare, safety, and education. This situation could be worse if timely action is not been taken. This could affect the overall growth of India, which makes this situation is important to be addressed with the sense of urgency.
A number of initiatives had been started by the government of India to fuel the growth of urban development in India which includes the projects like AMRUT, JNNURM, and the most ambitious Smart Cities. These initiatives by the government open the gates for local and global industries to participate in India’s urban development in the sectors housing, utilities, telecommunications, mobility, healthcare, education, and telecommunication. To finance the above projects India will need the massive funding which can be generated through the public-private partnership. This will help in gaining not only finance but will also assist India in technology, transparency, and better governance. Private sector support enables the development of inadequate and crippling infrastructure and will address the capability as well as capacity issues faced by the urban local body and state government.
To assist the development process, the government already has sent the encouraging messages to the private sector by announcing the different programs and addressing the government business policies. The private sector faces a number of challenges for investing in the public-private partnership, so for building a better relationship with the private players’ government needs to address the challenges faced by the private sector and make the path of partnership smoother.