Building Integrated, Inclusive and Innovative Cities of Tomorrow!

Transcription

1 Building Integrated, Inclusive and Innovative Cities of Tomorrow!

2 Contents The Concept of a Smart City Top 10 Smart Cities in the World Key Pillars of Smart Cities Welcome to Essel Group Essel s Vision & Model for Smart City Foundations of a Smart City Governance Framework Revenue & Financing Model Essel Infraprojects - India s only Integrated Smart City Developer Smart Utilities - India s first Integrated Utilities Brand Essel Infra & Utilities - National Footprint Massachusetts Institute of Technology Ministry of Urban Development, Government of India International Data Corporation Government Insights In the future, cities will account for nearly 90% of global population growth, 80% of wealth creation, and 60% of total energy consumption. Developing better strategies for the creation of new cities is therefore, a global imperative. The growth story of India shall be written on the canvas of planned urban development and shall be scripted through the instrument of planned mobility. Smart cities are at an inflection point and will need to focus on mission-driven technology solutions.

3 The Concept of a Smart City The greenery of Vienna. The transport of London. The governance of Singapore. The Futuristic Smart Cities of India FUEL S TATION Smart cities like these, and many more, give its citizens the highest quality of life. They seamlessly integrate all infrastructure and utilities, leveraging the tremendous reach of Smart Infra and Integrated Technology. They utilize their resources efficiently and sensibly, ensuring lowest carbon-footprint and high sustainability. Smart cities are the most conspicuous emblems of a nation s progress and development. A Smart City uses innovation and technologies to enhance performance and wellbeing, to reduce costs and resource consumption and to engage more effectively and actively with its citizens. Interest in smart cities is motivated by major challenges, including climate change, economic restructuring, ageing populations and pressures on public finances. India s urban population is growing steadily and contributes 60% to the exchequer. Projections of Urban India state that this contribution would be around 75% within the next 15 years. Hence, cities would be the engines of economic growth for India. Smart Cities or all inclusive cities are built for enhancing the quality of life. The Ministry of Urban Department (MoUD, GoI) defines smart cities to include three pillars of Competitiveness, Sustainability and Quality of life. Cities built on this premise will help transform Indian cities. This transformation would need smart components to be planned in a coherent way. The broad level smart components will include Smart Utilities, Smart Social Ecosystem (includes environment, healthcare, education), Smart Mobility and ICT (security, surveillance and e-governance). Internationally, the number of urban residents is forecast to grow by approximately 60 million every year and the overall number of city dwellers is expected to almost double between 2009 and 2050 from 3.4 billion to 6.4 billion. This state of affairs is leading to increasingly sophisticated technological, societal and economic gains in some of the world s most advanced cities. The time of Smart Cities is Now. 01

4 Top 10 Smart Cities in the world Seattle One of the lowest carbon footprint cities, Seattle encourages greener living through tax rebates. London Has maintained high levels in almost every aspect, and especially stands out in transportation and connectivity. Barcelona Chicago One of the most technologically advanced cities with fast broadband and free Wi-Fi services. Is a pioneer in smart city and lowcarbon solutions. It was among the first in the world to introduce a solar thermal ordinance about a decade ago and has recently launched the LIVE EV project to promote the adoption of EVs and charging infrastructure. 02

5 Hong Kong Has made tremendous investments in its Digital 21 Strategy aimed to create the best e-governance services for its citizens. It has the highest penetration of smart phone in any city. Tokyo Vienna One of greenest cities on the globe with the best standard of life in Europe. Is the highest ranked city from the 2013 ranking, taking first place in human capital and public management. Singapore Uses technology like camera GPS and sensors to prevent traffic congestion and predict jams. Singapore also uses innovative water management system to facilitate effective desalination of water. Berlin Ranks high in innovation, green-ness and quality of life. In collaboration with Vattenfall, BMW and others, Berlin is testing out vehicle-togrid (V2G) technologies in the hopes of creating a virtual power plant from electric vehicles. Seoul With Smart Seoul 2015 strategy, Seoul is aiming to provide the best health care facilities for the disabled. Seoul will be one of the first cities to launch 5G mobile technology. 03

