Chandigarh Smart City Ltd set to wind up operations by March 20

With no fresh budget allocations and no extension from the central government, the operations of Chandigarh Smart City Limited (CSCL)—the special purpose vehicle formed to implement projects under the Smart Cities Mission—are set to wind up by March 20.

In the board of directors’ meeting on Wednesday, it was decided that the responsibility for the operation and maintenance of all ongoing projects will be handed over to the relevant departments under the Chandigarh administration and the municipal corporation before the deadline. Subsequently, the CSCL office and its operations will cease to exist.

The Smart Cities Mission (SCM), a flagship initiative of the National Democratic Alliance (NDA) government, was launched in 2015 to introduce transformative urban governance reforms in 100 selected cities across India. Chandigarh was selected under the Fast-Track Round in May 2016, following which CSCL was established to execute various developmental projects, focusing on infrastructure improvements, urban mobility, sanitation and integrated digital solutions.

Success on paper, struggles on the ground

While CSCL claims to have worked on over 100 small and large-scale projects, its primary focus was on 36 projects planned with an initial funding of ₹1,000 crore from the central government. The projects helped the city make new strides in security arrangements, traffic management, and garbage and sewerage handling, among others.

But while CSCL claims to have completed 35 of these projects, most of them remain rife with challenges. For instance: the last phase of Public Bike Sharing never kicked off, while the 24x7 water project in Manimajra, though launched amid much fanfare by Union home minister Amit Shah in August 2024, is still in trial phase.

₹853 crore spent on 36 projects since 2016

According to officials, ₹853 crore have been spent across these 36 projects, with ₹53 crore still pending in operational expenditures.

A significant chunk of the funds— ₹304 crore—was utilised for setting up sewage treatment plants, while ₹334 crore were invested in constructing a state-of-the-art Integrated Command and Control Centre.

The remaining funds were directed toward various ancillary projects, including 24x7 water supply in Manimajra and bioremediation of legacy waste at Dadumajra (see box).

No fresh funds allocated in Union budget 2025

As per the latest directives from the Government of India, the centrally sponsored Smart Cities Mission has been extended until March 31, 2025. Originally scheduled to conclude by June 30, 2024, the scheme has received a brief extension.

However, the central government made no budget allocation for the mission in the 2025-26 Union budget, announced on February 1 this year.

Chandigarh municipal commissioner and CSCL CEO Amit Kumar stated, “The board has decided to wind up operations by March 20. Most projects have already been transferred to the Chandigarh municipal corporation, while the remaining will soon be handed over to the respective departments. However, if the central government issues any official directions regarding the future course of the mission or its extension, the board will reconvene to decide on further steps. Until then, the mission will be wrapped up as decided.”