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  • 29 July, 2021

  • 12 Min Read

Smart Cities Mission (SCM)

Smart Cities Mission (SCM)

  1. For economic growth, improve Quality of life, local development, harness technology to create smart outcomes. It will cover 100 cities and it will be from 2015 to 2020. It is a mission mode project.
  2. Mission is under MoHUA. SCM will be operated as a Centrally Sponsored Scheme
    1. Center will give Rs. 48000 crore over 5 years with Rs. 100 crore per city per year.
    2. An equal amount (on a matching basis) will be given by State/ ULB.
  3. Smart Cities Mission Strategy: Pan city initiative; Develop areas step by step; AMRUT follows a project-based approach, the Smart Cities Mission follows an area-based strategy; Retrofitting; Redevelopment and Greenfield.
  4. Core Infastructure components: Water, electricity, sanitation (SWM), public transport, affordable housing, IT connectivity, sustainable environment, safety of citizens, Good governance, health and education.
  5. Convergence with AMRUT, SBM, HRIDAY, Digital India, Skill development, HfA etc.
  6. For the 1st time, MoUD programme uses Challenge or Competition method to select cities for funding. Hence Competitive and Cooperative federalism.
  7. Participation will be enabled by Special Purpose Vehicle (SPV) and by using ICT.
  8. Selection of 100 Smart Cities: Smart City aspirants are selected through a ‘City Challenge Competition’.

Finance Commission has recommended a performance-based challenge fund of ? 8,000 crore to States for incubation of new cities

  • The XV Finance Commission, in its report submitted to the Government of India, has recommended a performance-based challenge fund of ? 8,000 crore to States for incubation of new cities.
  • The amount available for each proposed new city is ? 1,000 crore and a State can have only one new city under the proposed scheme.
  • Thus, a maximum of eight States can avail this grant for eight new cities over the award period of the Commission.
  • Moreover, Area Based development is a key strategic component of the Smart Cities Mission, launched on June 25, 2015.
  • Area Based development models include city improvement (retrofitting), city renewal (redevelopment) and/or city extension (Greenfield development).
  • 100 cities have been selected for development as Smart Cities over 4 rounds of competition conducted between January 2016 to June 2018.

Source: PIB

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