It has been nearly 10 years since the government launched the Smart Cities Mission with the aim of improving the quality of life in 100 selected cities. Last year, the deadline for achieving this target was extended to March 31, 2025. Now, as that deadline ends, it turns out that only 18 of the 100 cities have completed all the projects that would serve as urban planning role models. The good news, though, is that only 7 per cent of the overall projects remain incomplete.
Among the cities that have fully implemented their projects are Agra, Varanasi, Madurai, Coimbatore, Udaipur, Pune, Surat, and Vadodara. The remaining 7 per cent of the incomplete projects are spread across 82 cities.
A state-wise analysis of the mission – which was launched on June 25, 2015, to address urban problems such as traffic congestion, waterlogging, pollution and inefficiencies in service delivery – reveals that Tamil Nadu and Uttar Pradesh together account for half of the 18 fully transformed smart cities, with five in Tamil Nadu and four in Uttar Pradesh.
On the other hand, Telangana has fared the worst. Of 169 projects sanctioned between its two smart cities — Greater Warangal and Karimnagar — only 108 have been completed. As of March 4, 36 per cent of the sanctioned projects here remain incomplete. Approximately 40 per cent of projects in Greater Warangal and 28 per cent in Karimnagar are still ongoing. Consequently, 22.93 per cent of the sanctioned funds for Telangana’s smart cities remain unutilised.
Several Northeastern states are also behind schedule. In strife-torn Manipur’s capital, Imphal, only 19 out of 27 sanctioned projects have been completed. Additionally, 51.85 per cent of the funds allocated for these projects are currently being used for ongoing work. Similarly, in Mizoram and Arunachal Pradesh, 45.28 per cent and 40.41 per cent of the funds, respectively, are being used in projects that are still in progress.
Other populous states such as Bihar, Andhra Pradesh, and Haryana have also recorded sub-optimal project completion and fund utilisation rates. Except for Chandigarh, Delhi, and Lakshadweep, all other Union Territories have performed poorly in these areas. In Port Blair, only seven of the 18 sanctioned projects have been completed, while over 90 per cent of the funds are tied up in ongoing projects.
The central government allocated Rs 48,000 crore in financial support over five years, with an equal amount required from the respective states and urban local bodies. The remaining funds were to be sourced from private sector partnerships, borrowings, state resources, municipal bonds, and other means.
According to a recent Rajya Sabha response from the minister of state for housing and urban affairs, 559 out of 8,063 smart city projects in India are still ongoing, with Rs 14,239 crore of the total Rs 1.65 trillion allocated being currently utilised on projects that are still in progress.
Of the Rs 1.5-odd trillion spent on smart city projects, approximately Rs 60,000 crore was raised by municipal bodies through public-private partnerships (PPP), bonds, and government-guaranteed borrowings, said Kushal Kumar Singh, partner at Deloitte India.
“This is a big achievement,” he said, adding that around 550 projects are expected to be completed within the next three to four months. “There is no major delay, and these projects have significantly benefitted the public,” he added.
However, Anshuman Magazine, chairman and CEO–India of commercial real estate consultancy CBRE, is of the view that the effectiveness of smart city projects in improving urban living conditions amid challenges such as traffic congestion, poor sewage systems, and flooding is mixed.
“While the intent is promising as the mission envisions leveraging technology to optimise urban services, the reality reveals a mix of potential benefits and implementation challenges,” he said.
The project completion pace varies from city to city and at the project level owing to varying complexities, he said, adding that technology alone cannot resolve infrastructure issues in a short span of time.
The Modi government’s flagship Smart Cities Mission was envisioned to enhance quality of life, attract people and investments, and initiate a cycle of sustainable urban growth. The strategy aimed to provide core infrastructure, a clean and sustainable environment, and efficient service delivery through inclusive development and replicable models to inspire other aspiring cities.
Originally planned as a five-year initiative, the mission saw three deadline extensions to enable cities to complete their projects. In 2021, the Ministry of Housing and Urban Affairs pushed the deadline to June 2023, then to June 30, 2024, and subsequently to March 31, 2025.
Mission’s methodology
India’s urban areas are expected to contribute 75 per cent to its economy by 2030, driven by rapid urbanisation. Recognising the need for comprehensive physical, institutional, and socio-economic infrastructure development, the government introduced the Smart Cities Mission without defining a universal standard for a ‘smart’ city.
Under the mission, the cities were to be developed using two approaches: “Area-Based Development”, where each of the selected cities designated specific areas for targeted interventions through retrofitting, redevelopment, and greenfield development; and “Pan-City Development, which applied technology-driven solutions to existing urban infrastructure.
The 100 cities were selected through competitive rounds held between January 2016 and June 2018. Special purpose vehicles (SPVs) were established to oversee implementation at the city level.
Centre’s support
Of the Rs 48,000 crore allocated by the Centre, Rs 47,538 crore had been released as of March 4, 2025. So far, Rs 45,772 crore has been utilised, leaving 3.71 per cent of the funds unspent until now.
Interestingly, Kavaratti, the capital of Lakshadweep, has completed all its projects but utilised only Rs 45 crore of the Rs 183 crore allocated by the Centre, leaving 75.41 per cent of the funds unspent. Similarly, 25.20 per cent and 21.63 per cent of funds remained unused in Itanagar and Aizawl, respectively.
Mizoram, Arunachal Pradesh, Meghalaya, Haryana, and Telangana were the only states that have not used more than 10 per cent of their allocated funds. Except for Lakshadweep, all Union Territories have shown low fund under-utilisation rates.
Economic, mobility infra
Integrated Command and Control Centres have been established in all 100 smart cities at a cost of Rs 11,775 crore. However, 10 per cent of the economic infrastructure and smart mobility projects still remain to be completed.
Water, sanitation, and hygiene (WASH) projects account for the largest expenditure, at Rs 46,730 crore, with a project completion rate of 93.14 per cent.
Smart energy projects and environmental initiatives, particularly those implemented through PPP, have seen completion rates exceeding 95 per cent. However, projects aimed at creating vibrant public spaces are far from the deadline.
Ten years on, the mission has turned some of the chosen cities smarter, but has still fallen short of target.
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Quelle/Source: Communications Today, 31.03.2025
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