Industry Agenda The Future of Urban Development & Services ...

Industry Agenda

The Future of Urban Development & ServicesUrban Development RoundtableJune 2015

© WORLD ECONOMIC FORUM, 2015 – All rights reserved.

No part of this publication may be reproduced ortransmitted in any form or by any means, includingphotocopying and recording, or by any informationstorage and retrieval system.

REF 300715

3The Future of Urban Development & Services: Urban Development Roundtable

Introduction Synopsis

The World Economic Forum’s Future of Urban Development & Services (FUDS) initiative held a roundtable on urban development in New Delhi on 16 June 2015. Representatives of the government, the Forum’s Industry Partners and guests from industry and civil society discussed urbanization in India and looked to identify areas of collaboration in light of the government’s aim to develop smart cities across the country.

At the roundtable, an initial presentation of the FUDS initiative included an introduction to its work globally and in India, as well as the findings of The Future of Urban Development & Services: Urban Development Recommendations for the Government of India, published in April 2015. This report highlighted an opportunity to assist the Government of India (GoI) on two programmes: delivering “100 Smart Cities” as well as the cities of the Atal Mission for Rejuvenation and Urban Transformation (AMRUT).

The GoI’s aim with the two programmes is to drive economic growth holistically and improve the quality of life by enabling local development and harnessing technology as a means to create smart approaches to urbanization. The roundtable centred on how smart and innovative information and communications technology (ICT), as well as physical, economic and social infrastructure, can accelerate smart and sustainable urbanization. It also highlighted the need to accelerate reforms through public-private collaboration.

The main challenges and opportunities in developing smart cities, across domains such as water, sanitation, energy, mobility, infrastructure (physical, economic and social), finance and governance, were covered in the breakout groups. Ideas to fast-track development were proposed.

01

02

The Future of Urban Development & Services initiative: its perspective on urbanization

The Forum showcased its work in supporting cities to tackle the challenges of urbanization. The Forum adopts a consultative approach by bringing together government representatives and business leaders across sectors such as infrastructure, urban development, mobility, ICT, energy and healthcare. The aim is to identify cities and assist them in addressing challenges, and to enable them to transition towards a smart, more sustainable future by adopting new models of urban development.

The initiative’s Steering and Advisory Board worked with leaders from national and city government in the Chinese cities of Tianjin, Dalian and Zhangjiakou in 2012-2014 to address the pressing urban development challenges facing those cities. In 2015, the initiative has a global and regional focus. At the global level, it will assess the opportunity presented by the urban services industry, the barriers to its success and the means to accelerate the delivery of smart and innovative urban services. At the regional level, the aim is to assist the GoI in delivering its planned 100 smart cities and 500 AMRUT cities.

To start the process, the Forum produced The Future of Urban Development Initiative: Urban Development Recommendations for the Government of India, a macro-level report that included the following recommendations:

– The integration of spatial planning at national, state and city levels

– The creation of a stable policy framework for private investment

– The development of institutions to stimulate capacity building

The initiative could work in specific Indian states and assist them in developing tools and identifying reforms needed to accelerate the delivery of smart and AMRUT cities. As a next step, the initiative could become involved in an important smart city pilot project, which could then be scaled up and replicated across the country to transform urbanization.

01: Ajit Gulabchand, Chairman and Managing Director, Hindustan Construction Company, India; and Honourable Minister M. Venkaiah Naidu, Minister of Urban Development, Housing and Urban Poverty Alleviation and Parliamentary Affairs of India, at the roundtable.02: Honourable Minister M. Venkaiah Naidu, Minister of Urban Development, Housing and Urban Poverty Alleviation and Parliamentary Affairs of India at the roundtable.

4 The Future of Urban Development & Services: Urban Development Roundtable

The Indian government’s response to accelerating urbanization: smart city and AMRUT programmes

M. Venkaiah Naidu, Minister of Urban Development, Housing and Urban Poverty Alleviation and Parliamentary Affairs of India, presented the government’s vision for addressing the challenges and opportunities of rapid urbanization in India.

– Two urban rejuvenation programmes are set to revitalize the urban infrastructure and quality of life in Indian cities.

– Globalization has triggered greater linkages between India and the rest of the world. Global partnerships will play a crucial role in the country’s urbanization process. The wave of urbanization will not only have domestic implications but will also create impact outside of India.

– Indian cities are the backbone of the country’s global trade. The government will focus on effective change management in urban areas to achieve and sustain economic growth.

