The cities which have the capacity to raise an initial fund of Rs 50 crore and additionally spend Rs 200 crore annually for next five years, will be selected for the 'Smart City' project.
The Maharashtra government will recommend a proposal of 10 potential smart cities to the Centre by July end.
"The primary condition for being selected for the Smart City project is the local civic body should be capable to raise its own fund to the tune of Rs 50 crore for next five years and can spend Rs 200 crore every year for next five years," an official in the state Urban Development Department (UDD) said.
Financial capability and planning on how to implement the scheme will be the main criteria for shortlisting the cities, he said.
"The urban local bodies will have to compete on the basis of scores and marks given for the implementation of the Swachh Bharat Mission (total score 10), online grievance redressal system (score 5), collection of internally generated revenue such as taxes, fees, etc (score 10)," he said.
The municipal councils and corporations will have to submit their visions of smart cities and their scoring criteria before July 10 to UDD, he said.
"Later, we will shortlist the ten cities," he added. The state government issued instructions to 26,municipal corporations and 18 municipal councils on Wednesday based on the guidelines issued by the Centre.
Principal Secretary of UDD, Manisha Mhaiskar confirmed that the state has sought proposals from municipal councils and corporations to participate in the Smart City project.
"As per the guidelines issued by the Union Urban Development Department, we will select cities which have the potential to become a smart city. We will complete the procedure by July 30 as we have to recommend the names of 10 such cities to the Centre by then," Mhaiskar said.
The state Cabinet has to approve the official decision taken by the municipal councils and corporations to implement Smart City project in the state.
The proposal is in process and is expected to be approved in the next state Cabinet meeting after Chief Minister Devendra Fadnavis returns to Mumbai from his US tour.