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The Maharashtra government has dismantled Special Purpose Vehicles (SPVs) set up under the Smart Cities Mission across eight cities, transferring control of projects, assets and governance to municipal corporations. The move follows the conclusion of the Centre-backed mission and the cessation of central funding support. Municipal commissioners will now assume the role of chief executives of the erstwhile SPVs, with all assets to be integrated into civic bodies. The transition raises concerns around administrative capacity, employee displacement and the completion of ongoing projects, while marking a structural shift from SPV-led execution to conventional urban governance frameworks.
The Maharashtra government has ordered the dismantling of Special Purpose Vehicles (SPVs) established under the Smart Cities Mission, transferring all powers, assets and responsibilities to respective municipal corporations across eight cities, as the centrally sponsored programme reaches its conclusion. Advertisement
The decision, formalised through a government resolution issued in the past week, applies to cities including Nagpur, Pune, Nashik, Pimpri-Chinchwad, Thane, Kalyan-Dombivli, Solapur and Chhatrapati Sambhajinagar. Municipal commissioners in these cities will now assume dual roles as administrative heads and chief executive officers of the erstwhile SPVs, consolidating governance under local bodies.
The move follows the formal closure timeline of the Smart Cities Mission, which was launched in 2015 to promote technology-driven urban infrastructure and planned development. With central funding support no longer continuing, the state has initiated a transition framework to integrate project execution and asset management within municipal systems.
As part of the transition, all Smart City assets are to be transferred to the respective municipal corporations, and SPV entities—originally incorporated under the Companies Act to fast-track project implementation—are to be wound up following completion of procedural formalities. Civic bodies have been directed to submit compliance reports within specified timelines.
The restructuring also involves the discontinuation of contractual staff engaged under SPVs, with their responsibilities expected to be absorbed by existing municipal personnel. This has raised concerns regarding potential job losses as well as increased administrative burden on already stretched civic bodies.
The SPV model was originally introduced to bypass bureaucratic delays and enable faster execution of urban infrastructure projects, including roads, transport systems, housing, surveillance networks and public utilities. However, with the dissolution of these entities, the responsibility for maintaining and completing such infrastructure now rests with municipal corporations.
In several cities, the transition is expected to involve the handover of ongoing and incomplete projects, some of which remain at advanced stages of execution. In cases such as Nashik, municipal authorities have already been directed to complete pending works linked to urban infrastructure and event-related development.
The shift has also raised concerns regarding continuity and operational management of existing Smart City assets. In cities like Nagpur, certain infrastructure components, including surveillance systems and urban mobility solutions, are yet to be fully transferred, creating uncertainty around their long-term maintenance and functionality.
The dismantling of SPVs marks a significant change in the urban governance model, moving away from project-specific corporate structures towards traditional municipal administration. The transition is expected to test the capacity of local bodies to manage complex infrastructure assets while ensuring timely completion of pending projects.
The development reflects the end of a decade-long urban initiative and signals a shift towards integrating smart infrastructure within mainstream municipal governance frameworks, with greater reliance on existing administrative systems for execution and oversight.
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