– According to the GoI, smart cities are those providing core infrastructure and enabling a clean and sustainable environment, while providing a decent quality of life and promoting the adoption of smart solutions for effective delivery of services.

– The GoI will develop 100 smart cities via a mixed strategy of improving existing cities through intensive intervention (retrofitting), redeveloping non-amenable areas through adoption of new layouts, taking up large pan-city interventions and developing greenfield cities.

– The other 500 cities will be developed under the AMRUT programme.

– Through these initiatives, the GoI will address the needs of the urban poor and focus on developing public transport to reduce societal inequalities and promote inclusive urban development and mobility.

– In addition to considering urbanization in India under the Smart Cities programme, the global investor community must also take into account the Digital India, Make in India, Skill India and Clean India programmes to create a holistic vision.

– The following challenges must be addressed as India shapes the transformation of its cities: – Effective planning for urbanization and zoning – Effective functioning of property markets – Access to serviced land and affordable housing – Access to mass transit systems and road networks – Division of power and financial autonomy between

urban local bodies (ULBs) – Creation of a favourable environment for starting,

operating and growing a business – Resource mobilization and citizen participation

– The GoI acknowledges and appreciates the recommendations made by the FUDS report.

– The GoI will take a bottom-up approach for both of the urban development programmes by engaging states and ULBs right from the conceptualization stage. The aim is to create a sense of involvement and ownership for all stakeholders, including citizens. The states will thus get flexibility in designing and implementing new schemes, which are expected to make cities more liveable, inclusive and sustainable.

– The 100 smart cities to be developed will be selected through a two-stage city challenge competition. The central, state and local governments will be allocated $30 billion over the next five years to implement the programme. However, the private sector will need to invest a substantial share through public-private partnership (PPP) models. This offers a huge opportunity for domestic and foreign investors to participate in India’s urban development.

The infrastructure and urban development industry’s perspectiveon urbanization

The Government of India has identified four infrastructural pillars for accelerating smart urban development: physical, social, economic and institutional. As perspectives on the institutional (government) pillar were already provided, the other three were covered along with technology, which cuts across all pillars.

01

01: Anil Menon, President, Smart+Connected Communities and Deputy Chief Globalization Officer, Cisco Systems, India; Sunil Mathur, Managing Director and Chief Executive Officer, Siemens India; Honourable Minister M. Venkaiah Naidu, Minister of Urban Development, Housing and Urban Poverty Alleviation and Parliamentary Affairs of India; and Ajit Gulabchand, Chairman and Managing Director, Hindustan Construction Company during the roundtable.


Technological infrastructure

– Digital technologies have been the focal point of discussion regarding smart cities. However, the focus should also be on smart governance, policy reforms and smart regulations, which can enable PPPs and the development of common and open standards – for example in mobility, sanitation and utilities in an Indian context – to achieve economic development goals as well as social and environmental sustainability.

– India could contribute substantially to the emerging urban services industry, in which cities outsource the operation and management of urban functions, such as utilities and both public and road transportation. Globally, the market for urban services is valued at about $3 trillion, of which India could aspire to capture at least 10%.

– Entrepreneurs can invent new business models and leverage ideas from different city verticals (i.e. sectors or services) to enhance efficiencies and share best practices in managing urban infrastructure.

Physical infrastructure

– Integrated physical infrastructure planning is needed, which could include mobility, land use, utilities and energy, keeping in mind the present and future requirements of urban dwellers. Such integrated planning helps to improve a city’s energy efficiency and its quality of life.

– The civic planning body will have to factor in the particular requirements and customize solutions for each city selected to be developed.

– ICT will be an important lever for cities and will enable them to leapfrog several stages of development. When adopting technology, however, process re-engineering should be provided as support to help streamline the lengthy process of securing permits.

Social infrastructure

– Urbanization generally drives city dwellers out of poverty. But in the Indian context, poverty and informal settlements are a major challenge. Urban regulations will need to be adapted to address sustainable social and economic growth.

– Rapid urbanization is exacerbating environmental pollution, which is one of the biggest problems facing Indian cities. City governments must review building codes and mobility plans to stem pollution and improve the quality of life.

01

01: Onno Ruhl, Country Director for India, World Bank; Neel Ratan, Senior Partner & Management Consultant Leader, PwC India; Anil Menon, President+Smart+Connected Communities and Deputy Chief Globalization Officer, Cisco Systems, India; Sunil Mathur; Honourable Minister M. Venkaiah Naidu, Minister of Urban Development, Housing and Urban Poverty Alleviation and Parliamentary Affairs of India; and Ajit Gulabchand, Chairman and Managing Director, Hindustan Construction Companyd during the roundtable.

