Central government extends Smart Cities Mission till March 2025

The government of India has extended the centrally sponsored Smart Cities Mission until 31 March 2025. The scheme was originally to end on 30 June 2024.

The scheme was extended by the central government at the request of the state governments. No new projects will be sanctioned, and the existing sanctioned projects will be completed on a priority basis.

About the Smart Cities Mission

The Smart Cities Mission was officially launched by the Prime Minister Narendra Modi on 25 June 2015. The scheme aims to provide core infrastructure, a clean and sustainable environment, and a decent quality of life to its citizens through the application of ‘smart solutions’. 

One hundred cities across the country were selected in a two-stage competition. 

The Union Ministry of Housing and Urban Affairs is the nodal body for the Smart Cities Mission.

Uttar Pradesh has a maximum of 13 cities under the Smart Cities Mission, followed by 12 in Tamil Nadu and 10 in Maharashtra.

Funding pattern of the Smart Cities Mission

The Smart Cities Mission is a centrally sponsored scheme. The central government's commitment was to provide Rs 48,000 crore over a five-year period, an average of Rs 100 crore per city per year.

The state government and urban local bodies were to provide matching contributions. Additional funds were to be raised by the state government and the urban local bodies to fund the projects under the mission. 

The projects are implemented by Special Purpose Vehicles created by the concerned urban local bodies.

The projects under the Smart Cities Mission are to be developed through private-public Partnerships (PPP).

Why has the scheme been extended?

According to the government of India, as of 3rd July 2024, 7188 projects in 100 cities have been completed, amounting to Rs 1,44,237 crore. The balance of 830 projects, amounting to Rs 19,926 crore, are also in the advanced stages of completion and have been delayed due to various factors.

As of 3rd July 2024, the government of India has released Rs 46,585 crore of the Rs 48,000 crore allocated for the scheme. 

The rest of the amount will be released to the state government so that they can complete the ongoing projects on time. No new project will be funded, and the state government must complete the work by 31 March 2025. 
Union Minister for Housing and Urban Affairs: Manohar Lal Khattar