How Maharashtra Is Building a ₹79000 Cr Smart City Revolution

Hitesh Mahajan
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Night aerial view of Maharashtra with neon digital network lines connecting Mumbai, Pune, and Nagpur, with smart-city HUD panels and data overlays.

Introduction

Maharashtra is rolling out a massive tech-driven push in urban infrastructure. In late 2025, the state government approved a ~₹75,000–79,000 Cr infrastructure package to transform cities, from Mumbai’s congested roads to Nagpur’s junctions, with cutting-edge solutions including AI-enhanced transit, IoT sensing, 5G connectivity, smart traffic control, and open digital commerce. The goal is making cities smarter, safer, and more efficient for everyday commuters. According to the state’s announcement, this package will “enhance urban mobility, strengthen rural-urban connectivity, and uplift social welfare” as part of India’s PM Gati Shakti initiative. In short, tech is now at the heart of Maharashtra’s city-building plans.

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Mega Projects & Tech Integration

Key highlights of the ₹75,000 Cr plan (roughly ₹79K Cr when combined with other commitments) include big-ticket transit and welfare projects, but each is wrapped in tech innovation:

  • Metro & Rail Expansion: Mumbai Metro Line 11 (Anik Depot–Wadala to Gateway of India) alone is ~₹23,500 Cr, plus ~₹14,900 Cr for new suburban rail corridors (Panvel–Vasai, Kasara–Asangaon, etc.). Pune-Lonavala gets a ~₹5,100 Cr rail corridor upgrade, and 238 air conditioned local trains (₹4,826 Cr) are being added to ease commutes.
  • Smart Infrastructure: All projects are integrated via India’s PM Gati Shakti scheme for digital monitoring and green tech. The plan explicitly notes “Smart Infrastructure: Integration with PM Gati Shakti emphasizes digital monitoring and green technologies” (including IoT sensors). In practice, that means using IoT devices and AI across roads, rails and utilities to optimize performance.
  • Social Tech Focus: Even welfare schemes are being boosted: pensions were raised by ₹1,000/month (costing ~₹450 Cr annually) to help 4.5 lakh beneficiaries. But even this is tech-enabled, with better data systems to disburse funds.

By weaving digital tools into every big project, Maharashtra plans not just to build roads and rails, but to create a connected system. For example, Tamil Nadu tech firms are expected to supply IoT sensors and digital components for Maharashtra’s projects, signaling interstate collaboration on smart solutions. Overall, officials estimate the package could boost the state’s GDP by over ₹60,000–1,35,000 Cr by 2030, much of that from faster, more efficient transit.

AI-Driven Transit & Automation

One headline goal is automated metro trains. Pune Metro, for instance, is gearing up to run its trains in a driverless “auto mode”. The Pune Mirror reports the metro plans “a groundbreaking transition to autonomous operation, where trains will operate without a human driver”. Certain sections (Vanaz–Ramwadi, Pimpri–Chinchwad–Swargate) could be up and running under central AI control, with dozens of CCTV cameras feeding a command center. This means a future of safer, more reliable metros – central control can monitor everything from train spacing to passenger security without a driver in the cab. This kind of automation isn’t far-fetched: metros in other countries already use “Grade-of-Automation 2+” systems. In Maharashtra’s case, officials note that once approved, driverless tech “has the potential to transform the way the Pune Metro operates” and boost passenger convenience.

Similarly, Nagpur Metro is expanding with the latest tech. (Nagpur’s Kamptee Road double-decker metro viaduct even set a Guinness world record – a testimony to the city’s infrastructure ambitions.) All new metro lines and stations across the state will feature modern signaling (often using Communications-Based Train Control) and digital passenger information systems. Even Mumbai’s Metro extensions (like Line 4 and 11) are secured by high-tech surveillance and monitoring equipment, and metro carriages now come with real-time information displays and better energy efficiency.

