1. Concept & Genesis
Launched on 25 June 2015, SCM was a Centrally Sponsored Scheme to develop 100 cities as “smart” — using tech, data, and citizen participation to improve core infrastructure and quality of life.
Core principles:
Area-Based Development (ABD): Retrofit, redevelop, or greenfield 500+ acres per city. Not whole-city development
Pan-City Solutions: ICT-based smart solutions like Integrated Command & Control Centres (ICCCs) in all 100 cities
SPV Model: Each city set up a Special Purpose Vehicle as a private company under Companies Act 2013, with 50:50 state-ULB equity. Designed for agile, professional execution outside municipal bureaucracy.
Funding: ₹48,000 Cr from Centre + matching state/ULB share. Total project size Rs ₹1.64 lakh Cr via convergence, PPP, municipal bonds.
2. Scale & Achievements 2015-2025
Physical progress:
– Projects: 8,063 sanctioned. As of July 31, 2025: 7,636 completed = 94.7%, worth ₹1.53 lakh Cr
– Cities: Only 18 of 100 completed 100% projects by Mar 2025. 43 near completion
– ICCCs: 100% completed in all 100 cities at ₹11,775 Cr — the only common project
Sectoral spend: Water/Sanitation ₹46,730 Cr + Smart Mobility ₹37,362 Cr = ∼50% of total outlay. Others: Smart energy 573 projects, WASH 1,162 projects, PPP 180 projects.
Impact claimed by govt/SBI:
– Crime down 27% in high-utilisation states
– Air quality improved 23% vs non-smart cities
– NITI Aayog Sept 2025: 93% completion rate, ICCCs improved mobility, safety, environment.
Top performers: Indore spent ₹3,759 Cr, Raipur completed 342 projects, Pune/Vellore highest cost/project.
3. Relevance: Why SCM Mattered
1. Urbanization pressure: India 35% urban, projected 600 Mn by 2036. Cities contribute 70% GDP but face infra deficits.
2. Institutional innovation: SPVs showed ability to execute complex, multi-sector projects. MoHUA wants to repurpose them for 5 roles: tech support, project implementation, consulting, research, investment facilitation
3. Data governance: ICCCs created city-level data dashboards for traffic, disasters, solid waste. Used during COVID-19 for tracking.
4. Financialization of ULBs: ₹60,000 Cr raised via PPP, bonds, borrowings — a “big achievement” per Deloitte
5. SDG linkage: Directly targets SDG 11: Sustainable Cities. Links to AMRUT, SBM-U, Digital India.
4. Successor, Failures & Criticisms
Mission ended: Financial closure on 31 Mar 2025 after 3 extensions from original 2021 deadline. No new budget from 2025-26
Key failures/shortcomings:
Incomplete coverage: Only 31 cities “transformed” per RTI. 7% projects worth ₹14,357 Cr still ongoing as of Mar 2025.
Regional disparity: Port Blair 50% complete, Silvassa/Kavaratti lagging. NE cities like Aizawl, Shillong, Itanagar have low ratios. Telangana 22.93% funds unutilised.
SPV uncertainty: No central funds post-Mar 2025 for SPV operations incl. ICCCs. States to decide: continue SPVs or merge with ULBs. Chandigarh SPV dissolved Dec 2024.
Elite bias: Focus on ABD covered small areas, not city-wide basic services. Critics argue “tech ≠ liveability” — top tech cities not top in overall rankings.
Cost overruns: Ongoing projects costlier than completed ones. Kalyan-Dombivli, Thane, Dehradun flagged.
Successor framework: MoHUA Advisory 27 dated 10 June 2025:
1. SPVs repurposed for new urban priorities, not disbanded
2.*States to fund incomplete projects from own resources
3. Integration with schemes like AMRUT 2.0, SBM-U 2.0, PM Gati Shakti
4. National Urban Digital Mission to scale ICCC tech.
5. UPSC Exam Angle: Probable Questions
Prelims:
1. SPVs under SCM are registered under which Act?
2. What %age of projects were completed by Mar 2025?
3. Which project is mandatory for all 100 smart cities?
4. Total central outlay for SCM?
Mains GS2/GS3:
1. Smart Cities Mission focused on enclaves rather than inclusive urbanization.” Critically analyse SCM’s approach to urban governance.
2. Evaluate the role of Special Purpose Vehicles in urban transformation. Should they replace ULBs?
3. Discuss how SCM’s Integrated Command & Control Centres can aid disaster resilience and urban planning. Link with Sendai Framework.
4. SCM ended in 2025 with 7% projects pending. Examine challenges in urban scheme implementation and suggest reforms for future missions.
5. Case Study: Given rapid urbanisation, compare SCM with AMRUT 2.0 and suggest a framework for India’s next urban mission.
Essay: “Technology is a useful servant but a dangerous master” – Discuss in context of Smart Cities.
Key terms to use: Area-Based Development, Integrated Command & Control Centre, SPV, SDG 11, New Urban Agenda, 74th CAA, Competitive Federalism, Digital divide.