– To accelerate reforms and implement the Smart Cities programme, India needs stronger city government and must implement the 74th constitutional amendment as soon as possible. The latter would provide a framework for devolving power from state to local governments.

Economic infrastructure

– Reforms and policies need to be aligned with the national focus on ease of doing business, manufacturing, skill development and adopting technology. Creating bankable projects at the city level is also required.

– When reforming economic infrastructure, city leaders must remain cognizant of the sharing and circular economies, both of which have the potential to transform the way urban dwellers consume services and products. City leaders will also have to plan for economic policies that cater to the city’s de facto boundaries, which are far beyond its formal ones.

– Balanced markets and resources are needed when developing a greenfield city.

– The concept of the “whitefield” city, which refers to developing unutilized or underutilized land, should be promoted.


Participants defined smart cities in the Indian context,identified the challenges of developing such cities andmade recommendations for further developing urbaninfrastructure, which could help India leapfrog several stages of development.

Breakout Discussions

01

03

02

Smart water and sanitation

Participants agreed that the lack of bankable PPP projects,the lack of trust between private investors and thegovernment, and the mindset of urban dwellers who do not want to pay for water and sanitation are the key challengesthat must be addressed to transform water and sanitationservice in urban India.

Smart energy infrastructure

The energy planning process was considered to be an integral part of a smart city development programme. The focus for both citizens and government must be on saving energy, because energy saved is energy generated. In order to build sustainable cities, the government should introduce the parameter of gross domestic product per unit of energy consumed, while determining funds awarded to the cities competing in the smart cities challenge. A differential tariff structure could be adopted to evenly distribute consumption patterns.

Smart physical infrastructure

City masterplanning should include a citizen consultation exercise, to capture their aspirations in the planning process and ensure the adoption of citizen centric sustainable development.

01: Participants at the roundtable02: Participants at the water and sanitation infrastructure breakout group, including Nigel Austin, Managing Director, Arup Engineering, Design & Consulting Services, India (Standing).03: Participants at the smart physical infrastructure breakout group, including Venugopal A. N., Managing Director, RMZ, India (standing).


01

02

01: Participants at the smart economic infrastructure breakout group, including Ron Slangen, Urban Development Specialist, Asian Development Bank INRM, India (standing).02: Participants at the roundtable

Smart economic infrastructure

Smart cities should provide meaningful jobs to fulfil their dwellers’ aspirations. The enablers of an improved economic environment are: reforms to facilitate the ease of doing business, reforms to the permitting process, creation of a platform of collaboration between the public and private sectors, and a more structured planning process. Each city can be developed based on its distinctive economic character, and innovation districts can be established to ease the exchange of ideas and promote an entrepreneurial culture. Cities can set up an economic advisory board made up of the government, private sector, civil society and academics to address the ease of doing business and recommend reforms.

Smart governance and finance

The transparency of projects needs to be increased, along with the speed of their execution. The same can be achieved by leveraging technology and capacity building in ULBs. An integrated city master plan, a list of a city’s bankable projects and the identification of risks will encourage investors to participate in PPP projects.

Smart transportation

A mobility master plan can be prepared for a horizon of about 20 years, with adequate transition plans to support public transport. Cities may apply a congestion tax or promote sharing of vehicles/carpooling to reduce congestion on roads. To make implementation easier, a single city-level agency can execute an integrated city master plan, which factors in mobility. Moreover, the master plan should consider developing clusters within the city to reduce the need for transportation. Alternate and clean modes of transportation, such as cycling and walking, must be promoted to decrease the dependency on fossil fuels and reduce pollution.

Smart social infrastructure

Technology can be used to improve healthcare services. Streets play an important role in social infrastructure, and master plans must include public space.

Smart ICT

A smart city needs to have an integrated digital master plan which would account for standards across city verticals, defined process and systems. Such a plan would need to strongly encourage residents to adopt technology, and will need to be inclusive, factoring in all sections of society.


Next Steps

The Forum will begin its engagement with specific states in India. Ideally, the process will include advising on specific reforms at the state and city levels to accelerate the delivery of smart cities.

The World Economic Forum’s National Strategy Day on India in New Delhi, 3-4 November 2015, will convene a discussion on smart cities and AMRUT cities.


