Field Research Project Report On:

Smart Cities: Impact on Urban

Mobility

Submitted in Partial Fulfillment of the Requirements

for the Award of

Post Graduate Diploma in Industrial Management

(PGDIM)

Submitted by:

Vinay Sudershan

Roll No. 1402209

Batch PGDIM

Year 2014-16

Under the guidance of:

Prof. Vijaya Gupta

Professor

NITIE, Mumbai
1
 Certificate

This is to certify that the project titled Smart Cities:Impact on Urban Mobility
has been carried out by me at NITIE, Mumbai under the guidance of Prof.
Vijaya Gupta, Professor, NITIE from 19th January, 2016 to 15th March, 2016.

Based on the professional work done by me, I am submitting this report

towards the partial fulfillment of Post Graduate Diploma in Industrial
Management (PGDIM) at NITIE, Mumbai. This report has not been published
and submitted to any other institute or university.

Vinay Sudershan
PGDIM21
1402209
15/03/2016

2
.
 Certificate of Project Completion

This is to certify that Vinay Sudershan, a student of Post Graduate Diploma in

th
Industrial Management (PGDIM), 2016 batch of National Institute of Industrial
Engineering (NITIE), Mumbai has successfully completed his final year field
project, titled

Smart Cities: Impact on Urban Mobility

The project has been successfully completed under the guidance of the
th
undersigned from 19
January, 2016 to 15th March, 2016 at NITIE, Mumbai.

It has been carried out and presented in a manner satisfactory to warrant its
acceptance as a pre-requisite for the award of Post-Graduate Diploma in
Industrial Management for which it has been submitted.

Faculty Guide
Prof. Vijaya Gupta
Professor
NITIE, Mumbai
3
 Acknowledgements

I wish to extend my sincere and heartfelt gratitude to National Institute of

Industrial Engineering for offering me a unique platform to garner knowledge
and earn industry exposure by way of this project.

I wish to extend my sincere and heartfelt gratitude to my faculty guide, Prof.

Vijaya Gupta,
Professor, NITIE Mumbai, who provided valuable suggestions throughout the
course of the summer internship. Her guidance really helped me to execute
the project successfully. The continuous support and mentorship helped me
to progress in the right direction with time.

I thank entire NITIE faculty and NITIE staff for their support during the course
of this project. There are many whom I may have left out in the
acknowledgement, but whose co-operation no doubt went a long way in the
project.

Vinay Sudershan
PGDIM21 - 1402209
th
15 March 2016
4
 ABSTRACT

India is all set to become the most-populous country in the world by 2030, making it
the home to the biggest and the most under-penetrated market for global
manufacturers and service providers. Unlike its preceding generations, this growing
population is also shifting to top tier cities of the country giving rise to new
megacities estimated to generate 80% of economic growth, with potential to apply
modern technologies and infrastructure, promoting better use of scarce resources.

As per estimates, about 2530 people will migrate every minute to major Indian
cities from rural areas in search of better livelihood and better lifestyles. With this
momentum, about 843 million people are expected to live in urban areas by 2050.
To accommodate this massive urbanization, India needs to find smarter ways to
manage complexities, reduce expenses, increase efficiency and improve the quality
of life.

With this context, Prime Minister Narendra Modis vision Digital India, has set an
ambitious plan to build 100 smart cities across the country. Modi in his speech
quoted, Cities in the past were built on riverbanks. They are now built along
highways. But in the future, they will be built based on availability of optical fiber
networks and next-generation infrastructure.

The Government of India allocated INR70.6 billion (US$1.2 billion) for Smart Cities in
Budget 201415. Given the sheet scale of the development plan, the public
resources would largely be insufficient and the government is working on
envisaging new financing routes to boost the program.
5
 TABLE OF CONTENTS

Contents
1. Introduction.............................................................................................................................
9

1.1 Project Overview..............................................................................................................

9

1.2 Project Objectives..........................................................................................................

10

2. Introduction...........................................................................................................................
11

3. Methodology..........................................................................................................................
13

3.1 Data...................................................................................................................................
13

3.2 Trend Analysis.................................................................................................................

14

3.3 Data Analysis..................................................................................................................

15

4. Results and discussions......................................................................................................

18

5. Recommendations and Future Scope..............................................................................

19

6. Conclusion.............................................................................................................................
19

7. References.............................................................................................................................
20
6
 LIST OF ILLUSTRATIONS

Figures Page No.

