Mon. Mar 23rd, 2026

The government of India has extended the centrally sponsored Smart Cities Mission until 31 March 2025. The scheme was originally to end on 30 June 2024.The scheme was extended by the central government at the request of the state governments. No new projects will be sanctioned, and the existing sanctioned Projects will be completed on a priority basis.

Smart Cities Mission

  • It is a Centrally Sponsored Scheme, launched in June 2015 to transform 100 cities to provide the necessary core infrastructure and clean and sustainable environment to enable a decent quality of life to their citizens through the application of “Smart Solutions”.
  • It aimed to improve the quality of life for citizens through sustainable and inclusive development.

Components of the SCM

Area-based Development

  • Redevelopment (City Renewal): Renewal of existing urban areas to improve infrastructure and amenities. E.g. Bhendi Bazar, Mumbai.
  • Retrofitting (City Improvement): Upgrading infrastructure in existing areas to make them more efficient and sustainable. E.g. Local Area Development (Ahmedabad).
  • Greenfield Projects (City Extension): Development of new urban areas with a focus on sustainability and smart technologies. E.g. New Town, Kolkata, Naya Raipur, GIFT City (Gujarat International Finance Tec-City).

Pan-City Solutions

  • Implementation of Information and Communication Technology (ICT) solutions across various sectors such as e-governance, waste management, water management, energy management, urban mobility, and skill development.

Governance Structure

  • To enhance effectiveness, a new governance model was adopted.
  • A Special Purpose Vehicle (SPV) was created under the Companies Act, 2013 led by a bureaucrat or a representative of a Multinational Corporations (MNC).

Financing of Smart Cities

  • The SCM receives Rs. 48,000 crores over 5 years from the Central Government, averaging Rs. 100 crore per city per year.
  • States and Urban Local Bodies (ULB) are required to contribute an equal amount, resulting in a total of nearly Rs. 1 lakh crore for Smart Cities development.

Convergence with Other Government Schemes

  • The SCM can be strategically converged with other Central and State Government programs to utilise its full potential.

Benefits of Convergence

  • Combining resources and objectives of SCM with schemes like AMRUT (urban transformation), Swachh Bharat Mission (cleanliness), HRIDAY (heritage city development), Digital India, Skill Development, and Housing for All leads to a more comprehensive approach.
  • Existing funds and infrastructure from various schemes can be leveraged to achieve common goals within the SCM framework.
  • Convergence ensures social infrastructure (health, education, culture) is addressed alongside physical infrastructure development in smart cities.

Smart City

A Smart City is a concept that refers to the use of technology, data, and innovative solutions to improve the efficiency, sustainability, and quality of life in urban areas.

Core Infrastructure Elements of a Smart City include

  • Adequate water supply,
  • Assured electricity supply,
  • Sanitation, including solid waste management,
  • Efficient urban mobility and public transport,
  • Affordable housing, especially for the poor,
  • Robust IT connectivity and digitalisation,
  • Good governance, especially e-Governance and citizen participation,
  • Sustainable environment,
  • Safety and security of citizens, particularly women, children and the elderly, and
  • Health and education.

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