States that used funds under Smart Cities Mission witnessed sharp drop in crime rates: SBI Report

The report revealed that states with a fund utilization rate above 80 per cent under the Smart Cities Mission recorded greater improvements in public safety compared to those with lower fund usage.

It said "States with greater utilization rate of SCM funds (>80 per cent) witnessed a larger reduction in crime rates compared to states with lower utilization, given the SCM utilization as of 2021".

The study aimed to measure the impact of high fund utilization on crime reduction using a Difference-in-Differences (DiD) framework.

This method helps isolate the effects of fund utilization from other factors that could influence crime rates over time or across different states.

The report highlighted that the DiD approach is effective in drawing causal conclusions, even when the treatment and control groups differ in size or composition. In this case, treatment intensity was measured by how much of the SCM funds a state utilized.

SBI noted that a significant number of projects under the Smart Cities Mission--especially those in the "Pan-city" and "Area-based Development" categories--focus on public safety.

These include the development of Integrated Command and Control Centres, intelligent traffic and surveillance systems, and real-time crime monitoring platforms. Such infrastructure is believed to help deter crime, improve emergency responses, and enhance overall urban security.

Apart from crime reduction, the report also examined the gains in air quality under the Smart Cities Mission.

Investments made in green cover, clean energy, and air quality monitoring are showing promising results.

A comparison of pollution levels in selected smart and non-smart cities between 2018 and 2024 found that smart cities experienced a more significant drop in particulate matter (PM) levels.

The report said, "Give the sample is a subset of total smart cities, the statistically significant results of the test is indicative of the evidence that smart cities have witnessed greater reduction in PM levels over non-smart cities".

Although the findings are based on a subset of cities, the results of the statistical tests indicate that Smart Cities, through coordinated efforts alongside the National Clean Air Programme, have made more progress in improving ambient air quality.

In summary, the report highlighted that how effective spending under the Smart Cities Mission can lead to safer, cleaner, and better-managed urban areas.