PROJECT-Smart City Mission

Smart City Mission

Smart City Mission

The Sub-Missions are

In the 2nd Round of Smart Cities Mission competition, 4 cities from Karnataka viz., Hubballi-Dharwad, Mangalore, Shivamogga & Tumakuru are selected. These cities have issued RfP for appointment of PMC to implement smart city projects in thier cities.

Hubballi Dharward Tumakuru Shivaogga Mangaluru


HDMC Mangalore Shivamogga Tumkur

Project Objective

The Government of India has launched Smart City Mission on 25th June 2015 with an objective to improve quality of life of its citizens by providing core infrastructure, a clean and sustainable environment and application of ‘Smart Solutions’. The focus is on sustainable and inclusive development and the idea is to improve compact areas, create a replicable model which will act like a light house to other aspiring cities.

The mission will cover 100+ cities and its duration is five years(FY 2015-16 to FY 2019-2020). The Government of India has allocated 7 cities of Karnataka State

Project Scope

As per the mission guidelines, the cities have to prepare a Smart City Proposal (SCP) with an extensive citizen consultation, submit the same to GOI to get selected for the investment under the Mission.

From Karnataka 7 cities are selected for investment based on their SCP namely,

Project Towns:
  • Hubballi-Dharawad
  • Mangalore
  • Belagavi
  • Davanagere
  • Shivamogga
  • Tumakuru

Project Components

Projects proposed in SCM consist of 2 major components:

Area based development:

There are three strategies;

  • Retrofitting : Development of an existing built area greater than 500 acres so as to achieve the objective of smart cities mission to make it more efficient and livable.
  • Redevelopment : Replace existing built environment in an area of more than 50 acres and enable co-creation of a new layout, especially enhanced infrastructure, mixed land use and increased density.
  • Greenfield: Develop a previously vacant area of more than 250 acres using innovative planning, plan financing and plan implementation tools with provision for affordable housing, especially for the poor.
Pan City development:
  • Pan-city development envisages application of selected Smart Solutions to the existing city-wide infrastructure. Application of Smart Solutions will involve the use of technology, information and data to make infrastructure and services better.

Project Funding Arrangement

This Project will be implemented as a Centrally Sponsored Scheme (CSS) spread over 5 years with an annual allocation of Rs 100 Crore each from GoI and GoK for each city and thus each city will get Rs. 1000 Crore at the end of the 5 years period.

As per the Mission Guidelines, the cities are expected to plan with as much larger outlay as possible in addition to the funds being made available by State and Central Government. The cities can achieve the same by multiple options of financing like convergence of all schemes and initiatives of Central and state Governments, generate own resources, proposing PPP projects, market borrowings, loans and by even inviting equity partners for the projects. Hence, the grants from state and central govt will only be a seed capital for the SCP plan implementation.

Project Implementation

KUIDFC is nominated as the State Level Nodal Agency (SLNA) for the implementation of SCM in Karnataka.

Special Purpose Vehicle (SPV)

The SCM envisages the implementation of SCP through an innovative mechanism “Special Purpose Vehicle (SPV)” which is efficient and completely ring-fenced from the ULB. SPVs are established in all the cities and the same is in process for Bengaluru.

State High Powered Steering Committee (SHPSC)

To monitor and steer the implementation of SCM in the state, SHPSC is formed under the Chairmanship of honourable Chief Secretary, GoK, with representatives of various State Government departments.

City Advisory Form (CAF)

A ‘City Advisory Forum’ in all the cities selected under Smart City Mission is to be established to advise and enable collaboration among various stakeholders including the District Collector, MP, MLA, Mayor, CEO of SPV, local youths, technical experts, and at least one member from residential welfare association, registered tax payers associations, slum level federation, member from NGO, Chamber of Commerce.


SPV as public limited company registered under Companies Act 2013, are incorporated in all the 6 cities and the same is in progress for Bengaluru.

Smart City Proposals are concepts to assist the SPVs in projectivisation of the SCPs, Project Management Consultants (PMC) are appointed to all the 6 cities.

Smart City Proposals are concepts and PMCs are preparing the DPRs.

As SLNA, KUIDFC is developing a GIS based citizen portal for the six cities selected under Round 1 & 2 competition.

Physical progress
  • Tender issued to appoint System Integrator for establishment of Common Command & Control Centre at Belagavi.
  • Construction of 2 smart roads at KPTCL road and Mandoli road for Belagavi City.
  • Construction of two Check Weirs in Heritage Park for Belagavi City.
  • Improvement of MG Road, Mandipet Road And Chamaraj pet Road in Davanagere City.
Financial Releases
Sl.No City GoI Gok Total
1 Bangaluru - - -
2 Belagavi 196 200 396
3 Davanagere 196 200 396
4 Hubballi-Dharwad 25 25 50
5 Mangaluru 25 25 50
6 Shivamogga 25 25 50
7 Tumakuru25 25 50


s part of the Mission Guidelines, cities selected in the SCM have to carry out various studies as part of the reforms. Details of these studies are as below.

Sl.No Name of the Study Status
1 Credit Rating of Urban Local Bodies Credit rating obtained for all the ULBs.
2 Enhancement of Advertisement Tax Tender issued by the cities for selection of consultancy firm to carry out the study.
3 Improvement to Property Tax RfP being customised
4 Value Capture Financing tools Tender issued by KUIDFC. As the rate quoted by consultancy firms are too high, decision taken to retender
5 Transaction Advisory for issuance of Municipal Bonds Decision to be taken after finalisation of the projects by cities.