Smart City Mission in India, Launch date, Ministry, Smart Cities List, UPSC Notes!

The Smart City Mission, launched on 25 June 2015 by the Ministry of Housing and Urban Affairs, aims to develop 100 cities across India into modern, sustainable urban centers by 2025. It focuses on improving infrastructure, smart technology use, and quality of life through better housing, transport, sanitation, and public services. Uttar Pradesh is a key participant, with several cities selected under this centrally sponsored scheme to boost urban development and livability.

Smart Cities Mission in India is important from the perspective of the UPSC IAS examination, and it falls under General Studies Paper 3, particularly in the Indian Economy section. This article will discuss the Smart City Mission's needs, distribution, features, and challenges.

The Smart Cities Mission in India is a topic relevant to the UPSC context under General Studies Paper III. It is a basic topic for aspirants to understand the dynamic aspect of the Smart Cities Mission in India. The Smart Cities Mission in India is a relevant topic for UPSC Civil Services because it highlights the key features of Smart Cities Mission in India, which are frequently discussed in the exam. Join UPSC Coaching today to boost your preparation. 

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What is Smart City Mission?

The Smart Cities Mission in India is a program launched by the Government of India in 2015. Smart Cities Mission in India envisions developing locations within specified cities in the country. Cities will be determined based on the Smart Cities challenge, where cities compete nationwide to help from this mission.

It is a five-year program in which the central Government gives financial assistance to the cities. The Urban Development Ministry used a competition-based approach to pick cities for funding. The state governments were asked to nominate possible towns, with the overall count across India limited to 100. A hundred cities have been chosen for an upgrade to the Smart Cities Mission in India. A special Purpose Vehicle (SPV) headed by a CEO to execute the projects under the mission will be allocated for each city.

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Why in News?

Mission Status and Deadline

• As of mid-2025, approximately 7,500 projects under the mission have been completed, with ongoing efforts on nearly 550 projects across the 100 selected smart cities.
• The total investment so far exceeds ₹1.5 lakh crore, reflecting sustained government commitment.
• While only 18 cities have fully completed all their smart city projects, many others have made significant progress in enhancing urban infrastructure, technology integration, and citizen services.
• The mission officially concluded its timeline on March 31, 2025, setting a foundation for further urban innovation and upscaling of smart solutions.

Key Achievements and Progress

• High Completion Rate: As of July 2025, roughly 95% of the total 8,063 projects under the mission have been completed, amounting to over ₹1.5 lakh crore in investment. The remaining projects are in advanced stages of implementation.
• Integrated Command and Control Centres (ICCCs): A major success has been the operationalization of ICCCs in all 100 Smart Cities. These centers function as the central nervous system for cities, using technology like AI and IoT to manage everything from traffic and public safety to water and waste management.
• Infrastructure Development: There have been significant advancements in key sectors. Over 1,740 km of smart roads and 713 km of cycle tracks have been developed. In terms of public safety, more than 84,000 CCTV cameras have been installed across the cities.
• Water and Waste Management: Technology is being used to monitor over 17,000 km of water supply systems, helping to reduce leaks. In solid waste management, over 66 cities are using technology to improve collection and routing.

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Objectives of Smart City Mission in India

The main objectives of the Smart Cities Mission in India are to promote sustainable and inclusive urban development and improve the quality of life by using technology-driven solutions. The objectives of the Smart Cities Commission are given below:

• To promote sustainable and inclusive urban development.
• Provide core infrastructure including assured water supply, electricity, sanitation, solid waste management, efficient urban mobility, affordable housing, IT connectivity, and good governance.
• Enhance quality of life, create employment opportunities, and improve incomes for all residents, especially the poor and disadvantaged.
• Foster citizen participation and e-governance through digital platforms.
• Develop replicable models of urban development that catalyze improvement in other cities.

Funding for the Smart City Project in India

The Smart Cities Mission in India is funded through a combination of central and state government grants, with additional support from private sector investment and public-private partnerships.

• Central Government-sponsored the Smart Cities Mission in India scheme. Selected cities will get financial assistance from the central government.
• The mission follows a 50:50 funding pattern between the central and state governments. The central Government provides 50% of the funding required for projects. The state or local government contributes the remaining 50%.
• The central Government has allocated Rs. 48,000 crores (approximately $6.8 billion) for the Smart Cities Mission in India.
• Cities are also encouraged to explore other sources of funding. This includes public-private partnerships (PPP), loans from financial institutions, and revenue generation through innovative financing models.

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The core elements of the Smart Cities Mission in India include efficient urban mobility, smart governance, sustainable environment, reliable infrastructure, and technology-based services to enhance citizen well-being.

