Smart City Mission Scrapped in Maharashtra, Special Purpose Vehicles Dismantled

In a sweeping administrative overhaul marking the end of the Centre-backed Smart City Mission, the Maharashtra government has ordered dismantling of special purpose vehicles across eight cities, including Nagpur, transferring all powers to municipal commissioners.
Smart City Mission Scrapped in Maharashtra, Special Purpose Vehicles Dismantled

Nagpur, April 24: 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 immediately. Municipal commissioners will now assume the role of CEOs of the SPVs.

Cities Affected

  • Nagpur

  • Pune

  • Nashik

  • Pimpri-Chinchwad

  • Thane

  • Kalyan-Dombivli

  • Solapur

  • Chhatrapati Sambhajinagar

Key Changes

  • Powers held by MMRDA commissioner Sanjay Mukherjee (SPV chairman for Nagpur) handed over to municipal commissioner Vipin Itankar

  • All Smart City assets to be transferred to respective municipal corporations

  • Compliance report to be submitted by April 30

  • Contractual staff under Smart City SPVs to be relieved

  • SPV companies to be formally wound up by their CEOs

Background

The move comes as the Smart City Mission's official timeline ended, with no further financial support expected from the Centre. Despite an extended deadline to complete projects by December 2025, the state acknowledged that the mission period has lapsed.

Implications

The decision marks a definitive shift away from the SPV-led model designed to bypass bureaucratic delays. With their dissolution, the responsibility for sustaining and operating Smart City infrastructure now rests squarely with municipal corporations, raising questions about capacity, continuity, and long-term urban governance.