List of Participants

Keynote Speaker

M. Venkaiah Naidu Minister of Urban Development, Housing and Urban Poverty Alleviation and Parliamentary Affairs of India

Chair

Ajit Gulabchand Chairman and Managing Director

Hindustan Construction Company Ltd India

Discussion Leaders

Anil Menon President, Smart+Connected Communities; Deputy Chief Globalization Officer

Cisco Systems Inc. India

Neel Ratan Senior Partner & Management Consulting Leader, PwC India

PwC India

Sunil Mathur Managing Director and Chief Executive Officer

Siemens Ltd India

Onno Ruhl Country Director World Bank India

Table Hosts and Rapporteurs

Nigel Austin Managing Director Arup Engineering Design and Consulting Services India Private Ltd

India

Ron Slangen Urban Development Specialist Asian Development Bank INRM

India

Ravichandran Purushothaman

President, Danfoss India Danfoss A/S Denmark

Arjun Dhawan President Hindustan Construction Company Ltd

India

Sandeep Sibal Vice-President, Business Development; Head of Region

Qualcomm India Pvt. Ltd India

Venugopal A. N. Managing Director, Development RMZ Corp. India

Ratiranjan Mandal Chief Executive Officer SREI Infrastructure Finance Limited

India

Alain Grimard Senior Human Settlements Officer United Nations Human Settlements Programme (UN-HABITAT)

India

Participants

Bazmi Husain Country Manager and Managing Director

ABB Ltd India

Glen Reccani Managing Director Acciona Energy India Private Limited

India

Srinivas Chary Dean of Research and Management Studies

Administrative Staff College of India (ASCI)

India


Partha Purkayastha Managing Director Amec Foster Wheeler India Private Ltd

India

Ponugupati Solomon Herme Joint Director Andhra Pradesh Electricity Regulatory Commission

India

Tallulah D’Silva Architect and Partner architecture R/T India

B. Prasad Rao Chairman Bharat Heavy Electricals Ltd (BHEL)

India

Tejpreet Singh Chopra President and Chief Executive Officer Bharat Light and Power India

Vikram Desai Director Canada Pension Plan Investment Board (India)

India

Devyani Rana Director, Global Government and Corporate Affairs

Caterpillar Inc. India

Debasis Gupta General Manager CESC Limited India

Amitabh Shrivastava Director, Delhi Office Confederation of Indian Industry (CII)

India

Nagahari Krishna Director, Strategic Initiatives and Industry Affairs

Danfoss Industries Pvt. Ltd India

Carlalberto Guglielminotti Chief Executive Officer Electro Power Systems SpA Italy

Norberto Cuenca Head, Business Development for India Enel Green Power Italy

Nathan Andrew Nelson Chief Representative, India Export Development Canada (EDC)

India

Sumeet Aggarwal General Manager; Head, Business Development and Strategic Alliances

Fortis Healthcare Limited India

Karuna Gopal President Foundation for Futuristic Cities

India

Mahinder Nath Executive Vice-President and Head, Business, South Asia

GDF Suez India

Ipsita Dasgupta Chief Commercial Officer GE India India

Sivaram Tadepalli Chief Information Officer, Urban Industries

GMR Group India

G. V. Keshav Reddy Business Development GVK Power & Infrastructure Limited

India

G. V. Sanjay Reddy Vice-Chairman GVK Power & Infrastructure Limited

India

Rajan Samuel Managing Director Habitat for Humanity India (HFH India)

India

Shom Hinduja President, Alternative Energy and Sustainability Initiatives

Hinduja Group of Companies (India)

India

Rolita Patil Lead, Strategic Initiatives Corporate Affairs & World Economic Forum DRP

Hindustan Construction Company Ltd

India

Kojin Nakakita Managing Director Hitachi India Pvt. Ltd India

Pilar Gonzalez Fernandez International Affairs, Chairman’s Office Iberdrola Spain

Alpna Jain Director, Project Finance IDFC Ltd India


Jasjeet Hanjrah Senior Consultant IGATE India

CM Khurana Chief General Manager India Infrastructure Finance Co. Ltd (IIFCL)

India

Vishnu Agarwal President Indian Electrical and Electronics Manufacturers Association

India

Sudhir Krishna Chairman, Bureau of Indian Standards Committee on Defining Standards for Smart Cities; Former Secretary of the Ministry of Urban Development

