With the Smart Cities Mission concluding after multiple extensions, state governments across India are now focused on repurposing the Special Purpose Vehicles (SPVs) that were instrumental in implementing the mission's projects. Launched in June 2015, the Smart Cities Mission aimed to transform 100 cities into citizen-friendly and sustainable urban centers through technology integration and infrastructure development. The mission relied heavily on SPVs, joint ventures between municipal corporations and state governments, registered as private companies. These SPVs were responsible for planning, implementing, and managing projects, receiving funding from both central and state governments.

As the mission's deadline of March 31, 2025, has passed, the relevance and future of these SPVs have come under scrutiny. While the mission has achieved significant milestones, including the completion of over 7,479 projects worth ₹1.5 lakh crore by January 2025, the ongoing operation and maintenance of the assets created remain a key concern. The central government allocated ₹48,000 crore over five years, with states and Urban Local Bodies (ULBs) expected to match the funding.

Several states are now transitioning these SPVs into consultancy platforms for municipal corporations. This repurposing aims to leverage the expertise and experience gained by the SPVs in urban development projects. By offering consultancy services, the SPVs can continue to contribute to urban development while also generating revenue to sustain their operations. To ensure long-term viability, states are emphasizing the importance of these SPVs becoming self-sufficient through consultancy fees and project implementation charges.

However, the transition is not without its challenges. In Uttar Pradesh, for instance, the state government is already downsizing the staff hired by SPVs. The plan is to retain only the minimum staff required under the Companies Act. Funding for the daily operations of the SPVs remains a concern, and the state government has requested the finance department to provide funds until a final decision on their future is made.

In other states like Karnataka and Maharashtra, SPVs are exploring alternative revenue streams. One such option is to share the revenue generated from traffic challans issued using the CCTV cameras and Integrated Command and Control Centers (ICCCs) installed under the Smart Cities Mission. These ICCCs, considered one of the mission's key achievements, enable cities to make real-time, data-driven decisions. Maintaining these ICCCs and regularly upgrading their technology requires domain experts, and securing funds for their salaries is crucial for their continued operation.

The Parliamentary Standing Committee on Housing and Urban Affairs has also recognized the importance of sustaining the SPVs. It has recommended that the Ministry of Housing and Urban Affairs (MoHUA) formulate guidelines for the SPVs to continue their operations even after the mission concludes. The committee emphasized that Smart Cities should serve as "lighthouses" for other cities and recommended that the ministry take charge of the guidelines to ensure the proper preservation and maintenance of the assets created.

Several challenges persist as states navigate the repurposing of SPVs. One major issue is ensuring the seamless transfer of assets and responsibilities to municipal corporations. In Nagpur, the state government has directed the Nagpur Smart and Sustainable City Development Corporation Limited (NSSCDCL) to transfer all its projects and assets to the Nagpur Municipal Corporation (NMC) by March 31, 2025. The NMC will now be responsible for the future operations, maintenance, and monetization of these assets. The state government has left it to the local administration to decide whether the SPV should be dissolved or repurposed for other missions.

Another challenge is the potential for governance issues, such as frequent transfers of SPV CEOs, which have disrupted project execution in the past. To address this, experts recommend appointing dedicated CEOs with fixed tenures for better accountability. They also suggest fostering transparency through regular advisory forum meetings and enhancing IT infrastructure and privacy safeguards to protect digital platforms from cyberattacks and ensure data privacy.

As states repurpose Smart City SPVs, the focus is shifting towards ensuring the sustainability and continued relevance of these entities. By transitioning into consultancy platforms, exploring alternative revenue streams, and addressing governance challenges, states aim to leverage the expertise and infrastructure developed under the Smart Cities Mission for future urban development initiatives. The success of this transition will determine the long-term impact of the mission and its contribution to India's urban landscape.