Smart City Mission, which was launched in June 2015, involves developing 100 smart and sustainable cities. This involves a 50:50 financing model with the Centre contributing Rs 500 crore and the state giving an equal share for five years.
While the Centre has been releasing its share to the states, which is then given to the smart cities, the state governments have not been releasing their matching contribution. According to the statistics of ministry of housing and urban affairs, the Centre has released Rs 27,282 crore to 100 smart cities till date but the state matching share is Rs 21,024 crore.
Topping the list is Telangana which has not released a single penny since the selection of its two cities – Warangal and Karimnagar – in 2016 and 2017 respectively. ‘Telangana is followed by Lakshadweep (which has not released 97% of its share), Sikkim (95% of its share not released), Manipur (90%), Nagaland (89%), Jammu and Kashmir (87%), Tripura (80%), Arunachal Pradesh (79%), Andaman and Nicobar (77%), Himachal Pradesh (62%), Goa and Puducherry (42%). These states account for 40% of the shortfall in state funds release.