6 Key Pillars of Smart Cities By 2050, about 70% of the population of India would be living in cities. With this population shift, the need of the hour is Smart Cities that would support urban lifestyles. Cities that ensure optimal living conditions and benefits to everyone in the society. Cities, where economic development is sustainable and rationally incremental, by virtue of being based on success-oriented market drivers - such as supply and demand. The accrued benefits would be for its citizens, businesses, the government and the environment. In effect, the components of a Smart City would include enabling a better life, with services, mobility, environment, e-governance, economy, sustainability and inclusiveness as the pillars for success. Key smart sectors include technology, transport, energy, healthcare, environment, water and waste management. A Smart City uses information technologies to support a strong and healthy economic, social, cultural development, by making efficient use of physical infrastructure. It engages effectively with local people in local governance and decision, by use of open innovation processes and e-participation, with the emphasis placed on citizen participation and co-design; it learns, adapts and innovates thereby responding more effectively and promptly to changing circumstances. Smart cities evolve towards a strong integration of all dimensions of human intelligence, collective intelligence as well as artificial intelligence within the city. At the core of Smart Cities is strong infrastructure, seamlessly connected and coordinated. The key infrastructure pillars comprise of transportation, power, integrated utilities, urban development, resource management, IT based connectivity. In a Smart City, these basic infrastructure pillars form the foundation that support building blocks like sustainability, inclusiveness and convergence. All aspects of daily life like education, heath, connectivity, waste-management, basic utilities, upkeep and upgrade of civic services and functions are accessible through on a single platform driven by IT. The infrastructure of a Smart City synergies resources to reduce wastage and create an overall eco-system enabling its citizen to enjoy a higher quality of life. 04

7 Smart Governance Revenue Management Administration Grievance Management Disaster Management Policy Smart Living Sewerage and Sanitation Water Supply Electricity Storm Water Drainage Housing Citizen Safety Municipal Waste SMART INCLUSIVE DEVELOPMENT Growth (People, Planet) Environment Care / Carbon Footprint Control Participation Smart people Education Participation in Public Life Participation of Communities / Advocacy Health Inclusive Development Smart environment Pollution Sustainable Resource Management SMART SUSTAINABILITY Meeting Urban Challenges Smart Infrastructure Growth (Economical, Cultural and Political) Smart economy Income Levels Labour Market Poverty Level Smart Mobility Transport Traffic Management Information Communications Technology (ICT) 05

8 Welcome to Essel Group Essel Group Pioneering lives The Essel Group is widely recognized as one of the top business conglomerates in India. It began its journey in 1926, and since then with the strong leadership and the unwavering vision of the Group Chairman Dr. Subhash Chandra, its presence across the entire value chain has been in developing and adopting new technologies to remain ahead of the growth curve. The Group has diverse business interests in media, entertainment, packaging, infrastructure, integrated utilities, education, financial services, precious metals, health & wellness and technology sectors. It is a multi-billion dollar Group with market capitalization of over USD 6 billion, of its listed entities, having a strong national and international presence. The Essel Group is renowned for setting benchmarks of success and being a leader in every business it undertakes. Assimilating the principle of Faith in innovative and organized growth, the Essel Group is globally creating value in the lives of millions - every day, every moment. Dr. SubHash Chandra Innovator, Thought-leader, Pioneer Dr. Subhash Chandra, Chairman of Zee Entertainment and promoter of Essel Group of Companies is a thought-leader and an innovator. He has made his mark as an influential philanthropist in India. Dr. Chandra has forayed into more than 100 business verticals and has consistently demonstrated his ability to identify new businesses and successfully lead them. A firm believer in altruism, Dr. Subhash Chandra has taken a lead in realizing the dream of Smart cities to enhance the quality of life in India. We are very excited about the government s vision to create 100 Smart Cities. We want to collaborate with the government of India on its vision and we believe that Essel Smart City will enhance on how the government can deliver governance and services to citizens. The foundation for a Smart City will be integrated services which will transform the delivery of citizen services, right from infrastructure, to power and utilities. The Essel Smart City and the announcement of the next phase of our expansion underlines our commitment to deepening our presence in India and help transform the way citizens will live, work, play and learn. 06

