The Smart Cities Mission (SCM) is one of India’s flagship initiatives aimed at transforming urban centers into technology-driven, sustainable, and citizen-friendly cities. Launched on 25 June 2015 by the Ministry of Housing and Urban Affairs (MoHUA), the mission focuses on improving the quality of life, ensuring efficient urban services, and promoting sustainable and inclusive development.
A “smart city” integrates digital technologies, data analytics, and efficient planning to manage urban resources, infrastructure, and services effectively. The ultimate goal is to develop urban centers that are eco-friendly, resilient, and citizen-centric while creating replicable models for other cities in India.
Why was the Smart Cities Mission Launched?
India is witnessing rapid urbanization, and the growth of cities has brought numerous challenges such as traffic congestion, pollution, inadequate water supply, waste management issues, and housing shortages. To address these challenges and improve livability in urban areas, the Smart Cities Mission was launched with multiple objectives:
- Core Infrastructure: Ensure continuous water, electricity, sanitation, and waste management.
- Urban Mobility: Improve public transport and promote non-motorized transport.
- Governance: Enhance e-governance, transparency, and citizen participation.
- Sustainable Environment: Integrate clean energy, green infrastructure, and waste management.
- Affordable Housing: Provide homes for economically weaker sections.
- Economic Growth: Generate employment and increase incomes.
- Replicable Models: Create benchmarks for other cities to follow.
What are the Components of the Smart Cities Mission?
The mission adopts a two-pronged approach consisting of Area-Based Development (ABD) and Pan-City Solutions.
| Feature | Area-Based Development (ABD) | Pan-City Solutions |
| Focus | Targeted interventions in specific areas of a city | Technology-driven solutions applied across the entire city |
| Purpose | Improve efficiency, infrastructure, and sustainability in selected zones | Enhance overall city efficiency, governance, and service delivery |
| Models/Components | 1. Retrofitting: Upgrade existing infrastructure (e.g., Ahmedabad)2. Redevelopment: Replace old structures (e.g., Bhendi Bazar, Mumbai)3. Greenfield development: Develop new urban areas with smart solutions (e.g., New Town Kolkata, Naya Raipur, GIFT City) | 1. Integrated Command and Control Centres (ICCCs): Real-time monitoring of traffic, water, energy, and public safety2. Intelligent Transport Management Systems (ITMS): Smart traffic control and mobility solutions3. Digital governance systems: E-governance and service delivery platforms |
| Coverage | Specific parts of the city | Entire city |
| Technology Integration | Moderate; mainly focused on infrastructure improvements | High; ICT, AI, IoT, and data analytics integrated across services |
| Examples | Ahmedabad (Retrofitting), Bhendi Bazar Mumbai (Redevelopment), New Town Kolkata (Greenfield) | ICCCs in 100 cities, ITMS, digital governance platforms |
How are Cities Selected Under the Mission?
Cities were chosen through a competitive process, also known as “Competitive Federalism”, between 2016 and 2018. Selection criteria included:
- Urban population size
- Number of statutory towns in the state
- Economic and social indicators
- Potential for implementing scalable and replicable smart solutions
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What is the Governance Structure of the Smart Cities Mission?
Each selected city implements projects through a Special Purpose Vehicle (SPV), a separate legal entity under the Companies Act, 2013. Key features of SPVs include:
- 50:50 equity between the state/UT and the Urban Local Body (ULB).
- Planning, appraisal, and monitoring of projects.
- Fund release and accountability for project execution.
- Coordination with central and state governments and private partners.
The SPV model has been criticized for bypassing elected city councils, leading to governance challenges and reduced public participation.
How is the Smart Cities Mission Funded?
The mission is a Centrally Sponsored Scheme (CSS), primarily funded by:
- Central and State government cost-sharing (50:50 ratio)
- Convergence with other government schemes (AMRUT, PMAY-U, Swachh Bharat Mission)
- Public-Private Partnerships (PPPs)
- Municipal bonds and loans from financial institutions
The central government allocated ₹48,000 crore for the initial five years, with each city receiving ₹100 crore annually, supplemented by additional financing mechanisms.
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What are the Key Achievements of the Smart Cities Mission?
As of July 2025, the mission has achieved significant milestones:
| Aspect | Key Achievements |
| Infrastructure Development | – 1,740 km of smart roads and 713 km of cycle tracks developed – 1,320+ public space projects including parks and recreational zones – Smart water management with SCADA technology for 17,026 km pipelines – 1,370 MLD sewage treated and reused across 28 cities |
| Digital Governance & Public Safety | – 100 ICCCs operational for traffic, waste, health, and disaster management – 84,000+ CCTV cameras installed for surveillance – Smart traffic systems including automatic number plate recognition |
| Social Infrastructure | – 9,433 smart classrooms in government schools – 41 digital libraries established across smart cities – 172 e-health centers and 152 health ATMs for accessible healthcare |
| Renewable Energy & Sustainability | – Floating solar plants in Visakhapatnam generating 3,613 MWh annually – Promotion of green infrastructure and energy efficiency measures |
| Economic Growth | – Cities like Surat became global trade hubs for textiles and diamonds – Increased domestic and foreign investment due to improved urban competitiveness |
What Challenges has the Mission Faced?
