Overview
CITIIS 2.0 (City Investments to Innovate, Integrate and Sustain 2.0) is a program conceived by the Ministry of Housing and Urban Affairs (MoHUA) in partnership with the French Development Agency (AFD), the German Development Bank (KfW), the European Union (EU), and the National Institute of Urban Affairs (NIUA). It was approved by the Union Cabinet in August 2023 for implementation over four years (2023-2027).
The program aims to drive investments into urban climate action with a focus on promoting circular economy, fostering data-driven planning, building institutional mechanisms, leveraging partnerships, and anchoring capacity building at city, state, and national levels. It is part of the broader Smart Cities Mission ecosystem.
| Parameter | Details |
|---|---|
| Implementation period | 2023-2027 (4 years) |
| Total external funding | ₹1,866 crore (EUR 212 million) |
| AFD loan | EUR 100 million (₹880 crore approx.) |
| KfW loan | EUR 100 million (₹880 crore approx.) |
| EU technical assistance grant | ₹106 crore (EUR 12 million) |
| FY 2025-26 budget allocation | ₹250 crore |
| Cities selected (Component 1) | 18 Smart Cities |
Three Components
Component 1: City-Level Climate-Resilient Projects
Financial and technical support to 18 competitively selected Smart Cities for projects promoting circular economy with a focus on integrated waste management. Each city develops a “Lighthouse Project” demonstrating scalable climate solutions.
Component 2: State-Level Climate Action Support
Support to all States and Union Territories for climate-oriented reform actions at the state level, including policy development, institutional strengthening, and capacity building for urban climate governance.
Component 3: National-Level Institutional Strengthening
Centre, State, and City-level interventions for climate governance, knowledge dissemination, and institutional strengthening. This component supports scale-up of successful models across all cities and towns.
18 Selected Cities (Lighthouse Projects)
The 18 cities were selected through a competitive challenge process (CITIIS 2.0 Challenge launched on 16 November 2023, applications closed 28 February 2024):
| S.No. | City | State |
|---|---|---|
| 1 | Srinagar | Jammu & Kashmir |
| 2 | Jaipur | Rajasthan |
| 3 | Udaipur | Rajasthan |
| 4 | Rajkot | Gujarat |
| 5 | Ujjain | Madhya Pradesh |
| 6 | Jabalpur | Madhya Pradesh |
| 7 | Panaji | Goa |
| 8 | Thiruvananthapuram | Kerala |
| 9 | Thanjavur | Tamil Nadu |
| 10 | Madurai | Tamil Nadu |
| 11 | Belagavi (Belgaum) | Karnataka |
| 12 | Bilaspur | Chhattisgarh |
| 13 | Kolkata | West Bengal |
| 14 | Agartala | Tripura |
| 15 | Guwahati | Assam |
| 16 | Muzaffarpur | Bihar |
| 17 | Agra | Uttar Pradesh |
| 18 | Bareilly | Uttar Pradesh |
Connection to Smart Cities Mission
CITIIS 2.0 operates within the Smart Cities Mission framework. The Smart Cities Mission is a Centrally Sponsored Scheme aimed at creating sustainable and inclusive cities with core infrastructure and smart solutions. Implementation is through a Special Purpose Vehicle (SPV) at the city level. Three core ideas: liveability, economic ability, and sustainability.
CITIIS 1.0 (the predecessor) supported 12 cities with projects covering sustainable mobility, public open spaces, urban e-governance, and social innovation for low-income settlements.
Focus Areas
- Circular Economy: Integrated solid waste management, resource recovery, reduce-reuse-recycle models
- Climate Resilience: Adaptation and mitigation strategies at city and state levels
- Data-Driven Planning: Use of technology and data for urban governance decisions
- Institutional Mechanisms: Building urban local body capacity for climate action
- Knowledge Dissemination: Scaling successful lighthouse models to other cities
Latest Developments
- March 2025: Agreements worth over ₹1,800 crore signed under CITIIS 2.0 for implementation in the 18 selected cities.
- FY 2025-26 Budget: ₹250 crore allocated for CITIIS in the Union Budget.
- November 2023: CITIIS 2.0 Challenge officially launched; Smart City SPVs invited to submit proposals.
- August 2023: Union Cabinet approved CITIIS 2.0 for 2023-2027 with total external funding of ₹1,866 crore.
Prelims Importance
- CITIIS 2.0 approved: August 2023; implementation period: 2023-2027
- Nodal Ministry: MoHUA
- Partners: AFD (France), KfW (Germany), EU, NIUA
- Total external funding: ₹1,866 crore (EUR 212 million)
- Loan component: EUR 100 million each from AFD and KfW
- EU grant: EUR 12 million (₹106 crore)
- 18 cities selected through competitive challenge for Component 1
- Three components: City-level (18 cities), State-level (all States/UTs), National-level
- Focus: Circular economy, integrated waste management, climate resilience
- CITIIS 1.0 covered 12 cities with different focus areas
Mains & Interview Importance
GS Paper 2 (Governance):
- Examine how international development partnerships (AFD, KfW, EU) shape urban governance priorities in India. Does external funding align with local needs?
- Evaluate the competitive challenge model used in Smart Cities Mission and CITIIS for project selection. Does it ensure equity across cities?
GS Paper 3 (Environment, Economy):
- Discuss the role of circular economy principles in urban waste management. How can CITIIS 2.0 lighthouse projects serve as scalable models?
- Analyse the linkages between climate-resilient urban infrastructure and economic productivity in Indian cities.
Interview Angle: “India’s cities generate 62 million tonnes of municipal solid waste annually but process only a fraction scientifically. Can 18 lighthouse cities under CITIIS 2.0 catalyse a nationwide shift toward circular economy in urban waste management?”
Sources: PIB, NIUA CITIIS Portal, PM India