Figure 3-1: Trend of average petrol price 14

Figure 3-2: Trend of petrol consumption per capita (litres) 14

Figure 3-3: Trend of average diesel price 14

Figure 3-4: Trend of diesel consumption per capita (litres) 14

Figure 3-5: Trend of GNI per capita (USD) 15

Figure 3-6: Trend of CO2 emissions (metric tonnes per capita) 15

Figure 3-7: Regression analysis of petrol consumption 16

Figure 3-8: Regression analysis of diesel consumption 17

Figure 3-9: Regression analysis of CO2 emissions 18

7
 LIST OF TABLES

Tables Page No.

Table 3-1: Petrol prices & consumption, GNI per capita, CO2 emission 13

Table 3-2: Diesel prices & consumption, GNI per capita, CO2 emission 14

8
 1. Introduction

India has several advantages with a smart city:

1.The vision for smart cities includes quality communications including Wi-Fi and
infrastructure like drinking water on tap, automated waste collection and
uninterrupted power supply, all luxuries for most cities.
2. With an urban population set to rise by more than 400 million people to 814
million by 2050, India faces the kind of mass urbanization only seen before in China.
3. The cities would offer "decent living options to every resident" which would
provide a "very high quality of life comparable with any developed European city", a
note from the Urban Ministry declared.

1.1 Project Overview

A Smart city improves every aspect of human life

This is a holistic solution for cities based on green architecture
Sustainable development goals are set of goals and targets underpinned on
the Millennium Development Goals; and have the development of smart
cities as a principal focus.
A smart city uses digital technologies or information and communication
technologies (ICT) to enhance quality and performance of urban services, to
reduce costs and resource consumption, and to engage more effectively and
actively with its citizens.
Smart cities comprise smart governance, smart energy, smart building,
smart mobility, smart infrastructure, smart technology, smart healthcare and
smart citizen.
9
1.2 Project Objectives

Look at the various applications of Smart City in Urban Context.

Details of urban Mobility and Traffic Patterns

Study the effects of Transportation Economics and Congestion Pricing

10
 2. Introduction

Source: Smart City,Ministry of Urban Development,Government of

India

Some of the applications of smart cities are listed below :

1- In terms of security, hidden cameras detect potential threats before they
can strike
2- In terms of transportation, It connects people from cars, to trains, to boats,
etc making movement easier with a swipe of smart card (which tells
authorities where to locate a person)
3- In terms of environmental protection, harmful building materials are
avoided for housing and infrastructure such as roads, vehicles, waterways,
etc
4- in terms of green energy, there is continuous supply of energy like that in
Germany where houses are connected to the grid to supply solar power for
general use
 11

Green Architecture basically refers to environmentally friendly

buildings with these characteristics:

1- Ventilation systems designed for efficient heating and cooling.

2- Energy-efficient lighting and appliances.
3- 3- Water-saving plumbing fixtures.
4- Landscapes planned to maximize passive solar energy.
5- Minimal harm to the natural habitat.
6- Alternate power sources such as solar power or wind power.
7- Non-synthetic, non-toxic materials.
8- Responsibly-harvested woods and stone.
9- Adaptive reuse of older buildings.
10- Use of recycled architectural salvage.
11- Efficient use of resources
12
3. Methodology

As of 2013, the annual cost of congestion was valued at approximately

$121 billion1 from time lost, vehicle emissions and wasted fuel. Not to
mention the effects of traffic on air quality. Did you know consumer goods
are also impacted? When freight is delayed, those costs can end up being
added to the products we purchase. The effects of traffic are far-reaching.
Communities tout sustainability, air quality and uncongested roads as factors
in attracting top businesses and improving livability for constituents.
Retailers want to encourage easy accessibility to shopping centers.
Entertainment venues, campuses and stadiums all want to make it easier to
get to and from events for a positive visitor experience.
Sensors embedded and installed at various points along roadways and
intersections can communicate wirelessly to software residing in a secure
cloud environment. Customers will access aggregated performance metrics
such as speed, travel times, vehicle/ bicycle counts, volume/capacity, turns
and red light violations among other valuable traffic statistics. This
information will help municipalities and other transportation planning
organizations effectively manage the flow of traffic. By improving the driving
experience with fewer stops and better fuel economy, people in your
community can spend more time at their destination and less time getting
there.
Near-real-time awareness.
Often, traffic data is collected manually or studies are performed only
during a window of time. The problem with these methods is that changing
conditions are not continuously captured, making the information less
accurate over time. Intelligent Traffic Management uses embedded sensors
and hardware installed at intersections and other access points to gather
performance data. Because analytics are provided in near real-time, youll
have the most current information to make decisions as traffic patterns
evolve. Depending on your needs, Verizon can design and scale the solution
to provide information from basic to complex, including:
Travel time and intersection delays
Volume and capacity
Safety and arterial performance measurements
Greater efficiencies.
Unlike many traffic solutions that are premises based and costly to
maintain, Verizon offers a cloud-based software-as-a-service alternative that
reduces the barriers to change. By removing the headaches of supporting
expensive servers, Verizon enables you to focus on your core competencies.
Wireless connectivity is also a convenient way to address the challenges of
aging copper infrastructure associated with many traffic networks. At a
fraction of the cost of fiber, cellular communications provides reliable
visibility into your operations. So you can know how your system is
performing in near real-time. Our end-to-end solution is fully monitored, to
identify problems immediately, helping you save valuable time,
improving system performance and uptime. Solution advantages:
Fewer truck rolls
Maintenance and support included
Reliable wireless connectivity
Flexible pricing Solution benefits:
Faster commutes
Fewer stops and starts
Increased driving speeds

