Smart City Projects in Karnataka have failed to mobilise funds: CAG

The Comptroller and Auditor General (CAG) of India has found that seven cities in Karnataka — Bengaluru, Belagavi, Davanagere, Hubballi-Dharwad, Mangaluru, Shivamogga, and Tumakuru — selected under the Smart Cities Mission failed to mobilise financial resources and were largely dependent on mission grants.

The CAG report, tabled in the Legislative Assembly on Thursday, said that although the seven cities proposed projects worth ₹2,907.38 crore under the Public-Private Partnership (PPP) model, projects worth only ₹1,091.05 crore were taken up, of which just 13 projects valued at ₹329.68 crore were completed.

Only 8%

While the Smart Cities had projected revenue generation of ₹7,409.12 crore over a period ranging from five to 30 years, they implemented only 53 projects — about 8% — out of 645 projects envisaged under the revenue-generation model. The Karnataka Urban Infrastructure Development Corporation (KUIDFC) is the nodal agency for implementing Smart City projects in the State.

The report further noted that against an allocation of ₹817.72 crore under the pan-city component, projects worth ₹1,462.67 crore were taken up, indicating a diversion of funds from area-based development (ABD) to pan-city interventions.

The Smart City Proposals had envisaged the development of smart roads in accordance with the TenderSure guidelines. However, except in Bengaluru, the utility ducts provided in smart road projects by other cities did not accommodate all required utilities, resulting in frequent digging of newly laid smart roads to install utility lines.

Idle projects

The CAG also pointed out that infrastructure created in Hubballi-Dharwad at a cost of ₹62.60 crore — including the upgradation of Chittaguppi Hospital, development of a fish market, renovation of the core market, and construction of one-BHK units under the Vani Vilas Development Initiative — have remained idle for over two years.