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

Chapter-I
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plan financing and plan implementation tools (e.g. land pooling/land
reconstitution) with provision for affordable housing, especially for the poor.
By this, the mission aimed to meet the needs of the expanding population
development.
(iv) Pan-city Development: This included application of selected Smart
Solutions to the existing city-wide infrastructure which would involve the use
of technology, information and data to make infrastructure and services better.
The Smart City proposal of each shortlisted city was expected to encapsulate
either a retrofitting or redevelopment or greenfield development model, or a mix
thereof and a Pan-city feature with Smart Solution(s).
1.1.2 Selection process
The mission covered 100 cities on the basis of an equitable criteria1, with each
State having at least one smart city. A Smart City Proposal (SCP) containing
the vision, plan for mobilization of resources and intended outcomes in terms
of infrastructure up-gradation and smart applications should be prepared by
States/ULBs with technical assistance support either by hiring consulting firms2
or by engaging with handholding agencies3. Further, during preparation of
SCPs, the States/ULBs were expected to incorporate convergence of many of
the sectoral schemes4 of the Central/State Government with the SCM so that
comprehensive development could be achieved.
The Mission involved a two-stage selection process, Stage-1: Intra-state and
Stage-2: City Challenge, based on the idea of competitive and cooperative
federalism. Clause 9 of SCM Guidelines details the process of selection of
Smart Cities and the same is detailed Exhibit 1.1.
1 A formula was used which gave equal weightage (50:50) to urban population of the
State/Union Territory and the number of statutory towns in the State/UT.
2 The Ministry of Housing and Urban Affairs (Erstwhile MoUD) technically qualified a
panel of consulting firms and the States/UTs were at liberty to draw upon this panel. The
States had the option of appointing a consulting firm outside the panel by following
transparent and fair procedures as per State financial rules.
3 Number of foreign Governments had offered to provide Technical Assistance support,
including bilateral and multilateral institutions, viz., World Bank, Asian Development
Bank, Japan International Cooperation Agency, United States Trade and Development
Agency, French Development Agency etc.
4 Atal Mission for Rejuvenation and Urban Transformation (AMRUT), Swachh Bharat
Mission (SBM), National Heritage City Development and Augmentation Yojana
(HRIDAY), Digital India, Skill development, Housing for All, etc.