Sustainability.
Intelligent Traffic Management is a tool to aid in signal management,
which can have a tremendous impact on:
Congestion mitigation.
Air quality.
Idle times and fuel economy.
Stops and delays.

Traffic
This will link conventional traffic management technology with the Smarter
City ITS.
a) Monitor traffic and adjust signals and the interconnect system between
signals and remote
locations.
b) Replacing old wire interconnects with fiber-optics to establish a fiber-optic
loop

Transit
At the core of a complete overhaul of the regional transit system will be:
a) Redesigned transit routes and the overall system so they meet the
demands of area residents in terms of reliability and convenience. The City
aims to increase transit ridership to five percent of the population
b) Design incentives to increase transit ridership and measure impact in a
closed loop

Streets
Insights about people movement will guide retrofitting existing streets as
Complete Streets
a) Optimally design the Complete Streets pilot project so that it maximizes
convenience and accessibility for bicyclists, pedestrians and transit riders.
b) Implement land use and transportation planning that prevents sprawl and
encourages sustainable development.
Citizens
Personalized decision support for optimal informed choices citizens manage
what they can measure!
a) Provide individuals with electronic dashboards that allow them to
monitor their personal carbon footprints in real time based on their vehicle
miles traveled and modes of transport used.
b) Enable individuals to measure the impact of their actions and provides
decision support for comparing available choices with respect to their
metrics of interest

3.1 Data
The data collected has been tabulated as below.
Data for Petrol prices and consumption:-

Table 3-1
Data for Diesel prices and
consumption:-

Table 3-2

3.2 Trend Analysis

Petrol
Avg. Petrol Consumption
Price (INR) per capita
80 (litres)
60
40
20
0
2004 2005 2006 2007 2008 2009 2010 2011
2004 2005 2006 2007 2008
2009 2010 2011 2012 2013
2014

Figure 3-1

Figure 3-2

Avg. Diesel
Price (INR)
80
60
40
20
0
2004 2005 2006 2007 2008 2009 2010 2011
Diesel Consumption
per capita (litres)
2004 2005 2006 2007 2008
2009 2010 2011 2012 2013
2014

Figure 3-3

Figure 3-4

14
CO2
GNI per e
capita (USD) m
i
2000 s
s
1000 i
o
n
0 s
2004200520062007200820092010201120122 (
m
e
t
r
i
c
t
o
n
s
p
e
r
c
a
p
i
t
a
)

200420052006200720082
009201020112012201320
14

Figure 3-5

Figure 3-6
3.3 Data Analysis
As already defined in the methodology
that the effect on consumption and
emission by changes in fuel prices and
emission is studies, regression analysis is
done by keeping the consumption as
independent variable (Y). The price (X1)
and income (X2) are the dependent
variables.

Petrol Consumption (Y1) w.r.t.

price(X1) and income(X2):
The equation for petrol consumption is
taken as:
Petrol consumption Y1 = 1 + 1 (X1) +
2 (X2)

The regression analysis carried out shows

the output as below.

15
 Figure 3-7
2
The regression analysis shows R value as 0.958 which shows that the strong
relationship exist and petrol consumption can be estimated by the equation.
However, it is seen that the impact of petrol price is low on consumption as
coefficient is low and p value is high at 0.92. But we can see that the GNI per
capita has stronger relationship as coefficient is around 1% and p value is
significantly low.
The equation thus can be written as

Petrol Consumption Y1= 3.43+ 0.006 * Petrol Price + 0.011 *income per
capita

Diesel Consumption (Y2) w.r.t. diesel price(X3) and income(X2):

The equation for diesel consumption is taken as:
Petrol consumption Y2 = 2 + 3 (X3) + 4 (X2)
16
 Figure 3-8
2
The R value is high at 0.98 which represents good regression fit. It is to be
noted that there exist inverse relation between diesel price and
consumption. Whereas for petrol income per capita was dominating factor
for consumption but for diesel consumption, the price plays more important
role than income per capita.

