Punjab lags behind in smart city project execution: SBI report, ET RealEstate
With Smart Cities Mission approaching its 10-year milestone, Punjab is lagging behind in project execution. According to the latest Ecowrap report by the State Bank of India (SBI), the state completed 87 per cent of its smart city projects, notably below the national completion rate of 93 per cent.
Launched by Prime Minister Narendra Modi on June 25, 2015, the Smart Cities Mission was designed to transform 100 cities across India into citizen-centric, sustainable urban centres. The mission aims to provide core infrastructure, a clean and liveable environment, and enhanced quality of life through the integration of smart solutions.
In Punjab, three cities were selected under the initiative. Of the 205 projects sanctioned in the state, amounting to ₹4,450 crore, 179 projects worth ₹3,969 crore were completed. However, 26 projects, with a total value of ₹481 crore, are still pending.
By comparison, 7,504 out of 8,063 approved projects were completed nationwide as of March 4. Neighbouring Himachal Pradesh performed better, with a 91 per cent completion rate. In the hill state, 265 of 291 projects worth ₹1,552 crore across two smart cities were executed, amounting to ₹1,206 crore in completed works.
At the top of the performance chart is Jharkhand with 100 per cent project completion, followed by Tamil Nadu (98 per cent), and West Bengal, Uttarakhand, Uttar Pradesh, Karnataka, and Gujarat, each recording 97 per cent completion. On the lower end, Telangana ranks last with a 64 per cent completion rate, followed by Manipur (70 per cent), Mizoram (71 per cent), and Arunachal Pradesh (73 per cent).
At the national level, nearly 50 per cent of the total project cost under the Smart Cities Mission has been allocated to mobility and water/sanitation-related projects, covering over 3,000 initiatives. On average, ₹22 crore has been spent per project.
The Smart Cities Mission is a centrally sponsored scheme, requiring equal financial contributions from both state govt and urban local bodies (ULBs). States are encouraged to leverage multiple funding avenues, including state/ULB resources, transfers under the 14th Finance Commission, municipal bonds, pooled finance, and borrowing from financial institutions, to fund the projects outlined in their smart city proposals (SCPs).
Despite its slow progress, Punjab is expected to gain from a new Indo-Canadian partnership aimed at fast-tracking smart city development. Under this initiative, 20 cities across Punjab, Haryana, and Rajasthan are being prioritised for accelerated reforms in governance and infrastructure. The initiative will focus on training at least 150 urban planners and designers and developing localised platforms and tools to improve planning, implementation, and delivery of services, particularly in areas such as water supply and sewerage.
