The Ministry of Urban Development (MoUD) has launched 4 key Flagship Missions, under this smart city is one of them. The motive of this mission is to provide core infrastructure and give a decent quality of life to its citizens, a clean and sustainable environment through the application of ‘Smart’ Solutions.

Main aim under smart city project is: focus to drive economic growth and improve the quality of life of people by enabling local area development and harnessing technology, especially technology that leads to Smart outcomes. Area-based development will transform existing areas (retrofit and redevelop), including slums, into better-planned ones, thereby improving the liveability of the whole City.

Application of Smart Solutions will enable cities to use technology, information, and data to improve urban infrastructure and services. Comprehensive development in this way will improve quality of life, create employment and enhance incomes for all, especially the poor and the disadvantaged, leading to inclusive Cities. The government of India announced the 1st list of 20 Smart Cities, in which Chennai got 17th rank and was selected as one of the Smart City on 28th January 2016.

The main objective of Smart City is to plan, appraise, approve, release funds, implement, manage, operate, monitor and evaluate the Smart City development projects. The company is having 7 board of directors and headed by the chairman, who is the commissioner of GCC. The Company and other shareholders will voluntarily comply with the provision of the Companies Act with respect to induction of independent directors.

 Government contribution to Smart City is used only to create an infrastructure that has public benefit outcomes. The execution of projects may be done through joint ventures, subsidiaries, public-private partnership (PPP), turnkey contracts etc. suitably dovetailed with revenue streams. The key functions and responsibilities of the SPV are to:

1. Approve and sanction the projects including their technical appraisal.
2. Execute the Smart City Proposal with complete operational freedom.
3. Take measures to comply with the requirements of MoUD with respect to the implementation of the Smart Cities programme.
4. Mobilize resources within timelines and take measures necessary for the mobilization of resources.
5. Approve and act upon the reports of a third-party Review and Monitoring Agency.
6. Overview Capacity Building activities.
7. Develop and benefit from the inter-linkages of academic institutions and organizations.
8. Ensure timely completion of projects according to set timelines. Undertake a review of activities of the Mission including budget, implementation of projects, and preparation of SCP and coordination with other missions/schemes and activities of various ministries.
9. Monitor and review quality control related matters and act upon issues arising thereof.
10. Incorporate joint ventures and subsidiaries and enter into Public-Private Partnerships as may be required for the implementation of the smart cities programme.
11. Enter into contracts, partnerships and service delivery arrangements as may be required for the implementation of the Smart Cities Mission.
12. Determine and collect user charges as authorized by the ULB.
13. Collect taxes, surcharges etc. as authorized by the ULB. (15) Any other functions as delegated by the central government or state government/ ULB within the scope of smart city mission.