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

Comptroller and Auditor General of India

Page 23 of 110

7
Chapter II
2.1 Selection of Smart Cities
As per the Mission Guidelines, the selection of smart cities was carried out in
two stages. In the first stage cities in a State compete on conditions prescribed
and the scoring criteria laid out in the guidelines. The highest scoring cities were
to be shortlisted and recommended to participate in the second stage of the
national competition. MoHUA evaluated the smart city proposals of the
shortlisted cities and announced the final list of selected 100 smart cities.
HPSC allowed (June 2015) 117 City Corporations to participate in the first stage
against the allocated six smart cities8 for Karnataka. These Corporations
submitted their self-assessed score card to the SLNA. SLNA after evaluation of
the score cards recommended the top six scoring cities, viz., Belagavi,
7 Bengaluru, Hubballi-Dharwad, Mysuru, Mangaluru, Davanagere, Belagavi, Ballari,
Vijayapura, Kalaburagi, Shivamogga and Tumakuru.
8 In addition, Bengaluru was selected (June 2017) as the seventh smart city based on the
request of the State Government.
Selection of cities through smart city challenge process and preparation
of Smart City Proposals by the selected cities were the introductory
milestones in the implementation of the Mission. As against 135 goals
specified in the SCP of smart cities aligned to nine strategic pillars, the
achievement was 68 only and other projects are in progress. Smart
cities dropped 161 out of 544 (30 per cent) projects originally planned,
which was against MoHUA instructions.
As against ₹817.42 crore allocation under Pan City, projects were taken
up to the tune of ₹1,462.67 crore indicating diversion of funds from
ABD to Pan City interventions. Addition of non-ICT projects under
Pan City was in contravention of the guidelines.
Non-provision of utility ducts in SPVs other than BenSCL necessitated
frequent digging up of the carriageway of the road for laying of utility
lines. The intended knowledge sharing and support under sister city
concept could not be achieved between Davanagere and Bareilly as
only one video conference was held and no city visits took place during
the MoU's one-year validity.
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