Post-2025 Vision for Smart Cities: SPVs and ICCCs to Drive Urban Transformation

The Smart Cities Mission (SCM), launched in 2015 by the Government of India, stands as a landmark urban transformation initiative that reshaped the trajectory of urban governance across 100 selected Indian cities. As the Mission approaches its formal completion date of March 31, 2025, the Ministry of Housing and Urban Affairs (MoHUA) has laid out a comprehensive roadmap for sustaining the institutional gains achieved under the Mission. The focus is on repurposing Special Purpose Vehicles (SPVs) and Integrated Command and Control Centres (ICCCs) for long-term governance, innovation, and urban service delivery.

A Decade of Smart Urban Innovation

At the heart of the Smart Cities Mission’s implementation was the creation of city-level SPVs under the Companies Act, 2013, with equal equity participation from State/UT governments and Urban Local Bodies (ULBs). These SPVs have served as high-performing project management entities, executing over 8,000 projects, of which more than 93% have been completed by March 2025. The central government has already disbursed 99.44% of the ₹48,000 crore earmarked for the Mission, reinforcing the scale and efficiency of implementation.

Beyond infrastructure creation, the Mission has cultivated a new cadre of skilled urban professionals within public institutions, built local technical capacity, and demonstrated innovative models for inter-sectoral project planning and rapid execution.

ICCCs: Building Smart Governance Ecosystems

A flagship innovation of the Mission, Integrated Command and Control Centres (ICCCs) have become the digital nerve centres of real-time urban management. Now operational in all 100 smart cities, ICCCs have enabled a paradigm shift in governance across domains such as:

• Traffic and transport regulation

• Crowd and event management

• Disaster response and emergency communication

• Solid waste monitoring and sanitation

• Citizen safety and surveillance

With IoT-based data collection, AI-powered dashboards, and cross-agency coordination, these centres are now indispensable for responsive city management. MoHUA has encouraged States to integrate more municipal services into ICCCs and upgrade them periodically to sustain their relevance.

MoHUA’s Vision Post-March 2025

Recognising the robust institutional architecture developed under SCM, the Ministry has issued Advisory No. 27 to all States and UTs, outlining a two-pronged strategy:

1. Completion of Residual SCM Projects: SPVs must ensure that any unfinished projects under the Mission are completed in a timely and high-quality manner. Detailed Operation & Maintenance (O&M) plans must be prepared to safeguard the utility of assets created.

2. Repurposing SPVs and ICCCs: The Government envisions SPVs as permanent, agile institutions capable of advancing next-generation urban reforms, technology adoption, and public service delivery.

Five Key Roles for SPVs Beyond the Mission

The Advisory outlines five critical functional domains where SPVs are expected to contribute meaningfully in the post-Mission phase:

1. Technology Support

   • Assist ULBs in managing cybersecurity, data governance, and analytics.

   • Operate ICCCs as “city operating systems” or state-level analytical platforms.

   • States are advised to allow SPVs to earn service-linked revenues for ICCC operations.

2. Project Implementation

   • Act as implementing agencies for various State and Central Government schemes.

   • Develop a pipeline of bankable, investor-ready projects.

   • States may authorize SPVs to levy a project implementation charge (1.5%–3%) in line with procurement guidelines.

3. Consulting Support

   • Provide strategic advisory services to ULBs and departments in areas like mobility, water, sanitation, and green infrastructure.

   • Leverage institutional knowledge for evidence-based policy formulation.

4. Research and Assessment

   • Conduct urban diagnostics, manpower and logistics assessments.

   • Serve as incubation hubs for start-ups in the smart city, sustainability, and civic-tech domains.

5. Investment Facilitation

   • Play a catalytic role in structuring PPPs, engaging multilateral agencies, and driving city-level economic development.

   • Coordinate procurement and project execution across departments and tiers of government.

Financial Sustainability and Autonomy

MoHUA has emphasized the need for financial sustainability of SPVs, urging States to develop enabling policies that permit SPVs to charge a ‘Centage’ or professional fee for delivering project management and consulting services. This will grant SPVs operational independence and empower them to function akin to urban infrastructure development corporations.

Institutional Mainstreaming: SPVs in the Governance Fold

States and Union Territories have been called upon to formally integrate SPVs and ICCCs into their long-term urban governance structures. High-Powered Steering Committees (HPSCs) in each State are tasked with:

• Identifying urban sector priorities

• Mapping future roles for SPVs

• Enabling regulatory and administrative support for SPV operations

• Ensuring that ICCCs remain updated and relevant as multi-agency coordination platforms

Towards a Smarter Urban Future

The Smart Cities Mission, which began as a demonstration of innovation-driven urbanism, has now evolved into a blueprint for future-ready urban governance. With Advisory No. 27, the Government of India signals its intent to institutionalise the Smart City learnings through sustained support for SPVs and ICCCs, long after the Mission ends.

This visionary continuity plan aims to deepen the decentralisation of urban governance, accelerate technology adoption, and ensure that India’s urban centres emerge as globally competitive, citizen-friendly, and resilient engines of national growth.