Smart Cities Mission Concludes with 94.7% Project Completion
The Smart Cities Mission (SCM), launched on June 25, 2015, officially ended on March 31, 2025, after three extensions from its original 2021 deadline. As of July 31, 2025, 7,636 out of 8,063 sanctioned projects were completed, representing a 94.7% completion rate and an expenditure of ₹1.53 lakh crore. However, 7% of projects worth ₹14,357 crore remain ongoing, and only 18 of the 100 cities achieved 100% project completion by March 2025.
Funding and Institutional Framework
The SCM was a centrally sponsored scheme with a central outlay of ₹48,000 crore, matched by state and urban local body (ULB) shares, bringing the total project size to approximately ₹1.64 lakh crore through convergence, public-private partnerships (PPP), and municipal bonds. Each city established a Special Purpose Vehicle (SPV) as a private company under the Companies Act 2013, with 50:50 equity between the state and ULB. This model was designed for agile, professional execution outside traditional municipal bureaucracy.
Sectoral Spending and Key Achievements
The largest expenditure categories were water and sanitation (₹46,730 crore) and smart mobility (₹37,362 crore), together accounting for nearly 50% of total outlay. Other sectors included 573 smart energy projects, 1,162 WASH projects, and 180 PPP projects. A mandatory pan-city project for all 100 cities was the Integrated Command and Control Centre (ICCC), completed at a cost of ₹11,775 crore. According to government and SBI reports, crime rates dropped by 27% in high-utilisation states, and air quality improved by 23% compared to non-smart cities. NITI Aayog's September 2025 assessment noted a 93% completion rate and highlighted ICCCs for improving mobility, safety, and environmental monitoring. Top-performing cities included Indore (₹3,759 crore spent), Raipur (342 projects completed), and Pune/Vellore (highest cost per project).
Relevance and Impact of the Mission
India's urban population, currently 35%, is projected to reach 600 million by 2036, with cities contributing 70% of GDP but facing significant infrastructure deficits. The SCM introduced institutional innovation through SPVs, which demonstrated the ability to execute complex multi-sector projects. The Ministry of Housing and Urban Affairs (MoHUA) plans to repurpose these SPVs for five roles: technology support, project implementation, consulting, research, and investment facilitation. ICCCs created city-level data dashboards for traffic, disaster management, and solid waste tracking, and were used during the COVID-19 pandemic for monitoring. The mission also financialized ULBs, raising ₹60,000 crore via PPP, bonds, and borrowings—described by Deloitte as a "big achievement." The SCM directly targets SDG 11 (Sustainable Cities) and links with AMRUT, SBM-U, and Digital India.
Failures and Criticisms
Despite its achievements, the SCM faced several criticisms. Only 31 cities were "transformed" according to an RTI response, and 7% of projects remained incomplete. Regional disparities were evident: Port Blair achieved only 50% completion, while Silvassa and Kavaratti lagged. Northeastern cities like Aizawl, Shillong, and Itanagar had low completion ratios, and Telangana left 22.93% of its funds unutilised. The SPV model faces uncertainty as central funds ceased after March 2025, leaving states to decide whether to continue SPVs or merge them with ULBs; Chandigarh's SPV was dissolved in December 2024. Critics argue that the mission's focus on Area-Based Development (ABD) covered only small enclaves rather than city-wide basic services, leading to an "elite bias." A common criticism is that "tech does not equal liveability," as top tech cities did not rank highest in overall liveability. Cost overruns were flagged for ongoing projects in Kalyan-Dombivli, Thane, and Dehradun.
Successor Framework and Future Outlook
MoHUA's Advisory 27, dated June 10, 2025, outlines the successor framework: SPVs are to be repurposed for new urban priorities rather than disbanded; states must fund incomplete projects from their own resources; integration with schemes like AMRUT 2.0, SBM-U 2.0, and PM Gati Shakti is encouraged; and the National Urban Digital Mission will scale ICCC technology. The SCM's legacy includes institutional innovation, data governance, and financialization of ULBs, but its shortcomings highlight the need for more inclusive and comprehensive urban development strategies.
