Smart Cities in India—Business Opportunities in Amaravati City, 2017

The greenfield development offers substantial opportunity for OEMs and Project Implementation agencies

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Urbanization in India is expected to reach 40% with over 600 million population living in urban areas contributing to 70% of GDP by 2030.
To meet the burgeoning infrastructure needs, the GoI launched the 100 Smart City Mission during April 2015 which has been planned to be implemented through area based approaches.

Each city will get Central assistance to the tune of INR 500 Cr. for 5 years. The remaining money has to be raised by the Smart city corporations.
The Smart city proposals shall be implemented through Special Purpose Vehicle (SPVs) - incorporated under the Companies Act, 2013 at the city-level.

The SPV would have the State/UT and the ULB as the promoters having 50:50 equity shareholding. The private sector could be considered for taking equity stake in the SPV.

The Andhra Pradesh Re-organization Act, 2014 (central Act 6 of 2014) which came into force on 2nd June 2014 provided for the reorganization of existing State of Andhra Pradesh.

The Central Government assisted the state in identifying Amaravati – north of Vijayawada - for new capital development.
The state Government constituted Capital Region Development Authority (CRDA) as the nodal agency for development of the new capital.

Table of Contents

Smart Cities in India—Business Opportunities in Amaravati City, 2017Scope & LimitationsScope & LimitationsExecutive SummaryNewly carved AP state identified Amaravati as capital city location; CRDA appointed nodal agency for greenfield city developmentThe greenfield development in 217 Sq. Km offers substantial opportunity for OEM and Project Implementation agencies Smart Cities in IndiaIn 2030, India’s cities will be home to 600 Mn people, presenting immense opportunities and challengesGlobally, city governments are focusing on development of Smart city technologies to tackle urban challengesThe GoI rolled out the Smart City Mission in 2015 to partly address urbanization needsMinistry of Urban Development has charted a roadmap to boost implementation of 100 Smart City projectsThe Ministry has devised a financing model to boost implementation of the 100 SMART cities projectsSmart Cities Nominated in IndiaAmaravati Smart CityPlanned as a Greenfield capital city for the newly carved Andhra Pradesh state with overall investment of INR 43,707 Cr. The state Government plans to raise fund and support through the following international collaborations – (1/2)Governance structure adopted for City developedCRDA1, the execution arm for city development has been constituted as the nodal agency for the greenfield city developmentCRDA submitted the Smart city proposal with an investment of INR 1,820 Cr. during round 3 (March 2017) of the Smart City ChallengeThe project being greenfield in nature, smart city projects have been scheduled be completed in medium to long termOpportunity AnalysisProject-wise investment identified in the Amaravati City Development PlanSector wise opportunities in Amaravati city development For evaluating opportunities proposed in the City Development Plan of Amaravati for businesses under three categories: (1/2)For evaluating the opportunities proposed in the City Development Plan of Amaravati for businesses under three categories: (2/2)Amaravati city development# offers high value opportunities (>INR 100 Cr.) to OEMs and project implementation agenciesGo-to-Market RecommendationsGo-to-market approaches for private players to participate in Smart city projects in India have been identified……and evaluation of the projects has been carried out to determine the go-to-market approachEase and Priority of implementation drive direct procurement contracts Amaravati greenfield project is in nascent stage of development; Smart city project is still in the pre-development stage AppendixParameters considered for evaluation of opportunitiesParameters considered for evaluation of opportunitiesGlossaryAnnexure: Our ServicesMaximize opportunities from existing products and markets; systematically explore new products, markets, including inorganic OpportunitiesOur Growth Consulting CanvasLegal Disclaimer




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