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Centre extends Smart Cities Mission deadline till March 2025

Jul 03, 2024 10:02 PM IST

The government said the decision was taken following requests from several states and urban local bodies seeking time to complete the remainder of the projects

NEW DELHI: The government on Wednesday announced that the flagship Smart Cities Mission (SCM) in 100 cities will be extended till March 2025.

This is the third extension granted to the Smart Cities Mission which was launched in 2015 for a 5-year-period. (X/HamarBilaspur)
This is the third extension granted to the Smart Cities Mission which was launched in 2015 for a 5-year-period. (X/HamarBilaspur)

The decision was taken following requests from several states and urban local bodies seeking time to complete the remainder of the projects, an official statement by the ministry of housing and urban affairs said. This is the third extension to the mission.

The Centre earmarked 48,000 crore for projects in 100 cities over the mission period of five years starting 2015 and required state government and urban local bodies to make a matching contribution. An exception was made for 13 Himalayan and northeastern states where the Union government was to provide 90% of the funding and the remaining 10% was to be made by state and local bodies. About 21% of funds were to come from convergence.

This fresh round of extension was expected after Telangana chief minister Revanth Reddy earlier this week said that he had received positive feedback from the Centre on his request to extend the mission.

In January, HT reported how around 400 projects under the Smart Cities Mission were unlikely to meet the June deadline.

The government’s statement on Wednesday said 830 projects amounting to 19,926 crore, accounting for 10% of the total projects under the mission, were in advanced stages of completion while 7,188 projects (90% of total projects) amounting to 1,44,237 crore had been completed.

The statement said the union government has already released 46,585 crore (97% of the allocation) to 100 cities and 93% of the central funding has been utilised.

To be sure, a parliamentary standing committee report in February also suggested that the government extend the smart cities mission to ensure that the Centre helps cities that are falling behind.

The committee also flagged several shortcomings and lacunas in the implementation of the scheme including the failure of most participating cities to raise funds through innovative measures such as green financing and municipal bonds. The committee also emphasised that the command-and-control centre infrastructure and the digital assets created under SCM should be maintained and privacy safeguards be put in place.

The committee said a second instalment of the mission should be launched only for Tier-II cities and the government should focus on assisting cities in formulating masterplans for greenfield development and engage elected representatives in planning and decision-making processes.

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