Despite its successes, SCM has faced several challenges:
| Aspect | Key Details |
| Limited Coverage | ABD covers only 3–5% of city areas, excluding large populations, especially the urban poor. |
| Project Delays & Cost Overruns | Some projects experienced 2–3 year delays with cost overruns up to 40%. |
| Governance Issues | Frequent SPV CEO transfers and irregular advisory forums hinder project execution.Bypassing elected municipal councils reduced citizen engagement. |
| Funding Constraints | Only 6% of projects funded through PPPs instead of recommended 21%.Smaller states and UTs received less than 50% of allocated central funds. |
| Digital Divide | Limited internet access in smaller cities (~45%), restricting reach of smart services. |
| Sustainability Concerns | Less than 35% of cities incorporated green infrastructure or climate resilience measures. |
What are Some Smart City Success Stories?
The examples below highlight the transformative potential of smart solutions in urban India.
- Ahmedabad: Sensor-based water monitoring saved 50 MLD of water/day.
- Indore: Gravity-based sewage system prevented 205 MLD of untreated sewage from polluting rivers.
- Visakhapatnam: Floating solar plant saved 3,000+ tons of CO₂.
- Bhubaneswar: Multi-modal railway hub and high-tech traffic system.
- New Delhi: Mini-sewerage plants, smart street lighting, and city surveillance implemented.
How does the Smart Cities Mission Align with Sustainable Development Goals (SDGs)?
SCM contributes to 15 out of 17 SDGs, including:
- SDG 6: Clean water and sanitation
- SDG 7: Affordable and clean energy
- SDG 11: Sustainable cities and communities
- SDG 13: Climate action
By integrating technology, governance, and sustainability, smart cities help India meet its urban development targets.
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What Steps are Suggested for Improving the Smart Cities Mission?
To ensure long-term success, experts and government reports recommend:
- Expand Beyond ABD: Implement city-wide solutions for inclusive development.
- Strengthen Urban Local Bodies (ULBs): Capacity building, training, and administrative autonomy.
- Bridge the Digital Divide: Enhance internet and ICT infrastructure in Tier-2 and Tier-3 cities.
- Climate-Resilient Planning: Promote green buildings, clean mobility, and nature-based solutions.
- Enhance Citizen Participation: Use ICT tools for transparency, monitoring, and feedback.
- Sustainable Financing: Increase PPPs and municipal bonds to complement government funds.
- Integrate with Other Missions: Align SCM with AMRUT, PMAY-U, and Swachh Bharat Mission.
Key Takeaway
| Aspect | Highlights |
| Launch Year | 2015 |
| Type | Centrally Sponsored Scheme |
| Nodal Ministry | MoHUA |
| Target | 100 smart cities |
| Objectives | Core infrastructure, sustainable development, smart governance |
| Funding | ₹48,000 crore from center, matched by state; PPPs, municipal bonds |
| Implementation | SPVs at city level (50:50 equity) |
| Current Progress | 7,188/7,970 projects completed (~90%), ICCCs operational in all 100 cities |
| Challenges | Limited coverage, project delays, governance issues, digital divide |
| Success Stories | Ahmedabad, Indore, Visakhapatnam, Bhubaneswar, New Delhi |
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Questions Based on Smart Cities Mission
- When was the Smart Cities Mission launched?
a) 2014
b) 2015
c) 2016
d) 2017
e) 2018 - Which ministry is the nodal authority for SCM?
a) Ministry of Urban Development
b) Ministry of Housing and Urban Affairs
c) Ministry of Environment
d) Ministry of Commerce
e) Ministry of Transport - Which of the following is NOT a component of Area-Based Development?
a) Retrofitting
b) Redevelopment
c) Greenfield development
d) Pan-city solutions
e) Smart mobility - What is the primary function of an SPV?
a) Drafting laws
b) Implementing city projects
c) Collecting taxes
d) Managing only IT systems
e) Urban employment schemes - How much central allocation was made initially for the mission?
a) ₹24,000 crore
b) ₹48,000 crore
c) ₹50,000 crore
d) ₹60,000 crore
e) ₹100,000 crore - Which city implemented sensor-based water monitoring saving 50 MLD/day?
a) Indore
b) Ahmedabad
c) Visakhapatnam
d) Bhubaneswar
e) New Delhi - What percentage of projects is implemented through PPPs?
a) 21%
b) 15%
c) 6%
d) 50%
e) 35% - Which of the following SDGs is directly impacted by SCM?
a) SDG 1
b) SDG 6
c) SDG 9
d) SDG 14
e) SDG 17 - What is the coverage of ABD in city areas?
a) 1–2%
b) 3–5%
c) 10–15%
d) 20–25%
e) 30–35% - Which technology is primarily used in ICCCs?
a) Blockchain
b) IoT, AI, Data Analytics
c) Cryptocurrency
d) Satellite Imaging
e) RFID only
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