The equation is for diesel consumption is as below

Diesel Consumption Y2= 26.43 -0.156 * diesel price + 0.031 * income per
capita

CO2 Emission (Y3) w.r.t. petrol price (X1), diesel price(X3) , petrol
consumption per capita (X4), income per capita (X2), diesel
consumption per capita (X5) and BS III emission norms changes
(X6), The equation for CO2 emission is taken as:

CO2 emission Y3= 3 + 5 (X1) + 6 (X3) + 7 (X2) +

8 (X5) + 9 (X6) The regression analysis carried out
shows the output as below.
17
 Figure 3-8
2
The R value comes out as 0.99 which significantly high depicting a good fit
between dependent and independent variables. The petrol price and
consumption plays more important role in increase in emission compared to
other independent variables.

Since October 2010, Bharat stage III norms have been enforced across the
country. In 13 major cities, Bharat stage IV emission norms have been in
place since April 2010 [10]. As can be seen from the results, with the
introduction of this compliance there is significant reduction in emission.

We also see that with increase in diesel price , CO2 emission reduces to
some extent.

The equation thus can be written as

CO2 emission Y3= 0.14+ 0.01* Petrol price - 0.0065 * Diesel price - 0.00018
* income per capita +0.068 * Petrol consumption +0.0011 *
Diesel consumption 0.05 * BS III compliance enforcement.

4. Results and discussions

18
(i) The petrol consumption in India is significantly dependent on the income per
capita of the country. The price of petrol does not affect the consumption to that
aspect as does the income per capita. With the increasing growth of GDP in
coming years, the consumption is going to increase further at a faster rate.

(ii) In case of diesel consumption in India, price plays more significant role. With
increase in a rupee of diesel, the consumption reduces by 15%. However, the
increase in per capita income also has an important role. With increase in income
within the country, the consumption is also on the rise.

(iii)The CO2 emissions reduces with increase in diesel price. The consumption of petrol
has strong effect on increase in emission.

(iv) The implementation of BSIII norms across country and BS IV in 13 major cities,
there is definitely a positive impact on the reduction of CO2 emission in the
country.

5. Recommendations and Future Scope

CO2 emissions relation with comparison to CNG compliance of public transport in

New Delhi can be further studied to find the effectiveness. Further the positive
effect subsequent introduction of metro rails for public commute in the metro
cities in the reduction of fuel consumption and emission can be further added to
study. The consequence of deregulation of diesel by government after removal of
subsidy has to be investigated for the effects on consumption and emission.

6. Conclusion

From the study, we have found that the consumption of automobile fuel and CO2
emission are related with the pricing of the fuel, the income per capita and
implementation of government compliances like BS III emission norms. As India
leads the GDP growth rate in the world in the next years to come, it would become
imperative for the government to keep a check on the consumption which directly
impacts the current account balance and pricing by taxing the fuel with time. By
further incorporating the recommendations for future scope, further studies can be
carried out to frame an effective pricing policy of automobile fuels and
implementing future environmental policies.
19
 7. References

1. Eltony M.N., 1995, Demand for gasoline in Kuwait: An empirical analysis

using cointegration techniques. Energy Econ., 17, 249253.
2. Eltony, M.N., 1996, Demand for gasoline in the GCC: An application of
pooling and testing procedures.Energy Econ., 18, 203209.
3. Liddle, B., 2009, Long-run relation among transport demand, income, and
gasoline price for the US.Transp. Res. D: Transp. Environ., 14, 7382.
4. Liddle, B., 2012, The systemic, long-run relation among gasoline demand,
gasoline price,
income, and vehicle ownership in OECD countries: Evidence from panel
cointegration and
causality modeling. Transp. Res. D: Transp. Environ., 17, 327331.
5. Kyoung-Min Lim, 2012, Short-Run and Long-Run Elasticities of Diesel
Demand in Korea. Energies , 5, 5055-5064
6. Annegrete Bruvoll, Bodil Merethe Larsen, 2004, Greenhouse gas
emissions in Norway: do carbon taxes work?, Energy Policy, Volume 32,
Issue 4, 493505
7. Jay S. Gregg, Robert J. Andres, Gregg Marland, 2008, China: Emissions
pattern of the world leader in CO2 emissions from fossil fuel consumption
and cement production, Geographical Research Letters , Issue 8
8. Prof. David A. Hensher, 2008, Climate change, enhanced greenhouse gas
emissions and passenger transport what can we do to make a difference?,
Transportation Research Part D: Transport and Environment, Volume 13,
Issue 2, pp 95-111.
9. S. Giblin, A. McNabola, 2009, Modelling the impacts of a carbon emission-
differentiated vehicle tax system on CO2 emissions intensity from new
vehicle purchases in Ireland, Energy Policy, Volume 37, Issue 4, Pages
14041411
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