• Innovative Governance: It involves using technology to improve administrative efficiency, transparency, and accountability in city governance.
• Intelligent Infrastructure: This element of intelligent infrastructure focuses on developing high-quality physical infrastructure. This includes efficient transportation systems, sustainable energy solutions, and smart buildings.
• Innovative Environment: It aims to create a clean and sustainable environment through waste management, renewable energy adoption, and conservation of natural resources.
• Innovative Economy: The mission promotes the development of a vibrant and inclusive economy. This is by attracting investments, supporting entrepreneurship, and fostering innovation.
• Smart People: This element focuses on enhancing the quality of life for citizens through improved healthcare, education, and social infrastructure.

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What are the Key Features of the Smart City Mission?

The Smart City Mission features include citizen-friendly governance, efficient public services, smart infrastructure, sustainable development, and technology integration for better quality of life in urban areas.

• The Smart Cities Mission in India takes an integrated strategy to development. It considers various aspects such as Governance, urban planning, transportation, energy, water, and waste management.
• It emphasizes data analytics and the use of technology to upgrade the effectiveness and efficiency of urban services. This includes public safety, infrastructure, and transportation.
• The mission promotes citizen participation and engagement in decision-making processes through various platforms. It enables them to provide feedback, suggestions, and ideas for improving their cities.
• The mission aims to develop environmentally sustainable and resilient cities to future challenges. This includes climate change and natural disasters.
• It adopts a focused approach by selecting specific areas within cities for comprehensive development. These are known as Smart City areas, where integrated solutions are implemented.

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What is the Criteria for Selection of Cities under the Smart City Project?

• Cities were chosen through a competitive City Challenge Process involving four rounds of selection from 2015 to 2018.
• Key selection parameters included:
  • Existing service levels and improvements (water, sanitation, electricity).
  • Institutional capacity and governance mechanisms.
  • Urban population size and number of statutory towns in each state/UT.
  • Potential for inclusive development and replicability of proposed smart solutions.
• The process ensured equitable geographical representation and state participation.

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What Approach does the Smart City Project in India Follow?

The mission adopts a two-pronged approach:

1. Area-Based Development (ABD): Focuses on targeted transformation of specific urban areas using models such as:
   • Retrofitting: Upgrading existing infrastructure to improve livability.
   • Redevelopment: Replacing old infrastructure with modern facilities.
   • Greenfield Development: Building new, planned urban areas with smart features.
2. Pan-City Initiatives: Application of smart technology-driven solutions across entire cities to improve governance, transportation, energy efficiency, and other urban services.

Implementation is managed by city-level Special Purpose Vehicles (SPVs), incorporated as limited companies jointly owned by state governments and Urban Local Bodies, responsible for project planning, funding, monitoring, and evaluation.

What Challenges does the Smart City Mission Face?

Key challenges of the Smart Cities Mission in India include funding gaps, delays in project execution, coordination issues, and limited capacity in urban local bodies to manage complex smart solutions.

• Incomplete Project Implementation: As of early 2025, only 18 cities have fully completed all projects, with many others lagging behind.
• Financial and Resource Constraints: Insufficient allocation and underutilization of funds have delayed project progress in several cities.
• Governance Issues: Lack of clear roles for elected representatives and reliance on technocratic models sometimes hindered inclusive decision-making.
• Urban Diversity Complexity: Uniform approaches neglected the unique socio-economic and spatial challenges of different cities.
• Public Participation: Inadequate involvement of local communities in planning and monitoring led to gaps in addressing citizen needs.
• Technological Barriers: Digital divide and varying capacities of Urban Local Bodies (ULBs) limited the effective deployment of smart technologies.

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Way Forward

• Expand Beyond Area-Based Development: Scale smart city interventions city-wide to benefit all urban residents, especially underserved areas.
• Strengthen Capacity of Urban Local Bodies: Enhance administrative autonomy, train municipal officials, and deploy urban planners.
• Inclusive and Participatory Governance: Increase citizen engagement through digital platforms and transparency mechanisms.
• Focus on Sustainability and Climate Resilience: Integrate green building norms, clean energy, waste management, and nature-based solutions into city planning.
• Bridging the Digital Divide: Improve digital infrastructure in Tier 2 and Tier 3 cities to make smart services accessible and equitable.
• Enable Scalability and Replication: Document and promote best practices across cities to accelerate urban transformation nationwide.

After reading this article, we hope all your doubts about the "Smart Cities Mission in India" have been addressed. Ace your UPSC preparation with Testbook. Download the Testbook App now!