The Smart Cities Mission will officially conclude on March 31, 2025, with no further extensions.

Current Status of theSmart Cities Mission

• 93% of projects are completed, while 7% (567 projects worth ₹14,357 crore) remain unfinished.
  • The Ministry of Housing and Urban Affairs (MoHUA) may issue final guidelines for managing the remaining projects.
• As of March 10, 2025, ₹47,538 crore of the total ₹48,000 crore central assistance has been released.
  • Cities have spent ₹45,772 crore on Smart City projects so far.

Major Expenditure Areas

• Water, sanitation, and hygiene projects had the highest expenditure (₹46,730 crore).
• Smart mobility projects received ₹37,362 crore.
• Smart governance projects accounted for ₹16,262 crore.

About Smart Cities Mission

• Launched in 2015 to develop 100 smart cities across India.
• Cities were selected through competitive rounds from January 2016 to June 2018.
• Each selected city had five years to complete projects, with deadlines between 2021 and 2023.
• The mission deadline was extended three times, with the final extension ending on March 31, 2025.
• Objective: Transform 100 cities to provide core infrastructure, a clean and sustainable environment, and an enhanced quality of life through smart solutions.
• Ministry: Ministry of Housing and Urban Affairs (MoHUA).
• Type: Centrally Sponsored Scheme.
• Funding:
  • The Union Government provides an average of ₹100 crore per city per year.
  • The State/Urban Local Bodies (ULB) contribute an equal matching amount.
  • Additional funding sources include Finance Commission grants, municipal bonds, government programs, and loans.
• Selection Process: 100 cities were chosen through a two-stage competitive selection process based on Competitive and Cooperative Federalism.
• Implementation Model: Special Purpose Vehicle (SPV)
  • Each city has a Special Purpose Vehicle (SPV) responsible for planning, implementation, and management.
  • The SPV is a limited company under the Companies Act, 2013.
• Promoters: Jointly by State/UT and Urban Local Body (ULB) with a 50:50 equity shareholding.
• Private investment is allowed, but State/UT and ULB must retain majority control.

Smart City Development Strategy

Three Models of Area-Based Development

• Redevelopment (City Renewal) :  Modernization of existing urban areas with upgraded infrastructure. (Example: Bhendi Bazar, Mumbai).
• Retrofitting (City Improvement): Upgrading infrastructure in existing areas for efficiency and sustainability. (Example: Local Area Development, Ahmedabad).
• Greenfield Projects (City Extension): Creating new sustainable urban areas with smart technologies. (Example: New Town Kolkata, Naya Raipur, GIFT City, Gujarat).

Pan-City Solutions

• Involves smart technology implementation across the entire city.
• Focuses on ICT-based solutions in e-governance, waste management, water management, energy efficiency, urban mobility, and skill development.
• The Smart Cities Mission aligns with schemes like:
  • AMRUT (Atal Mission for Rejuvenation and Urban Transformation).
  • Swachh Bharat Mission (SBM).
  • National Heritage City Development and Augmentation Yojana (HRIDAY).