What is the Smart Cities Mission?

The Smart Cities Mission (SCM) was launched by the Government of India on June 25, 2015 by Prime Minister Narendra Modi, with the objective of promoting sustainable and inclusive urban development by creating replicable models that could serve as lighthouses for other cities. The mission selected 100 cities across India through a competitive process (the India Smart City Challenge) conducted in four rounds between 2016 and 2018. It was implemented by the Ministry of Housing and Urban Affairs (MoHUA).

Each selected city established a Special Purpose Vehicle (SPV) -- a limited company headed by a CEO -- to plan, implement, manage, and operate smart city projects. The mission focused on two strategic components: (1) Area-Based Development (ABD) -- transforming a specific area through retrofitting, redevelopment, or greenfield development; and (2) Pan-City Solutions -- using technology, information, and data to improve infrastructure and services across the entire city (smart traffic management, integrated command centres, smart water and waste management, etc.).

The mission had a total outlay of Rs 48,000 crore from the Central Government (Rs 500 crore per city on average), with an equal contribution expected from states and urban local bodies, plus additional funds from PPP models and convergence with other schemes. The mission originally had a deadline of June 2024, which was extended to March 31, 2025, and the project was officially closed on that date.

Key Features

# Feature Details
1 Launched June 25, 2015
2 Cities Selected 100 (through competitive challenge in 4 rounds)
3 Nodal Ministry Ministry of Housing and Urban Affairs (MoHUA)
4 Central Outlay Rs 48,000 crore (~Rs 500 crore/city)
5 Total Project Value Rs 1.64 lakh crore (8,067 projects across 100 cities)
6 Implementation Special Purpose Vehicle (SPV) in each city
7 Two Components Area-Based Development (ABD) + Pan-City Solutions
8 Mission Closed March 31, 2025

Current Status / Latest Data

  • As of May 2025, 7,555 projects (94%) out of 8,067 have been completed, valued at Rs 1,51,361 crore.
  • 512 projects worth Rs 13,043 crore remain in advanced stages of implementation.
  • Only 18 cities (including Agra, Varanasi, Madurai, Coimbatore, Udaipur, Pune, Surat, Vadodara) have completed all their projects.
  • 99.44% of the total budgeted outlay has been released to the 100 cities.
  • Key achievements include Integrated Command and Control Centres (ICCCs) in all 100 cities, smart roads, public Wi-Fi, and improved water and waste management systems.
  • Critics note that many projects remain incomplete, the mission was largely top-down with inadequate citizen participation, and benefits were concentrated in selected pockets rather than entire cities.

UPSC Exam Corner

Prelims: Key Facts

  • Launched: June 25, 2015; closed: March 31, 2025
  • 100 cities selected through competitive challenge
  • Central outlay: Rs 48,000 crore; total projects: Rs 1.64 lakh crore
  • SPV model for implementation in each city
  • Two components: ABD (area-specific) + Pan-City Solutions (technology-driven)
  • 94% projects completed as of May 2025; 18 cities fully completed

Mains: Probable Themes

  1. Assessment of the Smart Cities Mission -- achievements vs. unmet expectations after a decade
  2. Urban governance reform: SPV model vs. elected municipal bodies -- accountability issues
  3. Digital urban infrastructure -- ICCCs, smart traffic, data-driven governance as lessons for future urbanization
  4. Inclusive smart cities: Did the mission benefit urban poor and informal settlements?
  5. Future of urban India: What comes after SCM -- need for a comprehensive National Urban Policy

Sources: Smart Cities Mission Portal, PIB - 10 Years of Smart Cities Mission, Down to Earth - Smart Cities Completion Assessment