Smart Cities Mission: Creating Inclusive, Tech-Driven Urban Hubs

1. Introduction and Need

The Smart Cities Mission, launched by the Ministry of Housing and Urban Affairs (MoHUA) on June 25, 2015, is a flagship urban development program aimed at fostering sustainable and inclusive cities across India. With rapid urbanization posing significant challenges like escalating congestion, inadequate infrastructure, environmental degradation, and resource scarcity, there was a pressing need for a comprehensive approach. The Mission sought to address these issues by promoting cities that provide core infrastructure, a clean and sustainable environment, and a decent quality of life to their citizens through the application of 'smart solutions', thereby transforming urban centers into engines of economic growth and improved livability.

2. Background and Implementation Framework

The Smart Cities Mission adopted a novel "Challenge" method for city selection, fostering competitive and cooperative federalism among states and urban local bodies (ULBs). Ultimately, 100 cities were selected through multiple rounds between January 2016 and June 2018.

The implementation strategy primarily involved two approaches:

  • Area-Based Development (ABD): This focuses on developing specific, identified areas within cities (e.g., retrofitting existing areas, redeveloping dilapidated zones, or creating greenfield developments) to serve as replicable models for other parts of the city.
  • Pan-City Development: This involves implementing smart solutions across the entire city, leveraging Information and Communication Technology (ICT) to enhance city-wide services and governance.

To facilitate project execution, Special Purpose Vehicles (SPVs) were established for each Smart City, acting as limited companies under the Companies Act, 2013. The mission is a Centrally Sponsored Scheme, with the Central Government committing ₹48,000 crore over five years, requiring an equal contribution from the respective state governments or ULBs, complemented by funds from public-private partnerships (PPPs) and municipal bonds.

3. Achievements and Progress Data

The Smart Cities Mission has spearheaded numerous projects, leveraging ICT to enhance urban services and fostering greater citizen engagement. As of March 2025, the Mission has made substantial progress:

  • Projects Completed: Out of 8,062 total projects, 7,502 projects (93%) worth ₹1,50,285 crore have been completed.
  • Integrated Command and Control Centres (ICCCs): All 100 Smart Cities now have operational ICCCs, which serve as the nerve centers for urban management. These centers utilize data and technologies like AI, IoT, and data analytics to improve real-time city operations, including traffic management, waste management, public safety, and water supply. During the COVID-19 pandemic, many ICCCs were effectively repurposed as "war rooms" for monitoring and managing the crisis.
  • ICT Integration: Examples include over 84,000 CCTV surveillance cameras installed for public safety, 1,740+ km of smart roads, and 713 km of cycle tracks developed for smart mobility. Water supply systems spanning over 17,026 km are monitored via SCADA, reducing non-revenue water. In education, 9,433 smart classrooms and 41 digital libraries have been established.
  • Citizen Engagement: The Mission has emphasized citizen participation through various platforms, promoting feedback mechanisms and ensuring that urban development aligns with the needs and aspirations of local communities. Initiatives like 'Cycles4Change' and 'Streets4People' encouraged public participation in creating safer and more accessible urban spaces.

4. Current Status and Challenges

The initial completion deadline for the Smart Cities Mission was set between 2019 and 2023 for cities selected in phases. However, due to various on-ground complexities, the deadline was extended multiple times, with the latest extension concluding on March 31, 2025. As of this deadline, while 93% of the total projects are reported as complete, only 18 out of 100 cities have successfully completed all their smart city projects. Cities like Agra, Varanasi, Madurai, Coimbatore, Udaipur, Pune, Surat, and Vadodara are among those that have fully implemented their initiatives.

Regarding funding, out of the total ₹1,64,545 Crore allocated for projects, approximately ₹1,50,285 Crore has been utilized for completed projects. Despite high utilization rates, challenges persist, particularly in smaller cities that often struggle with planning capacity, staffing, and vendor selection. Land acquisition issues, legal disputes, and the need for continuous private investment remain common hurdles. The overall progress varies significantly across states and cities, with some states like Uttar Pradesh, Karnataka, and Madhya Pradesh showing higher completion rates compared to others.

Moving forward, while the Mission's initial phase formally concludes, the way forward involves ensuring the sustainability and operational efficiency of the implemented projects. Lessons learned from the Smart Cities Mission are crucial inputs for future urban development programs and for the comprehensive Gati Shakti National Master Plan, which aims for integrated infrastructure planning crucial for India's economic ambitions.

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