Municipal makeover: Indian cities embrace cutting-edge tech

For years, navigating the bureaucracy of municipal corporations in India has been synonymous with red tape and inefficiency.

However, a quiet revolution is underway. Fuelled by the rapid advancement and adoption of cutting-edge technologies, cities across the country are undergoing a digital makeover, transforming how they operate and serve their citizens.

In a move unimaginable just a decade ago, the Raipur Municipal Corporation in central India recently partnered with Airchains, a blockchain technology firm, to implement fully homomorphic encryption.

The groundbreaking technology ensures data privacy while enabling secure and transparent issuance of building permits, work orders, and real-estate development permissions. Each document will now feature a blockchain-secured QR code, verifiable by anyone, thereby mitigating fraud and boosting public trust.

By March 2024, the Raipur Municipal Corporation had approved more than 8,300 building permission certificates, as well as 40 to 60 work orders that generate revenue of nearly $120,000 annually. “This represents a significant step towards enhancing transparency and efficiency,” said its commissioner, Abhinash Mishra.

Blockchain technology has also been adopted by other states such as West Bengal, where the New Town Kolkata Development Authority has implemented non-fungible tokens (NFTs) for land registration.

“Covering an area of 27,000 acres, a total of 50,000 NFTs have been implemented, representing one million property records,” said Prateek Tripathi, research assistant at the Observer Research Foundation’s Centre for Security, Strategy and Technology, noting that the Indian government is in the process of deploying blockchain technology in various use cases.

He pointed to Tamil Nadu’s blockchain backbone, Nambikkai Inaiyam, which lets citizens store essential documents such as academic and birth certificates in a digital wallet. In Uttar Pradesh, a public grievance management system also uses blockchain to file and track complaints, improving transparency and deterring corruption.

In logistics, the use of electronic waybills is providing real-time data on goods in transit, improving compliance checks and ensuring smoother movement of goods for businesses, said Kulraj Ashpani, partner at Dhruva Advisors.

“Fraud detection has also been vastly improved, with advanced analytics helping to identify tax evasion patterns such as under-invoicing, false credit claims, and circular trading, leading to quicker action against violators,” he added.

Across India, drones are taking to the skies, not just for aerial photography, but as critical tools for urban planning and infrastructure management.

For instance, the Kolkata Municipal Corporation is deploying drones to survey a complex network of outfall canals, while Bhubaneswar, in eastern India, is deploying them to conduct extensive surveys of water bodies, aiding in rejuvenation efforts. These initiatives showcase the power of drones to gather accurate and timely data, enabling informed decision-making for crucial infrastructure projects.

On the ground, the Chandigarh Municipal Corporation is using artificial intelligence (AI) to address the complex issue of stray dog management. A pilot project is underway to use AI and microchip implants to track stray dogs, monitor their vaccination and sterilisation status, and map their movements. This data-driven approach aims to enhance animal welfare while addressing public health concerns more effectively.

Ashpani noted that the introduction of the GST in India has marked a significant transformation in the nation’s tax administration, with technology at the core of this evolution.

The Goods and Services Tax Network (GSTN) has adopted digital filing, simplifying tax compliance for businesses. Features such as e-invoicing ensure accuracy and transparency, while real-time access to filing status empowers businesses to manage their tax obligations efficiently, he noted.

While the benefits of this technological transformation are undeniable, challenges remain. In the case of taxation, Ashpani said the uneven adoption of technology across different jurisdictions, particularly in rural areas, has led to inefficiencies.

“Moreover, the overuse of data analytics has caused unnecessary inquiries that disrupt business operations for compliant taxpayers. This particularly has led to vast amount of system generated notices across jurisdictions,” he added.

Tripathi pointed to the capital required for implementing blockchain technology on a large scale. “While this may not be a major issue for large corporate entities, financing is a major hurdle for smaller startups and even government establishments. Digital infrastructure such as high-speed internet connectivity and computing resources are crucial for the migration to and maintenance of digital ledgers,” he said.