Context:

The Ministry of Housing and Urban Affairs has extended the Smart Cities Mission (SCM) up to March 31, 2025, to complete the remaining projects.

More on the news

• Currently, the 100 cities have completed 7,188 projects (90% of total projects) amounting to ₹1,44,237 crore as part of the mission. The balance of 830 projects amounting to ₹19,926 crore is also in the advanced stages of completion
• The cities have been informed that this extension will incur no additional costs to the government beyond the already approved financial allocation under the mission.
• The Union Ministry of Urban Development is responsible for implementing this mission in collaboration with state governments. It was expected to be completed between 2019 to 2023. 

Smart Cities Mission (SCM)

• Smart Cities Mission (SCM) was launched in June 2015 as a centrally sponsored scheme. A total of 100 cities were chosen through a competition to be developed as smart cities. 
• Under the Mission, more than 8000 multi-sectoral projects are being developed by 100 cities amounting to around ₹1.6 lakh crore under the SCM.

The SCM had two main aspects: 

• Area-based development consisting of three components —

1. redevelopment (city renewal)
2. retrofitting (city improvement)
3. green field projects (city extension);

• Pan-city solutions based on advanced Information and communication technology (ICT).

What are smart cities?

• Though there is no universally accepted definition of a Smart City, urban practitioners define it as cities built like new Silicon Valleys with a strong integration of a network of airports, highways, and other types of communications, a so-called intellectual city with advanced Information and communication technology (ICT).

Implementation of the mission 

• The implementation of the Mission at the City level is done through a Special Purpose Vehicle (SPV) created for the purpose. The SPV is a limited company incorporated under the Companies Act, 2013.
• The SPV plans, appraises, approves, releases funds, implements, manages, operates, monitors and evaluates the Smart City development projects. 
• Each smart city has an SPV which is headed by a full-time CEO and has nominees of Central Government, State Government and Urban local bodies (ULB) on its Board.