Last Updated: 16 Oct 2025

Smart Cities Mission

Smart Cities Mission aims to develop 100 citizen-friendly and sustainable cities by promoting smart solutions, efficient infrastructure, and inclusive urban growth through Special Purpose Vehicles (SPVs) and innovative models of urban development.

Quick facts

  • Purpose: To develop 100 smart cities and make them citizen friendly
  • Type: Centrally Sponsored Scheme
  • Smart cities: There is no standard definition of a smart city.
  • Implementing Agency: Special Purpose Vehicle (SPV)

Objectives         

  • To promote cities and provide core infrastructure, clean and sustainable environment through the application of 'smart solutions'. 
  • To drive economic growth and improve quality of life through comprehensive work on social, economic, physical and institutional pillars of the city.
  • To create replicable models which act as lighthouses to other aspiring cities.

Salient features 

  • Background: Launched on June 25, 2015, the Smart Cities Mission aims to enhance the quality of life in 100 cities through efficient services, robust infrastructure, and sustainable solutions, addressing housing, transport, education, healthcare, and recreation to create model urban spaces.
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  • Equitable criteria for Selection of Cities: Equal weightage is given to urban population and the number of statutory towns in the State/UT.
  • Approach of the Smart City Mission: Implementing the Smart City Mission is carried out primarily through two approaches:
    •  Area-Based Development (ABD): Targeted interventions in selected areas. 
    • Pan-City Projects: Citywide technology-driven solutions. 
  • Special Purpose Vehicle (SPV): Formed as a limited company under the Companies Act, 2013 at the city-level with 50:50 equity from State/UT and ULB.
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  • Functions: Plan, appraise, approve, release funds, implement, manage, operate, monitor, etc. 
  • Funding: Rs 48,000 crore by the Union Govt (Rs100 crore per city per year from FY15 to FY20)).
    • Matching contribution from State/ULB + additional funds (Municipal Bonds, etc.).
    • Additional resources are to be raised through convergence, from ULBs' own funds, grants under Finance Commission, Municipal Bonds, etc.
  • Public Private Partnerships (PPP): PPP is emphasized to leverage private sector. 
  • Integrated Control and Command Centres (ICCC): Active in all 100 Smart Cities for traffic, health, water, and security.
  • The India Smart Cities Award Contest (ISAC): Recognizes cities and projects that promote sustainable and inclusive urban growth.
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