On July 29, as the government proudly presented its Smart Cities initiative in the Lok Sabha, citing Pune as a flood monitoring and mitigation model, the reality on the ground was starkly different. Pune, one of the flagship cities in the Smart Cities Mission (SCM), was reeling from relentless rains, leaving thousands of citizens desperate for relief. The local municipal body, a pioneer in the SCM, struggled to manage the flood disaster.

Launched in 2015, the SCM aimed to develop 100 cities with cutting-edge technology and infrastructure, emphasizing sustainability and innovative urban planning. According to government data, as of July 12, 2024, tenders worth ₹1,64,223 crore have been issued for 8,016 projects under the SCM, with 7,218 projects valued at ₹1,45,083 crore completed. Despite these impressive figures, citizens are questioning the quality and actual impact of these projects. The Standing Committee of Housing and Urban Affairs has recommended a third-party assessment of these projects before considering the next phase of the Mission.

The government has extended the Mission period to March 31, 2025, to complete the remaining projects.

PPP model falling short

The SCM envisioned ₹2,05,018 crore in investments across 100 Smart Cities, with ₹41,022 crore (21%) expected from Public-Private Partnerships (PPP). However, half of the Smart Cities have not undertaken any projects under the PPP model. Out of 7,970 projects worth ₹1,70,400 crore, only 207 projects valued at ₹10,794 crore (6% of the total) have been executed through PPP, according to the Standing Committee report submitted to the Lok Sabha in February this year. 

The Standing Committee has emphasized the need for private sector involvement, stating, “Public sector alone cannot drive infrastructural growth. Governments at all levels need to attract and involve private players, who bring both funds and state-of-the-art technology.” The Committee urged the government to analyze the reasons behind the limited success of the PPP model and implement necessary remedial measures.

Mission in slow mode

The SCM’s progress has been sluggish, particularly in smaller cities and North-Eastern States, where city administrations often lack the organizational and financial capacity to manage large-scale projects. The Ministry has acknowledged that many Smart Cities struggled to plan and execute projects worth thousands of crores.

In contrast, larger and more developed Smart Cities have performed better in attracting and utilising funds through various means, including convergence, PPP, and loans. However, smaller Smart Cities, especially in North-Eastern States and Union Territories, have found it challenging to secure and utilise funds beyond those provided by the Central and State governments.

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