Under the programme, IBM will send a team of experts to each of the chosen cities where they will spend three weeks working closely with city staff analyzing data about critical issues faced by its local bodies.
Each consulting engagement under the 'Smarter Cities Challenge' has a commercial value of USD 500,000.
"The initiative gives us the opportunity to work with city municipal corporations on diverse societal issues from transportation to disaster management, healthcare to waste management and share recommendations to become more effective in transforming citizen services," IBM India Head Corporate Citizenship and Corporate Affairs Mamtha Sharma told PTI.
Delhi, Ahmedabad, Pune and Chennai have received the Smart Cities Challenge grant in India in the past.
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The Indian government plans to develop 100 smart cities by 2022. In the Budget, Finance Ministry had allocated Rs 7,060 crore for developing these smart cities.
Governments across the world are keen on setting up smart cities, where technology can help citizens access, in real time, infrastructure services like traffic, parking, lighting, and water.
The 16 cities for 2015-16 were selected from more than 100 cities that applied for a grant of consulting services from IBM.
By the end of 2016, IBM estimates to make such grants to more than 130 cities, with nearly 800 of IBM top experts delivering pro bono services valued at more than USD 66 million.
"For the first time, in addition to providing pro bono consulting services, IBM will use IBM Watson Analytics Professional Edition to help take the city's pulse, as expressed on social media.
The tool can understand questions posed in natural, non-technical language, and help its users collaborate, predict and plan, she added.