New Delhi: With the Smart Cities Mission (SCM) ending on 31 March, special objective vehicles (SPVs) or private companies have been established in 100 cities to implement a large number of projects and manage the infrastructure created under the mission, ThePrint has learned to implement a large number of projects and manage the infrastructure built under the mission.
Launched in June 2015, 100 cities started the mission through SPVS -joint enterprises between municipal corporations and state governments. Under the 2013 Companies Act, registered as private companies, SPVS received mission funding for operations, salaries of employees and project implementation from the Central and State Governments.
With its dedicated team of SPVS, data, technology and engineering experts, has played an important role in successfully implementing projects under the Smart Cities Mission. As the mission is near its end, the city is searching for options such as reducing employees to maintain SPV.
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In Uttar Pradesh, including 10 smart cities – Lucknow, Agra, and Kanpur, other – State Government is already reducing employees hired by SPVS.
A senior official of the UP Government Urban Development Department told Thrint, “Under the Companies Act, there is a plan to keep minimum employees in SPV. We have asked cities to reduce the strength of employees. To provide funds for daily operation of SPVS, we have requested the Finance Department to provide funds on the fact that they are continued. ,
While some state governments are taking measures to ensure minimum employees in SPVs, others are waiting for the Ministry of Housing and Urban Affairs (MOHUA) to issue guidelines to continue the SPV from March 31.
In some cities, experts hired by SPVs to implement projects including Integrated Command and Control Center (ICCC) have started resigning due to uncertainty on the SPV future.
“We have hired many domain experts to implement important projects like ICCSS. A senior official of the Pune Smart Cities Development Corporation said that many people have started resigning due to lack of clarity about the future of the mission.
There are eight smart cities in Maharashtra- Poon, Solapur, Nagpur, Thane, Nashik, Aurangabad (now Chhatrapati Sambhajinagar), Pimpri Chinchwad and Kalyan-Domivali. Pune Smart Cities Development Corporation and others have written to the state government, demanding clarity on what will happen after 31 March.
A senior official of the Urban Development Department of the Government of Maharashtra told Theprint, “We are waiting for the advice of the Center on the continuity of SPVs beyond the mission period. A decision – if or not to shut down the spvs or not – will be based on that advisor. ,
Some officials from states like Karnataka and Maharashtra said that SPV has money to pay salary for a few months. After that, daily expenditure can be met with financial assistance.
To maintain property in smart cities, the Parliamentary Standing Committee on housing and urban affairs recommended that even after the mission is over, the Mohua frame guidelines for the SPVS to continue.
In its report on Mohua demand for grant for 2025-26, which was introduced in Parliament last week, the committee said, “The objective of smart cities is to act as ‘Lighthouse’ for other interested cities.” With this, it recommended the Ministry to take charge of guidelines to ensure proper conservation and maintenance of assets made under the mission.
Theprint has reached Mohua via WhatsApp and phone calls for its comments. This story will be updated as soon as Mohua responds.
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In the last decade, about 8,000 projects worth Rs 1.64 lakh crore have been approved under the mission of smart cities. Of this, 7,479 projects worth Rs 1.5 lakh crore were completed by January 2025.
State government officials say that efforts are being made to plan and maintain maintenance of assets made under the mission.
Most cities have handed over all drains, sewage treatment plants and municipal corporations and other state organizations for maintenance to all drains, sewage treatment plants and road infrastructure developed under the mission. ICCC operations continue in almost all cities under SPV.
One of the major achievements of the mission, ICCC is helping cities make real-time data-powered decisions. A team of domain experts operate ICCS. A senior SPV officer from Bhopal, Madhya Pradesh, said that domain experts need to run ICCC, which require regular technology upgradation.
A senior Madhya Pradesh government official said, “Domain experts will be required to run ICCC. Currently, SPV has funds to pay for the salary of experts hired for various projects. But for a few years additional funds will be required until the SPV becomes financially viable. ,
In some states like Karnataka, Uttar Pradesh, Madhya Pradesh, etc., SPVs are searching for the possibility of generating revenue from traffic invoice.
“CCTV installed under Mission and ICCCs is being used to release traffic challans. We are requesting our state government to share the revenue generated from the invoice with SPVS. We are also searching for other options to generate revenue to maintain the SPV created under the mission of smart cities, ”said Veerashkumar, Managing Director and Chief Executive Officer, Dawangere Smart City Limited.
(Edited by Madhurita Goswami)
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