Smart Buses & Safer Commutes

Mass transit isn’t just trains. Maharashtra State Road Transport Corporation (MSRTC) is rolling out 3,000 “smart buses” loaded with AI and IoT tech. These new buses (including the famous red Lal Pari fleet) will have:

  • AI cameras: Fixed inside at entrances, above seats and near drivers. They act as a “third eye” – monitoring for accidents, assaults or driver fatigue. If the camera detects risky driving (like sudden lane changes or phone use), it can trigger alerts to on-road supervisors.
  • Passenger-counting sensors: Cameras and counters at doors tally how many riders get on/off, giving real-time occupancy data to improve scheduling.
  • Connectivity & Infotainment: Each bus has GPS navigation, Wi-Fi hotspots, LED screens, and even cameras streaming into a central system. Passengers see journey updates or news on the displays, and operators can adjust routes on the fly based on rider demand.
  • Security features: Anti-theft door locks and breath-analyzer systems for drivers. If a bus is idling at a station, it locks itself. CCTV deter misconduct (a concern after a past incident on a Pune bus).

MSRTC’s chairman says these technologies “will make the buses safer and more comfortable for passengers”. For example, 24×7 CCTV with AI can catch red-flag behavior or a driver nodding off. Over time, the bus network will use data analytics to spot delays, optimize routes, and even offer digital ticketing via mobile apps. In short, riding the bus becomes smarter and safer.

AI Traffic Management

Road traffic itself is getting a tech makeover. In Nagpur, Maharashtra’s second Smart City, officials have launched a ₹197 Cr Intelligent Traffic Management System (IITMS). This project – a collaboration between the Nagpur Municipal Corporation and Kerala’s Keltron – replaces fixed timers at signals with AI-driven adaptive signals. In practice, cameras and sensors at 10 pilot intersections now feed vehicle flow data to an AI hub, which adjusts light timings in real time. Early results are striking: once fully live, the system is expected to cut travel times by nearly half and boost vehicle speeds by ~60%. (Estimates cite up to 48% reduction in travel delay!)

The system also integrates Automatic Number-Plate Recognition (ANPR) and e-challan generation. Speed radars and LED signboards warn drivers, while a central command center can issue tickets for violations (red-light jumping, wrong-way driving, etc.) automatically. Ultimately, all 171 of Nagpur’s signals will become “smart lights” under this plan, drastically cutting jams and emissions. A spokesperson notes this AI rollout is “making Nagpur a smarter, more efficient city” that eases congestion and improves safety.

5G, AI & Connectivity

Behind the scenes, 5G trials and AI in telecom are powering many of these innovations. Pune has been a testbed: in 2021 the DoT handed out 5G test licenses (Vodafone-Idea with Ericsson, Jio with Nokia) covering city and suburban zones. This ultra-low-latency network enabled early pilots like:

  • Telemedicine: Doctors in Pune could remotely conduct ultrasound scans for patients in distant villages via 5G networks (with haptic feedback), bridging healthcare gaps.
  • Smart Construction: 4K video feeds from Mumbai construction sites allowed real-time “digital twins” of projects for training and monitoring, slashing errors.
  • Connected Workers & Safety: Factories and workplaces used 5G-linked helmets and cameras, with AI checking for safety-gear compliance and sending alerts if someone wavered.
  • Public Safety & Emergencies: 5G-enabled ambulances let paramedics video-call city doctors and monitor vitals en route. Drones managed via 5G deliver meds or surveil crowds. Even cricket players’ performance was streamed in real-time over 5G for AI coaching! All these use cases prove rural and urban areas alike benefit from next-gen connectivity.

In Nagpur’s smart village projects (e.g. Bajargaon), 5G gear and common AI platforms are being deployed for tele-education, drone farming, smart healthcare kiosks, etc. Maharashtra’s telecom push – 5G towers in cities and villages plus AI analytics – is literally “bridging the digital gap” between urban and rural, with companies, startups and institutions invited to contribute to 5G-intelligent village prototypes (drones, IoT farming sensors, AR/VR classrooms).

Digital Commerce & ONDC

Smart infrastructure isn’t just physical – Maharashtra is also embracing digital commerce. The government is part of India’s Open Network for Digital Commerce (ONDC) initiative, which creates a public e-commerce network for small sellers. Through ONDC, local kirana stores and vendors in cities like Mumbai, Pune and Nagpur can list products on a common platform without relying on big online retailers. Maharashtra’s public sector banks and startups are plugging into ONDC to boost local business. In fact, ONDC is already live in major Maharashtra cities (Mumbai, Pune, Thane, Navi Mumbai, Nashik, etc.), so citizens can order from neighborhood shops via apps. The effect? A roadside grocer in Nagpur or a handicraft seller in Aurangabad can reach any buyer on the network, and shoppers get more choices and competitive prices. In essence, ONDC is building a digital infrastructure for commerce that complements all the bricks-and-mortar smart projects.

Outcome: A Tech-Driven Urban Future

Taken together, these moves make Maharashtra’s cities more efficient and people-friendly. Commuting will be faster (AI traffic cuts delays by up to ~48%), travel safer (AI monitors and smart cameras), and transit cleaner (electric, AC coaches and optimized routes). Data from IoT sensors will help Pune or Nagpur tweak energy use, water supply and pollution control in real time. Small businesses (even in villages) gain broader market access via ONDC and digital payments. And behind it all, a ₹79,000 Cr investment ensures the backbone of roads, rails and connectivity is stronger than ever.

Residents in Mumbai, Pune and Nagpur will increasingly interact with this tech – using apps to plan their commute, tapping tolls and fares digitally, or using chatbots for transit info. City administrations will have data dashboards to manage resources and crowd flows. In short, everyday city life is being streamlined by AI, IoT, and 5G. Maharashtra’s example shows how a state can leap into the future: by investing heavily in smart urban infrastructure, it is setting up a virtuous cycle of better mobility, safety, and economic growth.

FAQs

Q1: What is Maharashtra’s ₹79,000 Cr plan all about?

A1: It’s a massive infrastructure boost approved in 2025, including urban transit (metros, suburban rails), roads, and welfare. Crucially, everything in the plan uses technology: from AI-driven traffic signals and smart sensors to automated metros and digital payments. The aim is to unclog cities and spur growth by 2030.

Q2: How will AI and IoT improve daily commutes?

A2: AI and IoT make transportation adaptive. For instance, Nagpur’s AI traffic system adjusts signal lights on the fly to reduce jams, cutting travel time by ~28–48%. Pune’s upcoming driverless metro will have cameras and sensors feeding a control center, improving safety and punctuality. Buses will use AI cameras to monitor driver alertness and passenger safety. In short, smart tech predicts and responds to traffic conditions in real time, meaning less waiting and safer rides.

Q3: What are “smart buses” and how do they work?

A3: Smart buses (like MSRTC’s new fleet) are ordinary buses upgraded with technology. They have AI cameras monitoring the driver and passengers, GPS for tracking, Wi-Fi, and digital displays for information. If the AI detects risky driving (like fatigue or speeding), it alerts supervisors. Cameras also count passengers and deter crime. The result is a safer, more efficient bus system that adapts to real-world conditions.

Q4: How does 5G connectivity fit into this?

A4: 5G provides the fast, reliable network needed by all these smart systems. It enables things like remote healthcare (a Pune doctor guiding a village ultrasound in real time) and connected emergency services. Maharashtra ran 5G trials in Pune and Nagpur, using them for drone deliveries, high-definition public surveillance and more. Going forward, broad 5G coverage will let devices (traffic lights, sensors, even farmers’ equipment) share data instantaneously. This ensures the AI and IoT tools in cities and villages always have up-to-the-second information.

Q5: What is ONDC and why does it matter to everyday people?

A5: ONDC (Open Network for Digital Commerce) is a government-backed system that connects local buyers and sellers on one network. In practice, Maharashtra shops and small businesses in Mumbai, Pune, Nagpur, etc. are joining ONDC. For people, it means you could order from your neighborhood store through any participating app, often at better prices. For sellers, it’s like being on a huge online marketplace without paying big commissions. ONDC isn’t physical infrastructure like roads or wires, but it digitally links communities, making commerce more inclusive and tech-enabled.

Maharashtra Government’s bold move of blending ₹79K Cr of funding with AI, IoT, 5G and digital platforms, is rapidly transforming its urban landscape. The days of gridlock, opaque systems and manual workarounds are yielding to a connected, data-driven city life.

Sources

  1. CEO Reporter
  2. Elets Technomedia
  3. Pune Mirror
  4. The Times of India
  5. Paytm Blog
  6. ONDC

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