Pune Smart City SPV To Continue Operations Despite End Of Central Funding
Pune, 8th April 2025: Despite the central government’s decision to officially wind down the Smart City Mission launched a decade ago, the Pune Smart City Development Corporation Limited (PSCDCL), a Special Purpose Vehicle (SPV) formed for the project’s implementation, will continue to function. Additional Municipal Commissioner Prithviraj BP informed that the employees currently working in the company will retain their positions, and the Pune Municipal Corporation (PMC) will take responsibility for their management.
As per the central government’s directive, financial support for Smart City projects will cease from 31st March 2025. Urban infrastructure and schemes developed under the initiative are being gradually transferred to respective municipal bodies. Pune has already begun this handover process over the past few months. However, the future of the SPV and its employees remained uncertain until recently.
A virtual meeting convened by the central government on Monday helped clarify the situation. Prithviraj BP stated that representatives from all states involved in the Smart City Mission participated in the meeting. During discussions, Maharashtra’s state government confirmed its decision to keep the Pune Smart City SPV operational.
“No state will dismantle the projects created under the Smart City scheme. Only the mode of management will change,” Prithviraj said while speaking to the media. “The Pune Smart City company will not be shut down.”
Originally, projects worth ₹1,000 crore were planned under the initiative in Pune. However, with additional funds sourced from PMC, PMPML, and other departments, the total expenditure reached ₹1,823 crore. A total of 52 projects were completed, with the central government contributing ₹490 crore and PMC and the state government each providing ₹245 crore.
Going forward, the responsibility for maintaining these completed projects will lie with the municipal corporation. The civic body will also handle the financial planning and execution required for their upkeep.
The continuation of the SPV is seen as strategic, as it could be instrumental in implementing upcoming initiatives like the Urban Digital Mission, which the central government is expected to launch in the coming months. During the meeting, it was also proposed that an ‘Urban Challenge Fund’ be established to support large-scale urban development projects. These would be financed through central grants and public-private partnerships, with implementation possibly overseen by SPVs.
Given these future possibilities, the state government has decided to retain the SPV and its staff for broader urban development use.