Bureau of Indian Standards India

Jyoti K. Parikh Executive Director Integrated Research and Action for Development (IRADe)

India

Neeraj Gupta Senior Investment Officer International Finance Corporation (IFC)

New Delhi

Sreevatsan Sudhanvan Bangalore

President, Urban Planning and Development

Ispat Corp. Pvt. Ltd India

Anup Bhargava President Jindal Steel and Power Limited

India

Shubhranshu Pani Managing Director, Infrastructure & Urban Development

Jones Lang LaSalle Property Consultants (India) Pvt. Ltd

India

Ajay Khanna Chief, Strategic and Public Affairs Jubilant Bhartia Group India

Shabbir Kanchwala Senior Vice-President K Raheja Corp. India

Meraj Ali Choudhari DGM, Business Development & Marketing

Mahindra World City Developers Limited

India

Sunil Dubey India Ambassador Metropolis Spain

Satya Sheel Managing Director Metrovalley India

Neeraj Mandloi Joint Secretary Ministry of Urban Development

India

Jagan Shah Director National Institute of Urban Affairs (NIUA)

India

Ambuj Chaturvedi Executive Director Overseas Infrastructure Alliance (India) Pvt. Ltd (OIAPL)

India

Jaideep Bansal Operations Manager Procter & Gamble Hygiene and Health Care Ltd

India

Shantanu Karkun President and Chief Executive Officer, Building & Infrastructure

Punj Lloyd Ltd India

Surojit Bose Director, Sustainability PwC India

Vijay Iyer Managing Director, India Rio Tinto Plc India

Ravi Gadepalli Programme Manager, Transport Shakti Sustainable Energy Foundation

India

Subodh Kumar Jain Managing Director Siddho Mal Group India

Deepak Goray Head, City Account Management Siemens Ltd India


Ramya Rajagopalan Head, Corporate Communications Siemens Ltd India

Jagadish Nangineni Regional Director, Delhi Sobha Limited India

Govind Subbanna General Manager State Bank of India India

Ragnvald Naero Senior Vice-President and Director, Business Development

Statkraft AS Norway

Siddharth Hande Director Supportive Cities India

Emmanuel Guérin Associate Director Sustainable Development Solutions Network

France

Ishwar Hegde Chief Economist Suzlon Energy Limited India

Cristina Rumbaitis del Rio Associate Director The Rockefeller Foundation USA

Vineet Agarwal Managing Director Transport Corporation of India Ltd

India

Amit Jain Chief Executive Officer, India Uber USA

Shomik Mehndiratta Director, Policy Development Asia Pacific

Uber USA

Aashish Kamat Chief Executive Officer, India UBS AG India

Marina Walter Deputy Country Director United Nations Development Programme (UNDP)

New Delhi

Kulwant Singh Regional Advisor, Asia and the Pacific, Urban Basic Services Branch

United Nations Human Settlements Programme (UN-HABITAT)

Kenya

Sanjay Mathur Director and Representative United Nations Office for Project Services (UNOPS)

Copenhagen

Gaurang Pandya President, UTC Building and Industrial Systems, India

United Technologies Corporation (UTC)

India

Chetan Vaidya Director, School of Planning and Architecture

University of Delhi India

Amar Variawa Director and Head, Public Affairs India Vestas Wind Technology Private Limited

India

Raghunath Mahapatra Head, Strategy Welspun Energy Pvt. Ltd India

Vineet Mittal Managing Director Welspun Energy Pvt. Ltd India

Joe Phelan Director, WBCSD India World Business Council for Sustainable Development (WBCSD)

Switzerland

Alex Winchester Sector Director, Property WS Atkins plc India

Alice Charles Head of Urban Development World Economic Forum

Kavitha Sivadasan Head of India and South Asia, Business Engagement

World Economic Forum

Christoph Sprung Associate Director, India and South Asia World Economic Forum

World Economic Forum91–93 route de la CapiteCH-1223 Cologny/GenevaSwitzerland

Tel.: +41 (0) 22 869 1212Fax: +41 (0) 22 786 2744

[email protected]

The World Economic Forum is a comprehensive and integrated platform to strategically shape global, regional, national and industry agendas. The Forum helps the foremost political, business and other leaders of society to improve the state of the world, serving as an independent and impartial partner and acting as the officially recognized International Institution for Public-Private Cooperation.

Industry Agenda The Future of Urban Development & Services ...

Documents

Transcript of Industry Agenda The Future of Urban Development & Services ...