9 Blazing new trails Essel Infraprojects Ltd. (EIL) and Essel Utilities Distribution Company Ltd. (EUDCL) are the successful enterprises of the Essel Group pioneering the infrastructure and integrated utilities space. Essel Infraprojects is a successful venture by the Essel Group with three strategic business units comprising of Core Infra which includes Transport (Roads, Airports, Metro & Monorail), Power Transmission, Urban Infrastructure; Green solutions which includes Environment (Municipal Solid Waste, Sewage & Waste Water Treatment), Renewable Energy (Solar, Hydro & Wind) and Integrated Utilities, having a national footprint in more than 11 states and across 50 cities. It aspires to contribute to India s growth and prosperity by investing in key infrastructure initiatives. The Company has embarked on an exciting journey to transform the urban Indian landscape with significant infrastructure projects and by bridging the gap between developed and developing areas, through infrastructure developments. The Essel Group has a history of relentlessly conquering feat after feat, adding new feathers to its cap with each achievement. One of its most successful endeavors is Smart Utilities, engaged in improving the existing public utilities, by investing in assets and deploying global best practices. Smart Utilities, India s first integrated utilities brand, delivering smart value and efficiency, committed to participating in public-private partnership projects across India for transforming the ageing public utility infrastructure into a modern state-of-the-art utility realm. This will not only be instrumental in bringing about a radically positive change in India s infrastructure, but will also ensure in elevating the quality of life for billions. EUDCL, under long term PPP association spanning over years, will nurture integrated smarter solutions across major cities of India by undertaking projects in Power & Water Distribution Services, Municipal Solid Waste Management, Sewage Treatment, Drainage & Storm Water Management, City Wi-Fi and Cable & Broadband, City Gas Distribution and Intelligent Traffic Management System. Smart Cities: The Future. Built by Essel Built for Growth The relative lower efficiency and poor service quality in many of the current urban services delivery creates an opportunity in Smart City development. Comprehending this gap, the Essel Group has chartered its journey to take the opportunity by developing India s futuristic smart cities that will improve the quality of life through enhanced master planning and effective service delivery. It understands that private sector participation in developing Smart Cities will ensure efficiency and service quality in the times to come. This is a first-of-its kind concept where all the components of smart physical infrastructure and integrated utility services will be offered under one roof to realize the Smart City dream of India. From the planning and designing stage, to funding and implementation of projects, the Company will undertake turnkey projects for creating Smart City habitats. Smart cities, with technological advantages will provide qualitative lifestyle, cost efficient physical and social infrastructure such as water, sanitation, electricity, clear air, education, health care, security and entertainment, etc. Being a revolutionary idea in the domain of delivering Integrated, Innovative, Inclusive and Sustainable smart cities, Essel Group envisages to transform every Indian city into a Futuristic city. Essel Group s objective is to build integrated utilities that are inclusive, towards developing state-of the-art infrastructural solutions that are innovative, sustainable, as well as ecofriendly. 07

10 Essel s VISION & MODEL for smart city A Smart City that touches every part of your home, and hence lives, through everything that is offered to you - from services to delivery. The population migration towards urban areas sees cities burdened with several environmental and resource depletion issues. This has not only jeopardized the existing infrastructure, but has pressed the need to create systems and networks to ensure optimum utilization of resources. The concept and model of smart cities is basically a progressive state of urban living, where the existing resources are integrated into a well-defined network to ensure minimum wastage and maximum comfort. The focus and aim is to deliver a happier lifestyle through integrated solutions, innovation and technology. 08

11 The Company will be associating with multiple partners that have global expertise in developing the Smart City ecosystem and will lead the consortium (in the capacity of Smart City concessionaire), by closely working with the government in decoding the governance policy framework and a sustainable financial model for smart cities. To accommodate this massive urbanization, the Group has recognized smarter ways to manage complexities, reduce expenses, increase efficiency and improve the quality of life. Integrated utilities are paving the way towards inclusive and sustainable Smart Cities transforming the utilities landscape and implementing an all-in-one utility solution that will deliver an efficient and compact conduit to consumers, thereby providing scalable and affordable services for a smarter life. Essel Infraprojects is India s only Integrated Smart City Developer to develop integrated, inclusive and sustainable cities for tomorrow. Being thought leaders in this domain, the vision is to nurture and realize the Smart City dream of India and play a focal role in implementing convergence of smart physical infra along with integrated utilities corridor that will bring the desired enhanced quality of lifestyle. This is the journey, to develop inclusive smart cities in India that will exhibit the true spirit of glocalization. 09

