Smart Cities Mission

Smart Cities Mission was launched by the Hon’ Prime Minister on 25 June, 2015. The main objective of the Mission is to promote cities that provide core infrastructure, clean and sustainable environment and give a decent quality of life to their citizens through the application of ‘smart solutions’. The Mission aims to drive economic growth and improve quality of life through comprehensive work on social, economic, physical and institutional pillars of the city. The focus is on sustainable and inclusive development by creation of replicable models which act as lighthouses to other aspiring cities. 100 cities have been selected to be developed as Smart Cities through a two-stage competition.

The Mission is operated as a Centrally Sponsored Scheme. Central Government will give financial support to the extent of Rs. 48,000 crores over 5 years i.e. 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 are to be raised through convergence, from ULBs’ own funds, grants under Finance Commission, innovative finance mechanisms such as Municipal Bonds, other government programs and borrowings. Emphasis has been given on the participation of private sector through Public Private Partnerships (PPP). Citizens’ aspirations were captured in the Smart City Proposals (SCPs) prepared by the selected cities. Aggregated at the national level, these proposals contained more than 5,000 projects worth over Rs. 2,00,000 crores, of which 45 percent is to be funded through Mission grants, 21 percent through convergence, 21 percent through PPP and rest from other sources. 

There is no standard definition or template of a smart city.  In the context of our country, the six fundamental principles on which the concept of Smart Cities is based are:

Communities  at the core of Planning and implementation

Ability to generate greater outcomes with the use of lesser resources

Cities selection through completion flexibility to implement project

Innovating methods integrated and sustainable solutions

Careful selection of technology relevant to the context of cities

Sectorial and financial convergence



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.



"100 Smart Cities Mission" was launched by Prime Minister Narendra Modi on 25 June 2015.[10] A total of ₹98,000 crore (US$14 billion) was approved by the Indian Cabinet for the development of 100 smart cities and the rejuvenation of 500 others. ₹48,000 crore (US$6.7 billion) for the Smart Cities mission and a total funding of ₹50,000 crore (US$7.0 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$980 million) for the 150 smart cities. However, only 924 crore (US$130 million) of the allocated amount could be spent until February 2015. Hence, the 2015 Union budget of India allocated only ₹143 crore (US$20 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$28 million) each during this financial year followed by ₹100 crore (US$14 million) per year during the next three years. The Urban Development Ministry had earlier released ₹2 crore (US$280,000) 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.[14] 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.[citation needed]

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.



Pan-city initiative in which at least one Smart Solution is applied city-wide

Develop areas step-by-step – three models of area-based developments





The core infrastructure elements

Adequate water supply,

Assured electricity supply,

Sanitation, including solid waste management,

Efficient urban mobility and public transport,

Affordable housing, especially for the poor,

Robust IT connectivity and digitalization,

Good governance, especially e-Governance and citizen participation,

Sustainable environment,

Safety and security of citizens, particularly women, children and the elderly, and

Health and education.


Smart Cities in Each State/UT

The total number of 100 Smart Cities have been distributed among the States and UTs on the basis of an equitable criteria. The formula gives equal weightage (50:50) to urban population of the State/UT and the number of statutory towns in the State/UT. Based on this formula, each State/UT will, therefore, have a certain number of potential Smart Cities, with each State/UT having at least one. The number of potential Smart Cities from each State/UT will be capped at the indicated number. This distribution formula has also been used for allocation of funds under Atal Mission for Rejuvenation and Urban Transformation - AMRUT. The distribution of Smart Cities will be reviewed after two years of the implementation of the Mission. Based on an assessment of the performance of States/ULBs in the Challenge, some re-allocation of the remaining potential Smart Cities among States may be required to be done by the Ministry of Urban