Smart Cities Mission (SCM)

1. The Smart Cities Mission (SCM) is a flagship urban renewal and retrofitting program launched by the Government of India on June 25, 2015, under the Ministry of Housing and Urban Affairs (MoHUA).

2. It aims to develop 100 selected cities into "smart cities" by leveraging technology, data, and citizen-centric governance to enhance quality of life, promote sustainable development, and drive economic growth.

3. The mission focuses on creating efficient urban ecosystems with core infrastructure, clean environments, and inclusive services, addressing challenges like rapid urbanization, pollution, and inefficient resource use.

4. Cities were selected through a competitive "Smart Cities Challenge" process, emphasizing innovative proposals for area-based development (e.g., retrofitting, redevelopment, greenfield projects) and pan-city solutions (e.g., smart mobility, e-governance).

Key Objectives

• Promote cities with core infrastructure (e.g., water supply, sanitation, energy) and a decent quality of life for citizens.
• Ensure a clean and sustainable environment through 'smart' solutions like IoT-based traffic management, intelligent lighting, and waste management.
• Foster inclusive and sustainable development, focusing on economic growth, social equity, and institutional strengthening.
• Improve urban services such as affordable housing, education (e.g., smart classrooms), health, and disaster resilience.

Key Components

• Area-Based Development: Retrofitting existing areas, redeveloping slums, and creating greenfield smartfield developments in compact areas to serve as replicable models.
• Pan-City Solutions: Technology-driven initiatives like integrated command centers, smart grids, e-governance platforms, and citizen engagement apps.
• Institutional Framework: Special Purpose Vehicles (SPVs) in each city for project implementation, an Apex Committee for national oversight, and convergence with other schemes like AMRUT and Swachh Bharat.
• Sustainability Focus: Emphasis on green buildings, renewable energy, and public-private partnerships (PPP) for funding and innovation.
• Research and Academia Linkage: Initiatives like SAAR (Smart Cities & Academia towards Action & Research) for impact studies and knowledge sharing.

Funding

The mission has a total outlay of over ₹1,70,000 crore, with central assistance of ₹48,000 crore over five years (₹100 crore per city annually), matched equally by states/Urban Local Bodies (ULBs). Additional funds come from:

• Convergence with other programs (21%).
• PPP (21%, though actual realization has been only ~5%).
• ULB resources, municipal bonds, and borrowings. Budget allocations were extended, including ₹14,100 crore in 2023 and ₹16,000 crore further. Special Purpose Vehicles (SPVs) in each city oversee fund utilization and project execution, often through PPP models.

AMRUT Mission (Atal Mission for Rejuvenation and Urban Transformation)

1. The AMRUT Mission, launched on June 25, 2015, alongside SCM, is a centrally sponsored scheme by MoHUA to improve basic urban infrastructure and service delivery in cities. It focuses on making cities water-secure, sanitation-efficient, and liveable, particularly for the urban poor.
2. AMRUT 1.0 covered 500 cities, while AMRUT 2.0 (launched October 1, 2021) expanded to all ~4,900 statutory towns for the period 2021-22 to 2025-26, subsuming the original and emphasizing universal access to water and sewerage.

Key Objectives

• Ensure 100% household access to functional tap water connections and assured supply.
• Achieve full coverage of sewerage/septage management to reduce pollution and promote a circular water economy.
• Enhance urban amenities like parks, green spaces, and non-motorized transport to improve quality of life.
• Promote sustainable urban transformation, including water body rejuvenation, stormwater drainage, and climate-resilient infrastructure.

Key Components

• Water Supply and Sewerage: Providing tap connections, treatment plants, and septage management; targets 2.68 crore tap connections and 2.64 crore sewer/septage connections.
• Urban Infrastructure: Development of parks, water bodies, and mobility enhancements (e.g., walking/cycling tracks).
• Institutional Mechanisms: State-level monitoring, ULB involvement, and convergence with schemes like Swachh Bharat and Jal Jeevan Mission. Includes Pey Jal Survekshan for benchmarking water services.
• Innovation and PPP: Mandates 10% of projects in large cities (>10 lakh population) via PPP; focuses on technology sub-missions for water and circular economy principles.
• Expansion in 2.0: Universal coverage in all ULBs, special tranches for water body rejuvenation, and integration with National Water Policy.

Funding

AMRUT 2.0 has a total indicative outlay of ₹2,77,000 crore, with central share of ₹76,760 crore over five years. Funding is shared between:

• Central Government (up to ₹76,760 crore total allocation for 2.0).
• States and ULBs (matching contributions).
• Additional resources from PPP, municipal bonds, and other schemes. As of May 2024, ₹83,357 crore had been disbursed. In Budget 2025-26, the Urban Rejuvenation Mission (encompassing AMRUT) received ₹10,000 crore for 500 cities, up from ₹8,000 crore previously.
• SPVs or project implementation units in cities oversee execution, with an Urban Challenge Fund of ~₹1 lakh crore supporting AMRUT and SCM. What is Urban challenge fund? Click here to know

Comparison Between Smart Cities Mission and AMRUT Mission

Both missions complement each other under MoHUA, converging on urban rejuvenation. SCM emphasizes innovation, while AMRUT focuses on essentials. Post-2025, their frameworks support initiatives like the Urban Challenge Fund for sustained urban development.