• It aims to promote cities that provide core infrastructure and give a decent quality of life to its citizens, a clean and sustainable environment and application of 'Smart' Solutions
  • It aims to focus on sustainable and inclusive development and to set examples that can be replicated both within and outside the Smart City, catalysing the creation of similar Smart Cities in various regions and parts of the country. 
  • To improve the ease of living particularly for poor, women, elderly and differently abled.

Salient Features

  • The Mission will cover 100 cities and its duration will be five years (FY 2015-16 to FY 2019- 20). 
  • The strategic components of Area-based development in the Smart Cities Mission are city improvement (retrofitting), city renewal (redevelopment) and city extension (greenfield development) plus a Pan-city initiative in which Smart Solutions are applied covering larger parts of the city. 
  • Finance:
    • It will be operated as a Centrally Sponsored Scheme (CSS) and the Central Government proposes to give financial support to the Mission to the extent of Rs. 48,000 crores over five years i.e. on an average Rs. 100 crores per city per year. 
    • An equal amount, on a matching basis, will have to be contributed by the State/ULB.
    • States are asked to nominate names of cities for a ‘City Challenge Competition’ and the chosen ones will get Central fund.
  • Cities will prepare their Smart City Proposal (SCP) containing the vision, plan for mobilisation of resources and intended outcomes in terms of infrastructure upgradation and smart applications. 
  • Implementation by a Special Purpose Vehicle (SPV):
    • The implementation of the Mission at the City level will be done by a Special Purpose Vehicle (SPV) which will be headed by a CEO and have nominees of Central Government, State Government and ULB on its Board. 
    • The SPV will be a limited company incorporated under the Companies Act, 2013 at the city-level, in which State/UT and the ULB will be the promoters having 50:50 equity shareholding. 
    • The private sector or financial institutions could be considered for taking equity stake in the SPV, provided the shareholding pattern of 50:50 of the State/UT and the ULB is maintained and the State/UT and the ULB together have majority shareholding and control of the SPV. 
    • Funds provided by the Government of India in the Smart Cities Mission to the SPV will be in the form of tied grant and kept in a separate Grant Fund. 
    • Under the SCM, 100 Smart Cities have been selected in 4 Rounds based on All India Competition. All 100 cities have incorporated Special Purpose Vehicles (SPVs).
  • Other initiatives under the mission
    • An all-India Challenge named CITIIS (Cities Investments to Innovate Integrate and Sustain) was launched on July 9, 2018 in partnership with Agence Française de Développement (AFD) and European Union. Grant would be given to Smart cities for implementation of 15 innovative projects selected through the All-India Challenge. 

The “Ease of Living” Index is an initiative of the Ministry of Housing and Urban Affairs (MoHUA) to help cities assess their liveability vis-à-vis global and national benchmarks and encourage cities to move towards an ‘outcome-based’ approach to urban planning and management.