Tamil Nadu has requested the Union Ministry of Housing and Urban Affairs to select 15 of its cities for Smart City 2.0, which is expected to launch by 2025. Under this initiative, 100 cities will be chosen through a special purpose vehicle for civic, mobility, and infrastructure development. Municipal Administration Minister KN Nehru and DMK Parliamentary Party Leader Kanimozhi presented the state's proposal to Union Minister Manohar Lal Khattar.

When the Smart City program was launched in 2015, Tamil Nadu was allocated 12 cities, including Chennai, the second-highest number after Uttar Pradesh's 13 cities. The state has utilised about 98 per cent of the allocated Rs 180 billion under the scheme, which has now been extended until March 31, 2025.

This time, MAWS (Municipal Administration and Water Supply Department) Secretary D Karthikeyan mentioned that top-tier cities such as Chennai, Coimbatore, and Madurai would be prioritised. He added that the state would also advocate for the inclusion of fast-growing cities, and the types of projects would be decided after assessments and according to Union government parameters.

A city is selected based on successful model projects, each of which must include 10 per cent of its energy needs sourced from solar power, wastewater recycling, intelligent traffic management, citizen safety, and smart digital applications for public use. Criteria also include the implementation of the Swachh Bharat scheme, which earns 10 points; the operation of an online grievance redressal system, earning 5 points; penalties for delays in service delivery, which also earn 5 points; and an increase in the total collection of internally generated revenue, which adds another 10 points.

In Chennai, of the Rs 10 billion allocated, Rs 6 billion was spent in T Nagar, with only the pedestrian plaza remaining functional. Residents and experts have suggested that development should be more inclusive and extend to growing areas like OMR. Others emphasised that the focus should be more on mobility, with KP Subramanian, a former urban engineering professor at Anna University, recommending the development of a Bus Rapid Transport System and non-motorized transport.

Activists are calling for the release of the Smart City corruption report submitted by the PWC David Committee. Jayaram Venkatesan, Convenor of Arappor Iyakkam, questioned why the government had not released the report for two years, stating that both ministers and officials were aware of the corruption, and the public deserved to know. He argued that the new scheme would likely turn into a money-making exercise.