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Economic development

Smart Cities Mission to Retain Special Purpose Vehicles and Integrated Command and Control Centres

Strategic Insights

— 1 min read

The Indian government has decided to retain Special Purpose Vehicles (SPVs) and Integrated Command and Control Centres (ICCCs) set up under the Smart Cities Mission (SCM), which concluded on March 31, 2025. The Ministry of Housing and Urban Affairs (MoHUA) has issued Advisory No. 27, outlining a two-fold strategy to utilize these entities for long-term urban support. SPVs will focus on preparing detailed operation and maintenance plans for existing assets, while exploring five new domains: technology support, project implementation, consulting support, research and assessment, and investment facilitation. The advisory encourages states to allow SPVs to charge a 'Centage' fee for financial sustainability and operational autonomy.

Key Takeaways:

  • The Smart Cities Mission has concluded on March 31, 2025, and the government has decided to retain Special Purpose Vehicles (SPVs) and Integrated Command and Control Centres (ICCCs) set up under the Mission.
  • The Ministry of Housing and Urban Affairs (MoHUA) has issued Advisory No. 27, which outlines a two-fold strategy for utilizing SPVs for long-term urban support.
  • SPVs will need to prepare detailed operation and maintenance plans for existing assets, and will explore five new domains: technology support, project implementation, consulting support, research and assessment, and investment facilitation.
  • States are encouraged to allow SPVs to charge a 'Centage' fee for planning and executing projects, ensuring financial sustainability and operational autonomy.
  • SPVs will maintain a 50:50 equity shareholding between State/UT governments and Urban Local Bodies (ULBs).
  • The formation of SPVs under the Companies Act, 2013, was a key component of the Smart Cities Mission, with 100 selected cities establishing these entities.

Statistics:

  • 150:50 equity shareholding between State/UT governments and Urban Local Bodies (ULBs) in Special Purpose Vehicles (SPVs).
  • 1.5-3 percent fee for project implementation by SPVs.
  • Five future domains for SPVs: technology support, project implementation, consulting support, research and assessment, and investment facilitation.
  • Centage fee for planning and executing projects by SPVs, aiming for financial sustainability and operational autonomy.

Sources:

  • Advisory No. 27, Ministry of Housing and Urban Affairs (MoHUA). Copyright 2025 Projects Today, distributed by Contify.com.

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