Smart Cities Mission

About

The Smart Cities Mission (SCM) was launched on 25 June 2015 by the Ministry of Housing and Urban Affairs (MoHUA) to improve the quality of life in 100 selected Indian cities through better infrastructure, technology-enabled governance, sustainable development and citizen-centric solutions. The Mission seeks to create economically vibrant, inclusive, sustainable and resilient urban spaces that can serve as replicable models for other cities.

A Smart City is not merely a technology-driven city; rather, it integrates technology, quality infrastructure, efficient governance and citizen participation to improve overall urban outcomes and the quality of life of its residents.

Objectives

The major objectives of SCM are to:

• Improve quality of life and ease of living through better urban infrastructure and services.
• Promote sustainable and inclusive urban development.
• Improve mobility, water supply, sanitation, waste management and public safety.
• Promote technology-enabled governance and real-time decision-making.
• Encourage citizen participation in urban planning and development.
• Create replicable models of urban transformation that can be scaled to other cities.

NITI Aayog’s assessment found that SCM is strongly aligned with national urban priorities and citizen needs and contributes to several SDGs, particularly those related to sustainable and inclusive cities.

Funding Pattern

SCM was designed as a Centrally Sponsored Scheme.

• The Government of India provided ₹500 crore per city over the mission period.
• The State Government/Urban Local Body (ULB) was expected to provide a matching contribution of ₹500 crore.
• Thus, the core public funding was designed around approximately ₹1,000 crore per city.
• Additional resources could be mobilised through PPP, municipal bonds, convergence with other schemes and other sources.

Overall Central Allocation

The total allocated union budget for the Smart Cities Mission was ₹47,652 crore. By March 31, 2025, 99.44% of the total budgeted outlay has been released to 100 cities in the mission. The centre’s share is supplemented by other sources of funding such as contributions by the state governments, urban local bodies, public-private partnerships, etc., making the total investment 1.64 lakh crores.

Smart Cities Approach: The Mission follows two complementary approaches:

A. Area-Based Development (ABD)

Instead of attempting to transform the entire city simultaneously, selected areas are comprehensively developed. It includes three models:

·       Retrofitting: Existing built-up areas are improved by introducing better infrastructure and smart solutions.

·       Redevelopment: Existing areas are demolished/rebuilt or substantially restructured to create better planned urban spaces.

·       Greenfield Development: New areas are developed from scratch with planned infrastructure and smart urban systems.

B. Pan-City Development

Technology-based solutions are implemented across the wider city, rather than being restricted to one area. Examples include:

• Intelligent traffic management.
• Integrated Command and Control Centres.
• Smart water management.
• CCTV-based public safety.
• Intelligent transport systems.
• Digital governance.

Special Purpose Vehicle (SPV): To ensure structure for programme implementation, promoting multiple sources of funding for projects and engaging citizens.

Selection Criteria of Smart Cities : The selection of 100 Smart Cities followed a two-stage competitive process:

·       Stage 1(State-Level Competition): States/UTs shortlisted cities based on their existing infrastructure, institutional capacity, population, urbanisation, financial and administrative capacity, implementation potential and past performance. The process ensured equitable representation, with at least one city selected from each State/UT.

·       Stage 2 (National-Level City Challenge): Shortlisted cities prepared Smart City Proposals (SCPs) covering their vision, area-based development, pan-city solutions, citizen participation, financial feasibility, implementation strategy and expected outcomes. These proposals were then evaluated through a national-level competitive challenge.

Key Features

·   Integrated Command and Control Centres (ICCCs)

o   All 100 Smart Cities established ICCCs, which function as technology-enabled nerve centres for urban management.

o   Integrated Command and Control Centres (ICCCs) integrate data on traffic, public safety, water supply, waste management, disaster management and citizen services to enable real-time and coordinated urban governance. As of 2026, the Government reported that ICCCs had been established in all 100 Smart Cities.

·   Technology-Enabled Governance: The Smart Cities Mission promotes technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), Geographic Information Systems (GIS), Supervisory Control and Data Acquisition (SCADA), CCTV and sensor networks, and data analytics to enable real-time monitoring, efficient service delivery and evidence-based decision-making in urban governance.

·   Citizen-Centric Development: Citizen participation is an important component of Smart City Proposals, with the Mission encouraging citizens to identify local problems, participate in designing solutions, provide feedback and monitor the delivery of urban services.

·   Smart Mobility: Smart Cities Mission projects include smart roads, intelligent traffic management systems, improved public transport, dedicated cycle tracks, pedestrian-friendly infrastructure and integrated mobility solutions to enhance urban mobility and connectivity.

·   Smart Water Management: Technology such as SCADA is used to monitor water supply networks, detect leakages and improve efficiency.

·   Public Safety: The Smart Cities Mission has strengthened urban safety and emergency response through measures such as CCTV surveillance, emergency call boxes, public-address systems and integrated command and control centres.

·   Sustainable Urban Development: The Smart Cities Mission promotes green spaces, cycling and pedestrian infrastructure, efficient waste management, energy efficiency, water conservation and heritage conservation to support sustainable, inclusive and environmentally resilient urban development.

Major Achievements

According to the latest MoHUA/PIB data as of 31 March 2026:

• 8,064 projects worth approximately ₹1.65 lakh crore were taken up.
• 7,790 projects, representing around 97% of the projects, worth ₹1,56,257 crore had been completed.

Other Major Outcomes

• 100 ICCCs established.
• 83,000+ CCTV cameras installed.
• 1,300+ public-space projects completed.
• 484 heritage sites conserved.
• More than 17,000 km of water-supply networks monitored through SCADA.

Conclusion

The Smart Cities Mission represents a shift from conventional infrastructure-led urban development towards technology-enabled, integrated and citizen-centric urban governance. Its high project-completion rate and nationwide ICCC network demonstrate significant progress. However, the next phase must ensure that “smartness” translates into inclusive, sustainable and measurable improvements in everyday urban life.

FAQs

1. How were the 100 Smart Cities selected?
Ans: Cities were selected through a two-stage competitive process involving State-level shortlisting followed by a national-level Smart City Challenge.

2. What is Area-Based Development (ABD)?
Ans: ABD focuses on transforming a selected area of the city through retrofitting, redevelopment or greenfield development.

3. What is a Pan-City Solution?
Ans: It involves applying technology-based solutions across the wider city, such as intelligent traffic management, smart water systems and digital governance.

4. What is the role of citizen participation in SCM?
Ans: Citizens participate in identifying local problems, designing solutions, providing feedback and monitoring urban services.

5. What is the main objective of the Smart Cities Mission?
Ans: The Mission aims to improve quality of life, urban infrastructure, governance and sustainability through technology-enabled and citizen-centric urban development.