'Developers Have Significant Opportunities To Contribute To Smart Cities Mission'

Prime Minister Narendra Modi's government at the Centre is all set to build 100 smart cities in India. The government and various stakeholders are in the process of consultations and deliberations on the development model for these cities.

To understand more about the potential of such projects to transform Indian cities, PropGuide spoke to Sangeeta Prasad, Chief Executive Officer, Integrated Business City and Industrial Cluster at Mahindra Lifespace Developers Ltd.

Prasad opined that experience and knowledge of private developers can contribute heavily to the development of the Smart Cities Mission.

Mahindra World City, part of the Mahindra Lifespace Developers Limited and the urban infrastructure arm of the $16.5-billion Mahindra Group, has pioneered sustainable urban centres in India. Mahindra World Cities spanning 4,550 acres in Chennai and Jaipur are successful models in creating the best residential and social infrastructure in a self-fulfilling ecosystem and attracting global investments.

Excerpts from an interview:

PropGuide: How do you assess India's progress in building 100 smart cities?

Prasad: The Ministry of Urban Development has already shortlisted 98 cities for stage I of the Smart Cities Mission. The short-listed cities, aided by consultants/agencies, are at various stages of development as far as their Smart City plans are concerned. The Smart Cities Mission has ensured that citizens will be the focus in building sustainable urban infrastructure, thus catalysing economic growth by enhancing human productivity, innovation and overall welfare. We at Mahindra World City are aligned to the government's mandate to enable sustainable development and create smart outcomes for citizens.

As we approach the next stage of the initiative, which comprises of the selection of 20 cities in the first lot this year and 40 cities each year over the next two years, we hope to see the vision progress towards a sustainable implementation driven by pan-city development, retrofitting, redevelopment and greenfield development (as each case may be). We see the possibilities for a more even and inclusive growth across India's cities, which might ease the infrastructural pressures on major metros while facilitating the development of multiple 'smart city' alternatives to foster nationwide social and economic growth.

PropGuide: How can private developers contribute to this mission?

Prasad: The Smart Cities Mission focuses on augmenting core infrastructure, enhancing the quality of life of citizens, providing a sustainable environment via application of smart solutions, which will collectively drive economic growth. Private developers can leverage their experience and proven knowledge to contribute to the development of India's Smart Cities Mission. Contribution can be through multiple areas of expertise – infrastructure planning, usage of technologies and materials used in construction process, building design and architecture, and environment-friendly practices in construction and other aspects of city creation.

For instance, for Mahindra World City Jaipur, we collaborated with Tech Mahindra to design information communication technology-based (ICT-based) smart management solutions as a pilot project. The smart blueprint, in such cases, further enhances the efficiency of street lighting, waste management, security and surveillance, building energy management, parking, metering infrastructure and water management.

PropGuide: Given your experience and expertise in building sustainable, integrated business cities, what are the things that need to be taken care of to make these cities smart, sustainable and inclusive?

Prasad: As per the Urban Development Ministry, a sustainable city is based on three key pillars – 1) quality of life, 2) employment, and 3) investment opportunities. Every urban ecosystem must begin with a strong vision that clearly defines its identity and accentuates its purpose. With vision in place, the natural progression is towards the identification of tenets and finally, once vision, focus and the way forward are determined, it is important to delve into the development of economic, physical, institutional and social infrastructure, while ensuring active citizen participation in the development process at all times.

At Mahindra World City (MWC), our integrated, sustainable business city development has been based on the premise of 3-Ls: 'Livelihood, Living and Life'.

• Livelihood – Our initial focus is to enable wealth creation through industrial setup, which in turn generates revenue, exports, and employment, thus providing for a sound economic foundation.
• Living - Once a critical mass of industries and other commercial catchments are set up in the MWC, the focus expands to enhance the 'Living' quotient with the development of residential and social infrastructure.
• Life - Once both the 'Livelihood' and 'Living' aspects are achieved, the impetus shifts towards augmenting quality of 'Life' through social events, designed to strengthen the feel of 'Community' while developing the World City's cultural and social ethos. 

For instance, Mahindra World City Chennai organises sports events such as marathons and inter-company cricket tournaments, music festivals, arts and dance performances, quizzing events, etc.

(Mahindra Lifespace Developers Ltd)

We also focus on citizen involvement in growth and strategy development and have designed and implemented various citizen partnership initiatives to mutually shape and drive the development journey. Recognising that true sustainability calls for the optimal usage of scarce resources, we have integrated resource efficiency into the Mahindra World Cities right from the early design and development stages, thereby resulting in the much-needed conservation of water, energy and other natural resources.

PropGuide: Mahindra World City has got some of the best global clients. What is the range of investments we can expect in the new smart cities?

Prasad: Our endeavour is to attract the best corporates across the globe and within the country, who will contribute not only to exports but also to indigenous consumption. Each client has specific growth plans, which contribute to the overall growth of our Mahindra World Cities.

PropGuide: Given Mahindra World City's PPP experience, could you please tell us whether there are right kind of synergies between the government and private stakeholders in the Smart Cities project?

Prasad: We are the first company to build India's integrated business city in public private partnership (PPP) with the state government of Tamil Nadu. With the support of the government, we have been able to focus on our core of infrastructure planning and development while building a long term vision for sustainable community living. The PPP tie-up with the state government has enabled us to obtain approvals and clearances on time. The state government has also provided us guidance and support on the client acquisition process besides contributing to the overall vision of Mahindra World City.

PropGuide: Please tell us about Mahindra Lifespaces' new projects?

Prasad: This year, we entered into a joint venture with Sumitomo Corporation to develop a new industrial park in Chennai focused on industrial cluster development. In the residential space, we entered the city of Bengaluru with the launch of our premium residential project, Windchimes, on Banerghatta Road in June 2015.

PropGuide: How do you assess the real estate sector in India today?

The government is strongly focused on India's urbanisation needs with long-term initiatives such as the Smart Cities Mission and Housing For All. Both schemes will ensure long term growth trajectory for the country. We believe that there will be significant opportunities to contribute to overall city creation in the long run. The 'Livelihood, Living and Life' concept embraces the Smart Cities concept where the bedrock of city creation is the creation of infrastructure, employment opportunities, homes and a social ecosystem layered with technology to enable long term sustainable development.

In residential real estate, from the highs of previous years, we have witnessed a shift in consumer demand and preferences - with more end users and fewer investors. Consumers are taking longer to make decisions, preferring to choose developers who have a good track record of delivering projects and fulfilling the promises made. The recently announced rate cuts by the Reserve Bank of India (RBI) could pave the way for the rejuvenation of the sector for mid to long-term.