Smart Cities Mission SCM 2025 – Objectives, Coverage, Financing, Challenges & Way Forward

Smart Cities Mission (SCM) is a flagship initiative of the Government of India aimed at driving economic growth, sustainable urbanization, and improved quality of life for citizens. Launched in 2015 by the Ministry of Urban Development (MoUD), the mission focuses on harnessing technology, innovation, and urban planning strategies to create citizen-friendly, sustainable, and technology-driven smart cities.

A smart city is not just about technology; it is about providing core infrastructure, decent living standards, sustainable environments, efficient mobility, and digital governance. The Smart Cities Mission has become a model for urban transformation in India, covering 100 cities across the country.

Smart Cities Mission Strategy

The mission follows a two-pronged strategy:

1. Pan-City Initiative: At least one smart solution is applied city-wide (e.g., smart transport, IT-based governance).

2. Area-Based Development: Cities develop areas step by step through three models:

   • Retrofitting – Improving existing areas with smart infrastructure.

   • Redevelopment – Replacing old areas with planned layouts and advanced facilities.

   • Greenfield Development – Creating new, sustainable urban areas.

Coverage and Duration

• The Smart Cities Mission initially aimed to cover 100 cities between 2015–2020.

• The mission may continue further based on evaluation and learnings from Phase 1.

• Cities were selected through a competitive process called the Smart City Challenge.

Financing of Smart Cities Mission

The scheme is operated as a Centrally Sponsored Scheme (CSS). Apart from government funding, private sector participation and innovative financing tools such as municipal bonds are encouraged.

Progress of Smart Cities Mission

• In the first three years, 89 cities were selected under the mission.

• Cities like Pune, Bhubaneswar, and New Delhi have shown strong progress:

  • Pune: Issued smart city municipal bonds to raise funds.

  • Bhubaneswar: Developed multi-modal transport hubs and hi-tech traffic systems.

  • NDMC (Delhi): Implemented smart sewerage, Wi-Fi street lights, and city surveillance.

• However, many cities are still in the planning or early implementation stage.

• Private investment has been limited, and financial closures are delayed.

Way Forward

For successful implementation, the Smart Cities Mission must:

1. Strengthen Urban Local Bodies with technical expertise and financial autonomy.

2. Adopt a data-driven approach for transport, waste management, and housing.

3. Focus on comprehensive transformation of fewer cities at a time instead of fragmented projects.

4. Encourage greater private sector participation and innovative financing.

5. Ensure environmental protection during infrastructure development.

6. Enhance citizen participation from planning to implementation.

7. Develop replicable models for smaller towns and cities.

Conclusion

The Smart Cities Mission (SCM) is a landmark initiative in India’s urban transformation journey. While challenges remain in financing, governance, and execution, the mission has already created a framework for sustainable, citizen-centric urban development.

The way forward lies in strengthening local governance, encouraging private investment, and ensuring inclusivity so that smart cities do not become isolated islands of development. Instead, they should become replicable models of innovation, sustainability, and good governance for the entire country.

Smart cities should prioritize clean air, efficient mobility, reliable civic services, affordable housing, and digital governance—ultimately improving the quality of life for all citizens.