Repurposing Smart Cities' Special Purpose Vehicles to Drive Sustainable Urban Development

Strategic Insights -

The Union Housing and Urban Affairs Ministry has issued an advisory to states, outlining a roadmap for repurposing Smart Cities' Special Purpose Vehicles (SPVs) to drive sustainable urban development. Launched in 2015, the Smart Cities Mission marked a significant shift in urban development strategy by promoting city-level innovation and integrated infrastructure delivery. Under the Mission, SPVs were established in all 100 selected cities, and as of March 2025, over 93% of the 8,000 plus projects have been completed, with the Government of India having disbursed nearly 99.44% of the Mission's total budget outlay of Rs 48,000 crore.

Key Takeaways:

  • The advisory from the Union Housing and Urban Affairs Ministry aims to repurpose Smart Cities' Special Purpose Vehicles (SPVs) to drive sustainable urban development.
  • As of March 2025, over 93% of the 8,000 plus projects under the Smart Cities Mission have been completed, with the Government of India having disbursed nearly 99.44% of the Mission's total budget outlay of Rs 48,000 crore.
  • SPVs have demonstrated the ability to deliver complex, multi-sectoral projects with agility and innovation.
  • The advisory outlines five broad domains for future engagement: Technology Support, Project Implementation, Consulting Support, Research and Assessment, and Investment Facilitation.
  • SPVs can charge a 'Centage' (Fee) from the State/UT to plan, design, develop, and implement projects/Schemes of Center/State government in lieu of the functions and services delivered by them.
  • The Government of India is of the view that Special Purpose Vehicles (SPVs) and Integrated Command and Control Centres (ICCCs) should continue to operate beyond the completion of the Smart Cities Mission on 31.03.2025.

Statistics:

  • 93% completion rate of projects under the Smart Cities Mission as of March 2025.
  • 99.44% disbursement of the Mission's total budget outlay of Rs 48,000 crore by the Government of India.
  • 100 cities selected under the Smart Cities Mission.
  • 8,000 plus projects completed under the Mission.
  • 50:50 equity share holding between State/UT governments/administration and respective Urban Local Bodies (ULBs) as promoters under the Companies Act, 2013.
  • Rs 48,000 crore: the total budget outlay of the Smart Cities Mission.

Sources:

  • Orissa TV
  • Published by HT Digital Content Services with permission from Orissa TV.