SBI Term Loan: RLLR: 8.15 | 7.25% - 8.45%
Canara Bank: RLLR: 8 | 7.15% - 10%
ICICI Bank: RLLR: -- | 8.5% - 9.65%
Punjab & Sind Bank: RLLR: 7.3 | 7.3% - 10.7%
Bank of Baroda: RLLR: 7.9 | 7.2% - 8.95%
Federal Bank: RLLR: -- | 8.75% - 10%
IndusInd Bank: RLLR: -- | 7.5% - 9.75%
Bank of Maharashtra: RLLR: 8.05 | 7.1% - 9.15%
Yes Bank: RLLR: -- | 7.4% - 10.54%
Karur Vysya Bank: RLLR: 8.8 | 8.5% - 10.65%

Smart Cities Mission completes 90% of projects ahead of 10-year milestone

#Builders & Projects#India
Last Updated : 28th Apr, 2025
Synopsis

India launched the Smart Cities Mission in 2015 to modernize urban spaces through targeted infrastructure upgrades. Over the past decade, cities have completed more than 90% of the planned 8,000 projects, using INR 1.50 lakh crore of the INR 1.64 lakh crore allocated. States like Uttar Pradesh, Tamil Nadu, and Maharashtra directed the highest levels of investment. Cities focused on enhancing mobility, water systems, and sustainability through innovative, city-specific solutions. The mission combined central funding with municipal resources and financial tools. As it enters its tenth year, the mission continues to drive transformative, inclusive urban growth across India.

India's Smart Cities Mission marks a decade of progress, transforming urban life through focused development and modern infrastructure. Launched by Prime Minister Narendra Modi on June 25, 2015, the initiative has already delivered over 90% of its proposed projects, reshaping the future of 100 cities. Of the 8,000-plus multi-sector projects valued at INR 1.64 lakh crore, cities have completed 7,504, worth INR 1.50 lakh crore. This execution rate reflects a strategic leap in India's approach to sustainable and inclusive urban growth, according to a State Bank of India report.


Cities in 21 states accounted for 92% of the total disbursed funds, with Uttar Pradesh, Tamil Nadu, and Maharashtra registering the highest spending. Together, these three states accounted for nearly a third of the total expenditure, reinforcing their role in shaping India's urban evolution. Urban mobility and water and sanitation systems received top priority. Authorities directed nearly half the total investment toward these sectors, executing over 3,000 high-impact projects. On average, each project received INR 22 crore, indicating strong financial commitment to basic services.

Cities focused on smart infrastructure, aiming to improve public services, enhance quality of life, and promote cleaner, more efficient living environments. Local governments tailored their projects to suit unique city needs, many of which introduced solutions never before implemented in India. This bold experimentation has strengthened institutional capacity while encouraging cities to think beyond conventional models. The mission operates as a centrally sponsored scheme, with the central government providing INR 48,000 crore over five years.

Each city received INR 100 crore annually, matched by funding from state governments and urban local bodies. This shared investment approach ensured steady financial flow and joint accountability. In addition to core funding, cities raised capital through innovative methods. These included leveraging municipal bonds, tapping into internal revenues, aligning with other government schemes, and using finance commission grants. Such strategies created a resilient financing framework, enabling long-term project sustainability.

With its 10-year milestone on the horizon, the Smart Cities Mission stands as a powerful engine of India's urban renewal. It has narrowed infrastructure gaps, supported economic growth, and elevated everyday life. As cities continue to evolve through data-driven planning and citizen-first policies, this mission offers a replicable blueprint for building future-ready urban spaces across India.

Have something to say? Post your comment