Smart Cities Mission | 22 Jan 2025

About the Smart Cities Mission 

• Smart Cities Mission: The Smart Cities Mission was launched on 25 June 2015 to improve the quality of life in 100 cities.  
  • It focuses on providing efficient services, modern infrastructure, and sustainable solutions while addressing key urban needs like housing, transport, education, and healthcare. 
• Objectives: The objectives of the mission are to provide core infrastructure and a good quality of life, ensure a clean and sustainable environment, and implement smart solutions.  
  • It aims for sustainable, inclusive development by creating compact areas that serve as replicable models for other cities. 
• Funding Mechanism: The mission is primarily funded through a 50:50 cost-sharing model between the central and state governments.  
  • The central government allocated ₹48,000 crore for five years, with each city receiving ₹100 crore per year. Additional funding is sourced through: 
    • Convergence with other government schemes. 
    • Municipal bonds and loans from financial institutions. 
    • Public Private Partnerships (PPP) to attract private investments- A key feature of the Smart Cities Mission, allowing the private sector to invest in urban infrastructure projects.  
• Smart Cities Project Approach: The Mission follows a two-pronged approach to urban development: 
  • Area-Based Development (ABD): This focuses on transforming specific areas within cities through targeted interventions. Cities implement one of the following models: 
    • Retrofitting: Upgrading existing infrastructure and services to improve urban efficiency and livability. 
    • Redevelopment: Replacing old infrastructure with modern facilities and innovative designs. 
    • Greenfield Development: Building entirely new urban areas with smart features from scratch. 
  • Pan-City Solutions: These solutions involve the implementation of technology-driven initiatives that span the entire city, enhancing overall efficiency in areas such as transportation, waste management, and governance. 
• Special Purpose Vehicle (SPV): To ensure efficient execution of the mission, each city has established a Special Purpose Vehicle (SPV).  
  • The SPV is incorporated as a limited company under the Companies Act, 2013. The State/UT and the Urban Local Body (ULB) jointly hold 50:50 equity in the SPV. The key responsibilities of the SPV include: 
    • Planning and appraisal of smart city projects. 
    • Approving and releasing funds for implementation. 
    • Monitoring and evaluating project performance and impact. 
• Selection of Cities: Cities under the mission were selected through a competitive selection process.  
  • The criteria considered included factors such as urban population size and the number of statutory towns in each state and union territory.  
  • The selection process ensured equitable representation across the country, giving equal opportunity to states and UTs in developing smart urban solutions. 
• Integrated Control and Command Centres (ICCC): ICCCs have been established in all 100 smart cities to serve as the operational nerve centers. These centers: 
  • Monitor real-time city operations, including traffic, public safety, water supply, and energy usage. 
  • Utilize cutting-edge technologies such as Artificial Intelligence (AI), Internet of Things (IoT), and Data Analytics to make informed decisions. 
  • It played a vital role as COVID-19 war rooms, aiding in pandemic response and resource allocation. 

What are the Features of Smart City Mission? 

• Smart City Features: 
  • Efficient Core Infrastructure: Ensuring adequate water supply and 24x7 electricity availability. 
    • Modern sanitation systems with smart solid waste management solutions. 
    • Affordable and sustainable housing for all socioeconomic groups. 
  • Technology Integration: Deployment of smart traffic and transport solutions to manage congestion effectively. 
    • Establishing a robust IT network to facilitate e-governance and citizen engagement. 
  • Sustainable Urban Development: Development of green spaces, parks, and eco-friendly zones to improve environmental sustainability. 
    • Adoption of clean energy solutions to minimize pollution and carbon footprint. 
  • Social and Economic Inclusion: Promoting mixed land-use policies to encourage walkable neighborhoods. 
    • Enhancing public safety and security through CCTV surveillance and smart policing.