12 Foundations of a Smart City Smart Cities are planned cities aimed to improve, augment and upgrade urban living through the use of integrated smart solutions and performance to improve the well being of all its citizens, irrespective of social or economic class. It integrates, in a more efficient manner, the use of smart physical infrastructure, transport, energy, healthcare, information technology, environment, water and waste management in a cohesive manner to underline progress, livability, workability and sustainability. It is driven by the major challenges of today, including climate change. Smart Cities also support a strong and healthy economic, social and cultural development by making efficient use of physical infrastructure. They engage effectively with citizens in local governance and decision by using innovation processes, e-participation and co-design. A Smart City learns, adapts and innovates by responding more effectively and promptly to changing circumstances. It enhances competitiveness, sustainability and quality of life with inclusivity, improving the city s physical, spatial and ecological environment. Smart Cities help transform lives for a better tomorrow. Smart Grid and Meters Focus on Renewable Energy Power & Water Distribution Solid Waste Management City Gas Distribution Citi-WiFi, Cable & Broadband 10

13 Smart City (People, Technology and Infrastructure) Competitiveness Ease of doing business, Employment Opportunities and Attract Investments Sustainability Social, Environment and Financial Quality of Life Citizen Health, Education, Utilities, Institutional and Social Services Inclusivity Affordable Technology and Infrastructure City s Physical, spatial and ecological environment Pollution Detection Effluent Treatment Urban Noise Maps Crisis Management & Command Centers Video Surveillance Integrated Transport Smart Parking Adaptive Traffic FUEL STATION 11

14 Governance Framework Governance services in a Smart City are a managerial function for the Smart City concessionaire. These services may not be capital intensive, but they bring in a high value-add to the city s operations. The rationale is that they help manage conflict and promote a smooth single-point contact, compared to various departments that citizens need to go to today. The Smart City concessionaire will coordinate between the various branches of utility companies as well as between State and Central government bodies, providing seamless operations, integrated service delivery, holistic e-governance and economic services. Proposed Model promotes Integrated service Delivery Existing Model Service providing Organizations Proposed Model Smart City Concessionaire City operations Service (Common ICT) and e-governance services ULB Power Company Gas Company Other Services Water Property Tax Land and Other Planning Licences Health Care Education Birth / Death / Marriages Registration Grievance Handling Welfare Schemes Governance Services Land Use Planning Customer Service Centre Surveillance Mobility Management Utility Tunnel Common Utility Infrastructure Economic Services Mobility (Transport Options Road, Rail etc.) Broadband and Network Water and Waste Water Management Power Supply City Gas Distribution Stapled Contracts Citizens Other Govt. Bodies Tax Payers Businesses Citizens Other Govt. Bodies Tax Payers Businesses 12 Multiple Customer Touch Points and Customer Interactions Single Customer Touch Point

15 Proposed PPP (Concession) framework Central Govt. Railways (Station Area Development) PNGREB (City Gas) State Govt. Statutory Functions Service Provider (Power, Mobility etc.) ConCessioning Authority City Investment Fund Governing Board Operating Arm* Contract / Agreement Smart City Concessionaire City operations Service (Common ICT) and e-governance services Common services across the city (mostly G2B some G2C) Other citizen services in the city (B2C) Governance Services Land Use Planning Customer Service Centre Surveillance City Management Utility Tunnel Common Utility Infrastructure Economic Services Mobility (Transport Options Road, Rail etc) Broadband and Network Water and Waste Water Power Supply Stapled Contracts City Gas Distribution *For residual functions not transferred to the concessionaire 13

