CAG Report No. 11 of 2025 — Implementation of Smart City Mission, Government of Karnataka

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implemented by the Police and Traffic Department was yet to be carried out
despite several correspondences made with the police department. Similarly,
City Surveillance System and Intelligent Transport Management System
implemented by the Hubballi-Dharwad Bus Rapid Transport System
(HDBRTS) could not be integrated with ICCC due to non-provision of
information such as location of CCTV cameras, data related to bus routes
and stations by HDBRTS. Integration of Centralised Control and Monitoring
System for LED streetlights also was not carried out as the project for
installation of LED light on PPP basis did not materialise. Integration of
disaster management systems, environmental sensors, energy meters, digital
display boards and smart health kiosk were yet to be accomplished.
Utility ducts provided for water supply, gas pipelines, electricity lines etc.,
could not be utilised due to non-feasibility by respective utility departments.
The pipeline laid by Belagavi Smart City Limited for a length of 5.72 km
for waterline in utility ducts could not be utilised as the pressure rating of
pipes laid did not match with that of the pipes laid under the Karnataka
Urban Water Supply Modernisation Project. The gas pipeline laid for 5.751
km did not have provision for stop off valves, squeezer etc., and hence could
not be utilised for gas supply. Tumakuru Smart City Limited (TSCL),
Shivamogga Smart City Limited (SSCL) and Hubballi-Dharwad Smart City
Limited (HDSCL) laid Double Wall corrugated pipes for carrying electricity
cables in underground ducts without considering the inputs from user
departments and without conducting adequate technical investigations. The
infrastructure created by HDSCL at a cost of `62.60 crore such as
upgradation of Chittaguppi hospital, development of fish market, renovation
of core markets and construction of 1BHK units under Vani Vilas
Development Initiative remained idle for more than two years. Entrustment
of works without possession of requisite land and statutory clearances led to
shortfall in achieving the intended benefits in respect of river front works
(Netravathi River bank of Thota and Jappinamogaru village, Mangaluru).
Monitoring lapses included inadequate representation of Urban Local
Bodies in the Director Board of Smart Cities, shortfall and improper conduct
of impact assessment studies and non-appointment of quality supervision
consultants.
Recommendations
1 The Smart cities need to tap resources other than Government grants like
municipal bonds, pooled finance mechanism etc., for long-term
sustainability of the projects taken up.
2. The Government should direct the SLNA to adhere to guidelines issued
in implementation of the scheme and remit the interest dues to GoK/GoI
accounts concerned. Further, the SPVs should invoke contractual
obligations on the agencies for deviations/delays in implementation of the
scheme.