In a major administrative overhaul signalling the end of the Centre-backed Smart City Mission, the Maharashtra government has ordered the dismantling of Special Purpose Vehicles (SPVs) across eight cities, including Nagpur. All powers have been transferred to municipal commissioners, effectively bringing the decade-long urban programme to a close.
In a government resolution issued on April 21, the Urban Development Department directed that chairpersons and board members of Smart City SPVs be relieved of their duties with immediate effect. Municipal commissioners will now also take charge as chief executive officers (CEOs) of the SPVs.
The decision affects key cities such as Nagpur, Pune, Nashik, Pimpri-Chinchwad, Thane, Kalyan-Dombivli, Solapur and Chhatrapati Sambhajinagar.
In Nagpur, the powers earlier held by SPV chairman Sanjay Mukherjee have been transferred to municipal commissioner Vipin Itankar.
The move follows the conclusion of the Smart City Mission’s official timeline, with no further financial assistance expected from the Centre. Although the deadline for completing projects had been extended to December 2025, the state has acknowledged that the mission period has effectively ended, necessitating a transition in governance, assets and personnel.
In a parallel directive, the government has ordered the immediate transfer of all Smart City assets to the respective municipal corporations. Civic bodies have been instructed to submit compliance reports by April 30.
All contractual staff working under the SPVs will be relieved, with their responsibilities reassigned to existing municipal employees. This step is likely to raise concerns over job losses as well as increased administrative burden on civic bodies.
The resolution further states that, once asset transfers are completed, the SPV entities—set up under the Companies Act specifically for the mission—must be formally wound up by their CEOs.
The state government has also reiterated its overriding authority over SPVs, stating that all directives issued by the Centre and the state will remain binding, irrespective of provisions in the companies’ Articles of Association.
The decision marks a significant shift away from the SPV-led model, which was designed to fast-track urban development projects. With the dissolution of SPVs, the responsibility for maintaining and operating Smart City infrastructure will now rest entirely with municipal corporations, raising questions about capacity, continuity and long-term urban governance.
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