Smart City

Smart City

National Smart Cities Mission is an urban renewal and retrofitting program by the Government of India with the mission to develop smart cities across the country, making them citizen friendly and sustainable. The Union Ministry of Urban Development is responsible for implementing the mission in collaboration with the state governments of the respective cities. The mission initially included 100 cities, with the deadline for completion of the projects set between 2019 and 2023. The effective combined completion of all projects as of 2019 is at 11%. As of March 2022, 3577 projects out of total 6939 tendered projects have been completed, utilizing ₹60,073 crore out of total tendered amount of ₹191,294 crore.

Smart Cities Mission envisions developing an area within the cities in the country as model areas based on an area development plan, which is expected to have a rub-off effect on other parts of the city, and nearby cities and towns. Cities will be selected based on the Smart Cities challenge, where cities will compete in a countrywide competition to obtain the benefits from this mission. As of January 2018, 99 cities have been selected to be upgraded as part of the Smart Cities Mission after they defeated other cities in the challenge.

It is a five-year program in which, except for West Bengal, all of the Indian states and Union territories are participating by nominating at least one city for the Smart Cities challenge. Financial aid will be given by the central and state governments between 2017–2022 to the cities, and the mission will start showing results from 2022 onwards.

Each city will create a Special Purpose Vehicle (SPV), headed by a full-time CEO, to implement the Smart Cities Mission. Centre and state government will provide ₹1,000 crore (US$130 million) funding to the company, as equal contribution of ₹500 crore (US$63 million) each. The company has to raise additional funds from the financial markets.


"100 Smart Cities Mission" was launched by Prime Minister Narendra Modi on 25 June 2015.[11] A total of ₹98,000 crore (US$12 billion) was approved by the Indian Cabinet for the development of 100 smart cities and the rejuvenation of 500 others. ₹48,000 crore (US$6.0 billion) for the Smart Cities mission and a total funding of ₹50,000 crore (US$6.3 billion) for the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) have been approved by the Cabinet.

In the 2014 Union budget of India, Finance Minister Arun Jaitley allocated ₹7,016 crore (US$880 million) for the 150 smart cities. However, only ₹924 crore (US$120 million) of the allocated amount could be spent until February 2015. Hence, the 2015 Union budget of India allocated only ₹143 crore (US$18 million) for the project.

The first batch of 20 cities was selected. Known as 20 Lighthouse Cities in the first round of the All India City Challenge competition, they will be provided with central assistance of ₹200 crore (US$25 million) each during this financial year followed by ₹100 crore (US$13 million) per year during the next three years.[14] The Urban Development Ministry had earlier released ₹2 crore (US$250,000) each to mission cities for preparation of Smart City Plans.

Smart City Challenge

The Ministry of Urban Development (MoUD) program used a competition-based method as a means for selecting cities for funding, based on an area-based development strategy. Cities competed at the state level with other cities within the state. Then the state-level winner competed at the national level Smart City Challenge. Cities obtaining the highest marks in a particular round were chosen to be part of the mission.

The state governments were asked to nominate potential cities based on state-level competition, with overall cities across India limited to 100. In August 2015 the Ministry of Urban Development released the list of 98 nominees sent in by state governments.

All the participating cities from West Bengal (New Town, Kolkata, Bidhannagar, Durgapur, Haldia) have withdrawn from the Smart Cities Mission. Mumbai and Navi Mumbai from Maharashtra have also been withdrawn from the Smart Cities Mission.

Cities nominated by states for the smart city challenge

There are 98 nominated by states national level smart cities challenge, based on state level competition. 100 cities were supposed to be nominated but Jammu and Kashmir and Uttar Pradesh did not use one slot each.

  • Jammu & Kashmir was allocated one city but it could not submit the proposal on-time for the first round of the challenge.
  • All cities from West Bengal have withdrawn from the Smart Cities Mission.
  • Mumbai and Navi Mumbai have withdrawn from the Smart Cities Mission.
  • Uttar Pradesh and Tamil Nadu will have the most smart cities under Smart Cities Mission