16 Revenue & Financing Model The development of Smart Cities will require a holistic framework that will consider both the high capital expenditure (CAPEX) as well as structure the revenue streams such that over a period of time, these Smart Cities will become financially self-sustainable. Under the framework, every Smart City will have two distinct components: Government Services and Economic Services. The Capex and Revenue streams of each of these is showcased below: Proposed Framework Commercial Financing (arranged by the Concessionaire) Central Grants / Concessional Loans State Grants City Investment Fund Commercial Financing (arranged by the Concessionaire) Capex D G F E D Institutional Infrastructure Service - 1 Service - 2 Service - n Concessionaire Other Citizen Services I H C B A Incentive Based Payment from Central Government J Indirect Sources (e.g. advertising, rentals, etc.) Fees for Process Support to Statutory Functions State - Shared Taxes City Taxes Citizens User Charges Revenue Streams 14

17 In the proposed financial / revenue framework, the bold arrows indicate the permanent nature of the cash flows. Grants from the Central and State governments (G and F) will help start the project, but will eventually reduce over time as the service efficiency and financial viability of the economic services improve. Funding of Capital Expenditure For Governance Services, which are low capital intensive but high value add functions, the commercial financing arranged by the concessionaire will be the major financing source (D) For Economic Services, due to their capital intensive nature and financial viability, a mix of financing sources would be required to meet the CAPEX D Commercial financing which will be arranged by the concessionaire, to the extent it can be supported by future revenues (user charges, tax revenues, operating subsidies) E City Investment Fund, which will capture the land value appreciation to fund city s investment need F State support in the form of Grants / Budgetary allocation as well as under various state schemes, which can reduce over time G Central support under Smart City scheme of MoUD (under formulation), other schemes of MoUD and other ministries as well as access to low cost long term capital (in the form of deep discount type or equity or multilateral loans) Revenue Cash Flows Revenue streams for Governance Services: H Cash flows from indirect sources such as advertising fee, rental receipts from managing municipal estate (e.g. town halls), fees for managing back-end processes for statutory functions of the government etc. I - Incentive based payment from Central government against performance indicators such as incremental tax revenues, air quality, base line GDP growth, etc. J Fees from agencies that outsource their front-end or back-end processes to the concessionaire (RTO, etc.) Revenue streams for Economic Services: A - Citizens pay user charges for services such as power tariff, water charges, sewerage charges, etc. $ B Fixed Fee which is funded through revenues from city level taxes (tax collection by the concessionaire as agent of the ULB / SADA, which will then be transferred to the concessionaire in a predetermined manner) C - State taxes which are currently shared with ULBs such as entertainment tax, vehicle tax, profession tax, etc., would need to initially supplement the city level taxes for payment of the Fixed Fee (B). These would decline over a projected trajectory (as efficiencies and city taxes improve), and could eventually be limited to only areas that the State government would like to explicitly subsidize 15

18 Essel Infraprojects - India s only Integrated Smart City Developer Essel Infraprojects Ltd. is one of the fastest growing companies having diversified interests in development of smart theme based infrastructure. It is a successful venture by the Essel Group with 3 SBUs and 6 business verticals. It has an order book valued at USD 3.3 billion, i.e. close to 20,000 Crore INR and a National footprint in more than 11 states and across 50 cities. The Company aspires to contribute to India s growth and prosperity by investing in key infrastructure initiatives. It has embarked on an exciting journey to transform the urban landscape of the country by Building Integrated, Inclusive and Sustainable Smart Cities of tomorrow. Today, Essel Infraprojects Ltd. has presence in Transport (Roads, Airports, Metro & Monorail), Power Transmission, Urban Infrastructure; Green solutions which includes Environment (Municipal Solid Waste, Sewage & Waste Water Treatment), Renewable Energy (Solar, Hydro & Wind) and Integrated Utilities. Power Transmission Prestigious Darbhanga-Motihari project in Bihar and NRSS XXXI; B project in Punjab & Haryana Urban Development Theme based development - Mega Sports City, Bhopal - Family Recreational Centre, Bhopal - TALEEM, Mumbai Transport 13 successful road projects: 8 projects operational; more than 3600 kms across 9 states in India Vision for future; Development of low cost airports and efficient management of airport infrastructure. 16 Build and execute cost effective mini metro solutions (Light Rail Transport)

