GoI advisory to State Government: Smart City SPVs to be Re-purposed
Nagpur: Nagpur Smart and Sustainable City Development Corporation Limited (NSSCDCL) a special purpose vehicle (SPV) along with other 100 smart cities will continue to operate beyond the financial closure of the Smart City Mission (SCM) on 31 March 2025. Keeping in view various factors, including resources invested in establishing and strengthening SPVs, expected and anticipated growing relevance of these SPVs in attending to the ever-increasing roles of ULBs in addressing diverse urban challenges, the GoI holds the firm view that SPVs should continue to operate beyond completion of the SCM period on 31 March 2025, This was informed by the Smart City Mission Directorate, Government of India in an advisory issued to all the Principal Secretaries of all the states and Chief Executive Officers of 100 smart cities on Tuesday.
It may be noted that a consultative meeting with the State Principal Secretaries (Urban Development) and CEO of all the smart cities was held under the Chairmanship of Hon’ble Minister, MoHUA on April 7, 2025. On the basis of the discussions, the government has decided the re-purposing the SPVs created under the Smart City Mission. The advisory to all the States stated that the SCM has developed 8000 + multi sectoral projects across the country under the mission. These SPVs have implement the complex, multi sectoral and innovative projects as per the city’s local needs and aspirations. The manpower engaged in SPVs have also acquired valuable experience in implement these projects. The mission released 99.44 % of the total budget outlay of the mission i.e. Rs 48000 crores. The GoI also directed to ensure completion of all projects undertaken in the mission, handing over and operation and maintenance of all the assets developed under the mission. All the on-going projects under SCM are to be completed till December 2025. The completed projects can be either handed over to respective departments or O&M can be continued by the SPV with levy of service charges from the respective departments.
The GoI stated that a high power steering committee (HPSC) chaired by Chief Secretary of respective state should decide the role of respective SPVs as per their priorities. These SPVs can deliver future roles in Technology Support required in urban management, cyber-hygiene/safety to the ULBs. It can also help in project implementation services under various schemes, focusing on creating a pipeline of the bankable projects, also in consulting support to other state departments for better urban management, in research and assessment support for evidence based planning and decision making at city level. The SPVs also work as investment facilitation assistance to drive city level investments and economic development. The government also recommended for the up gradation of ICCC in its Advisory.
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