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Smart City Mission

Posted 22 Aug 2024

Updated 29 Aug 2024

3 min read

Why in the News?

Government extended Smart Cities Mission till 31st March 2025

Objectives

Salient features

  • Promote cities with smart solutions for core infrastructure, sustainability, and quality of life through the application of ‘smart solutions’.
  • Drive growth through comprehensive development of social, economic, physical, and institutional aspects.
  • Create replicable models for sustainable, inclusive urban development to inspire other cities.
  • Ministry: Ministry of Housing and Urban Affairs (MoHUA).
  • Launch year: 2015
  • Valid Till: 31st March 2025
  • Type: Centrally Sponsored Scheme
  • Funding: The Union Government provides on an average Rs.100 crore per city per year.
    • An equal amount on a matching basis is to be provided by the State/ULB.
    • Additional resources mechanism includes grants under the Finance Commission, innovative finance mechanisms (Municipal Bonds), government programs and borrowings.
  • Selection Process: 100 Smart Cities have been selected based on the idea of Competitive and Cooperative Federalism. 
    • Stage 1 of the competition: Shortlisting of cities by States. 
      • Cities are distributed among the States and UTs on the basis of an equitable criterion. In this Stage, the competition was intra-state.
    • Stage 2 of the competition: The Challenge round for selection
      • Each of the potential Smart Cities prepared their proposals for participation in the ‘City Challenge’ to competes for selection as a Smart City.
  • Special Purpose Vehicle (SPV): Implementation of the Smart Cities Mission is being done by a SPV. 
    • The SPV will plan, appraise, approve, release funds, implement, manage, operate, monitor and evaluate the Smart City development projects.
    • It is set up at the city level in the form of a limited company under the Companies Act, 2013.
    • It is promoted by the State/UT and the Urban Local Body (ULB) jointly both having 50:50 equity shareholding.
      • Private entities may invest, but the State/UT and ULB must retain majority control.
    • Funds provided by the Government of India in the SCM to the SPV will be in the form of tied grant and kept in a separate Grant Fund.
  • Strategy: 
    • Adopted three models of area-based developments:
      • Retrofitting (city improvement)
      • Redevelopment (city renewal)
      • Greenfield (city extension)
    • Along with area-based development, a pan-city initiative is also used.
      • It envisages the application of selected smart solutions to the existing city-wide infrastructure.
  • Convergence with Other Government Schemes: With schemes such as AMRUT, Swachh Bharat Mission (SBM), National Heritage City Development and Augmentation Yojana (HRIDAY),etc.
  • Integrated Command and Control Centres (ICCC): ICCCs in 100 Smart for evidence-based policy and decisions.
    • Provides several online services to citizens in areas of traffic management, health, water etc.
  • Current status: As on 03rd July 2024, the 100 Cities have completed 7,188 projects (90% of total projects).
An infographic image showing 6 Fundamental Principles of the Smart Cities in the context of India namely, Community at the Core; More for Less; Cooperative & Competitive Federalism; Integration, Innovation, & Sustainability; Technology as means, not the goals; and Sectorial and Financial Convergence.
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