19 At Essel Infraprojects, we understand the immense value of our natural resources and environment. Sustainability, environment and responsible use of resources underpin in all our Smart City Vision, making them Green. We deploy Renewable Energy in the form of Solar, Hydro and Wind Power, and constantly endeavour to improve efficiency in power generation. We work on improving water resources, ensuring water is accessible to all, with minimal wastage. Our waterdesalination initiatives, water and waste-treatment plans and solid-waste management projects are all aimed at recycling waste to create wealth for the citizens of the Smart Cities. Environment 7 municipal solid waste management projects in Mumbai, Chennai, Bangalore, Surat, Jabalpur, Bhubaneswar & Sikar Renewable Energy 5 Solar projects with 110 MW of generation capacity 1 Hydro project in Nepal Aiming towards development of Wind Power to meet renewable energy requirement of India Essel Infrastructure has proven business excellence (Lean Six Sigma, Process Management) and program management methodologies to continuously improve systems, processes and project management capability to deliver enhanced value to stakeholders. 17

20 Smart utilities - India s first Integrated utilities brand Smart Utilities is India s first integrated utilities brand that is committed towards delivering smart value and efficiency by participating in public-private partnership projects across India to transform the ageing public utility infrastructure into a modern state-of-the-art utility realm. Smart Utilities is the flagship brand of Essel Utilities Distribution Company Limited (EUDCL) engaged in improving the existing public utilities, by investing in the assets and deploying global best practices. Smart Utilities is accelerating its operations by undertaking projects offering services like Power & Water Distribution, Municipal Solid Waste Management, Sewage Treatment, Drainage & Storm Water-Management, City Wi-fi and Cable & Broadband, City Gas Distribution and Intelligent Traffic Management System. It works towards developing innovative, sustainable and eco-friendly landscapes providing scalable and affordable services for a smarter life. Smart Utilities under long term PPP (Public Private Partnership) association spanning over 35 years will nurture integrated smarter communities across major cities of India. This will not only be instrumental in bringing about a radically positive change in our country s infrastructure, but ensure in delivering happiness in lives of billions as well. We aim towards a top line revenue of USD 325 million i.e. close to 2000 crores INR and a reach of more than 2 million consumer households by

21 Power Distribution Smart Utilities focuses to improve efficiency and reliability of power distribution in India with an aim to deliver qualitative 24x7 power supply with unmatched consumer experience and reduced T&C losses. Presently, Smart Utilities proudly boasts to be India s largest power distribution franchisee network with presences across 5 cities - Nagpur, Muzaffarpur, Gwalior, Ujjain and Sagar. Water Distribution Smart Utilities aims at enhancing lives through equitable and portable distribution of water with 24x7 clean drinking water supplies in city of Aurangabad and Bhagalpur. Cable & Broadband Smart Utilities aims to make home and workplaces a converged world of easily accessible information, entertainment and services. Planned roll-out of City Wi-Fi and Broadband services in 250 cities across India. Solid Waste Management At Smart Utilities, the most important objective is to develop long term health and sustainability, energy generation and converting waste to energy - without damaging the ecosystem. We are the largest player in Waste to Energy Sector in India with world class MSW plants. City Gas Distribution The objective at Smart Utilities is to implement the distribution of safe, efficient and reliable energy in the form of natural gas for applications in various sectors in Indian cities and contribute significantly towards a pollution-free environment. 19

22 Essel Infra & Utilities - National Footprint Across 11 states and 50 cities Sikar Navi Mumbai Bijapur 20

23 The key features of a Smart City is in the intersect between competitiveness, capital and sustainability. The smart cities should be able to provide good infrastructure such as water, sanitation, reliable utility services, health care; attract investments; transparent processes that make it easy to run a commercial activities; simple and on line processes for obtaining approvals, and various citizen centric services to make citizens feel safe and happy. Government of India FUEL S TATION

24 Essel Infraprojects Limited, 513/A, 5th Floor, Kohinoor City, Kirol Road, L.B.S. Marg, Kurla (W), Mumbai T: F: