New Delhi, December 8, 2025: With less than a year remaining in the Swachh Bharat Mission – Urban (SBM-U) 2.0, the majority of central government funds allocated to states and Union Territories (UTs) for urban sanitation remain unspent, according to information presented in the Rajya Sabha on Monday. Union Minister of State (MoS) for Housing and Urban Affairs Tokhan Sahu revealed that only ₹6,639.80 crore of the total ₹32,609.99 crore sanctioned for the mission has been utilised so far. This means that nearly 80% of the funds remain untapped as of now.

The underutilisation of funds has been largely attributed to delays in planning at the state level, frequent revisions of action plans, and a lack of adequate technical expertise at city and urban local body (ULB) levels. “The underutilisation of funds under SBM-U 2.0 is mainly due to delay in planning, revisions in action plans by states, and lack of proper technical know-how at the city level for implementing projects,” Sahu said while responding to a query from Bharat Rashtra Samithi (BRS) MP KR Suresh Reddy.

According to the data presented, smaller states and UTs have shown relatively higher utilisation. Puducherry and Delhi top the list, with around 38% of their allocated funds being spent. Telangana, Chandigarh, and Manipur also feature among the top five performing regions in terms of fund utilisation. By contrast, some large states, including Madhya Pradesh and Gujarat—both recognised previously for good performance in the government’s Swachh Bharat awards—have shown lower utilisation, with Madhya Pradesh at 21% and Gujarat at only 13%. Certain UTs, such as Dadra & Nagar Haveli and Daman & Diu, have reportedly made no progress under the mission.

Sahu highlighted that the Union government has been proactively engaging with states and ULBs to improve fund utilisation and accelerate project implementation. Regular interactions are conducted with principal secretaries, secretaries, and mission directors at the state level to review financial progress. Additionally, central teams are undertaking field visits to provide on-ground support and monitor implementation. Technical guidelines and handholding advisories have been disseminated to states and ULBs, supplemented with capacity-building programmes to enhance project execution.

To facilitate smoother procurement and project implementation, model documents such as Model Requests for Proposals (RFPs) and Model Concession Agreements (MCAs) have been prepared and notified, enabling urban local bodies to readily use them for project procurement. However, despite these measures, significant gaps remain in fund utilisation, particularly in larger states and certain UTs.

The Swachh Bharat Mission – Urban 2.0 was launched in October 2021 with the objective of ensuring safe sanitation, proper solid waste management, and the clean-up of legacy waste sites across cities in India. The mission targets multiple aspects of urban cleanliness, including upgrading existing sanitation infrastructure, managing solid waste in a sustainable manner, and addressing legacy dump sites in high-load urban areas.

In a related initiative, Union Minister of Housing and Urban Affairs Manohar Lal Khattar launched the ₹3,000-crore Dumpsite Remediation Accelerator Programme in November to expedite the clearance of 245 legacy waste dump sites across India. Among these, 214 locations are classified as high-load sites that have posed persistent challenges in waste management and urban sanitation. This flagship initiative aims to accelerate remediation efforts, bringing environmental and public health benefits to affected urban areas.

Experts note that delays in utilisation of SBM-U funds not only slow down sanitation and waste management improvements but also risk the lapse of allocated resources. With less than a year left in the mission’s timeline, states and UTs face increasing pressure to complete planning and implementation of sanctioned projects, ensure timely procurement, and accelerate infrastructure deployment to avoid forfeiting central allocations.

The underutilisation also reflects wider challenges in urban project management, including limited technical capacity at municipal levels, procedural bottlenecks, and a lack of coordination between state authorities and central agencies. Capacity-building initiatives and field-level handholding, as mentioned by the Ministry, are steps to bridge these gaps, but more active monitoring and accountability mechanisms may be needed to ensure full utilisation of funds before the mission concludes.

While smaller states and UTs have demonstrated relatively better performance, disparities in fund utilisation highlight the need for a differentiated approach. Larger states with more complex urban networks may require additional technical support, streamlined procurement processes, and enhanced project oversight to ensure timely and efficient execution of SBM-U initiatives.

As the mission enters its final year, the central government’s continued engagement with states, proactive monitoring, and technical support are expected to play a critical role in bridging the utilisation gap. The successful deployment of funds is crucial for meeting the mission’s objectives of providing universal sanitation coverage, effective solid waste management, and environmentally sustainable urban development.

Officials in the Ministry of Housing and Urban Affairs were unavailable for comment regarding further remedial actions to boost fund utilisation. However, the ongoing review mechanisms and capacity-building programmes signal a concerted effort to accelerate project implementation and ensure that allocated funds translate into tangible improvements in urban sanitation and cleanliness across India.