Recognizing the value of institutional and technological investments, Special Purpose Vehicles and  Integrated Command and Control Centres, are to continue beyond the Smart City Mission deadline of 31.03.2025.

About Smart City Mission (SCM)

• Launch: The SCM was launched in 2015 by the Government of India to develop 100 smart cities as models of urban development.
• Aim: To improve quality of life, promote sustainable development, and integrate technology for efficient urban governance.
• Nodal Ministry: The Ministry of Housing and Urban Affairs (MoHUA) 
• Objective: The smart cities initiative was based on the Internet of Things (IoT) with objectives to: 
  • Enhance core infrastructure and ensure a clean, sustainable urban environment.
  • Promote the use of smart solutions for governance and service delivery.
  • Improve mobility, water supply, sewage systems, and waste management.
• Components: Area-Based Development (ABD) Focusing on retrofitting, redevelopment, and greenfield projects in specific city zones.
• Completion Status: As of March 2025, over 93% of 8,000+ projects under the Smart Cities Mission (SCM) have been completed. 
• Budget Utilization: The Government of India has disbursed 99.44% of the total mission outlay of ₹48,000 crore.
• SPVs:  A distinctive feature of the Mission was the establishment of Special Purpose Vehicles (SPVs). 
• Integrated Command and Control Centres (ICCCs): ICCCs are high-tech urban management platforms set up in all 100 Smart Cities under the Smart Cities Mission (SCM).

Special Purpose Vehicle

• SPV is a  legal entity (like a company) created for a specific purpose or project. 
• It operates independently from the government or parent organization that creates it.
• SPVs are used to manage and implement projects like infrastructure, smart cities, or asset monetisation. 
• They help in fast decision-making, efficient execution, and attracting private investment.
  

Special Purpose Vehicles under SCM

• Establishment: SPVs were created in all 100 Smart Cities under the Companies Act, 2013.
• Sharing: SPVs have a 50:50 equity share holding between State/UT governments/administration and respective Urban Local Bodies (ULBs) as promoters. 
• Mandate: These SPVs were mandated to implement the mission through focused planning, project development, and on-ground execution.
• Institutional Development: SPVs helped build strong institutional and technical capacity within urban governance systems and contributed to a skilled urban workforce.
• Advisory for Repurposing:  After SCM ends on 31 March 2025, MoHUA’s Advisory has recommended that SPVs continue to operate and be repurposed for broader urban development goals. 
• Future Functional Domains:  SPVs may now support ULBs and states in five key areas:
  • Technology Support (e.g., managing ICCCs, cyber hygiene, data analytics)
  • Project Implementation (central/state schemes, bankable projects)
  • Consulting Support (advisory across urban sectors)
  • Research and Assessment (evidence-based planning, start-up incubation)
  • Investment Facilitation (project structuring, coordination)
• Financial Sustainability:  SPVs may collect:
  • Project Implementation Fee: 1.5%–3% of project cost (state norms)
  • Centage Fee: For planning/design/execution of projects for state/central schemes
• Integration into Long-Term Governance: States/UTs are advised to institutionalize SPVs into their urban governance frameworks, ensuring long-term use of built capacities.

Integrated Command and Control Centres (ICCCs)

• Functionality: Integrated Command and Control Centres (ICCCs) serve as nerve centres of real-time, tech-enabled governance.
• Key Applications:
• • Traffic and crowd management
  • Public safety and disaster response
  • Solid waste management
  • Real-time monitoring during events
• Future Use: States are advised to integrate more services into ICCCs and ensure timely upgrades for enhanced utility.

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