Why is it in the News?

Recently, the Union Housing and Urban Affairs Secretary Manoj Joshi told the Parliamentary Standing Committee on Housing and Urban Affairs that Some projects under the Smart Cities Mission would not be able to meet the June 30 deadline and the respective state governments would be responsible for completing them thereafter.

Key Highlights of the Report:

• Approximately 400 Smart City Mission (SCM) projects are facing challenges in meeting the extended deadline of June 2024, according to a recent report by the Parliamentary committee.
• These projects, being implemented by around ten cities under the Center's flagship SCM, are at risk of not being completed within the timeframe.
• The Ministry of Housing and Urban Affairs (MoHUA) has granted a second extension to the Smart Cities Mission, giving it until June 2024 to finalize pending work.
  • However, if these projects are not completed by then, the respective state governments will be responsible for completing them at their own expense.
• The role of the ministry extends beyond merely transferring funds; it also involves overseeing project execution and ensuring successful completion.
  • Despite the challenges, the ministry has emphasized that there will be no further extensions to the mission.
• Delays have been attributed to various factors, including difficulties in relocating local populations, legal hurdles such as land procurement issues, frequent turnover of smart cities' CEOs, and delays in projects requiring coordination with other government entities.
• In light of these challenges, the committee has proposed extending the Smart Cities Mission to Tier-2 cities located within 50-100 km of capital cities and tourist destinations.
  • Additionally, the committee has highlighted the importance of protecting privacy rights, especially given the extensive deployment of surveillance technology like CCTV cameras and Integrated Command and Control Centers across all 100 cities involved in the mission.

What is the Smart Cities Mission (SCM)?

• The Smart Cities Mission (SCM) was initiated on 25th June 2015, to foster urban centers that offer essential infrastructure and a sustainable, clean environment.
• Through a competitive process spanning from 2016 to 2018, 100 cities were selected for development as Smart Cities, each receiving five years from their selection to complete designated projects.
• Administered as a Centrally Sponsored Scheme under the Union Ministry of Housing and Urban Affairs (MoHUA), the program entails financial support from the Central Government amounting to Rs. 48,000 crores over five years, equating to an average of Rs. 100 crore per city per year, matched by an equivalent contribution from the State or Urban Local Body (ULB).
• Guided by six core principles, the Smart Cities initiative aims to enhance the quality of life for residents through the implementation of innovative solutions, fostering economic growth, and addressing social, economic, physical, and institutional aspects of urban development. It prioritizes sustainable and inclusive progress, endeavouring to establish scalable models that can serve as beacons for other cities aspiring for advancement.

• Financing for the Smart Cities Mission entails shared responsibilities between the Central Government, state governments, and ULBs, requiring equal contributions for project implementation.
  • As of December 1, 2023, significant progress has been made, with 6,419 projects worth Rs. 1,25,105 crore completed out of a total of 7,970 projects valued at Rs. 1,70,400 crore.
  • An additional 1,551 projects worth Rs. 45,295 crore are currently in progress, though certain cities, particularly those in the North-Eastern and Himalayan regions, as well as small Union Territories, face challenges in keeping pace.
• Budget allocations for the Smart Cities proposal have seen adjustments, with a reduction in the outlay from Rs. 7,634 crores to Rs. 7,535 crores in the revised budget for 2023-24, and a further decrease to Rs. 2,236 crores for the 2024-25 fiscal year.