Smart City Mission

Objectives

Salient features

• Promote cities with smart solutions for core infrastructure, sustainability, and quality of life through the application of ‘smart solutions’.
• Drive growth through comprehensive development of social, economic, physical, and institutional aspects.
• Create replicable models for sustainable, inclusive urban development to inspire other cities.

• Ministry: Ministry of Housing and Urban Affairs (MoHUA).
• Launch year: 2015
• Valid Till: 31^st March 2025
• Type: Centrally Sponsored Scheme
• Funding: The Union Government provides on an average Rs.100 crore per city per year.
  • An equal amount on a matching basis is to be provided by the State/ULB.
  • Additional resources mechanism includes grants under the Finance Commission, innovative finance mechanisms (Municipal Bonds), government programs and borrowings.
• Selection Process: 100 Smart Cities have been selected based on the idea of Competitive and Cooperative Federalism. 
  • Stage 1 of the competition: Shortlisting of cities by States. 
    • Cities are distributed among the States and UTs on the basis of an equitable criterion. In this Stage, the competition was intra-state.
  • Stage 2 of the competition: The Challenge round for selection
    • Each of the potential Smart Cities prepared their proposals for participation in the ‘City Challenge’ to competes for selection as a Smart City.
• Special Purpose Vehicle (SPV): Implementation of the Smart Cities Mission is being done by a SPV. 
  • The SPV will plan, appraise, approve, release funds, implement, manage, operate, monitor and evaluate the Smart City development projects.
  • It is set up at the city level in the form of a limited company under the Companies Act, 2013.
  • It is promoted by the State/UT and the Urban Local Body (ULB) jointly both having 50:50 equity shareholding.
    • Private entities may invest, but the State/UT and ULB must retain majority control.
  • Funds provided by the Government of India in the SCM to the SPV will be in the form of tied grant and kept in a separate Grant Fund.
• Strategy: 
  • Adopted three models of area-based developments:
    • Retrofitting (city improvement)
    • Redevelopment (city renewal)
    • Greenfield (city extension)
  • Along with area-based development, a pan-city initiative is also used.
    • It envisages the application of selected smart solutions to the existing city-wide infrastructure.
• Convergence with Other Government Schemes: With schemes such as AMRUT, Swachh Bharat Mission (SBM), National Heritage City Development and Augmentation Yojana (HRIDAY),etc.
• Integrated Command and Control Centres (ICCC): ICCCs in 100 Smart for evidence-based policy and decisions.
  • Provides several online services to citizens in areas of traffic management, health, water etc.
• Current status: As on 03rd July 2024, the 100 Cities have completed 7,188 projects (90% of total projects).