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

Chapter-III
16
Table 3.1: Release and expenditure of Mission funds to SPVs
(₹ in crore)
Sl.
No
Name of the
Smart City
Funds Received Expenditure
GoI GoK Total
1 Belagavi 490.00 500.00 990.00 859.14
2 Bengaluru 488.00 500.00 988.00 812.06
3 Davanagere 490.00 500.00 990.00 830.82
4 Hubballi-
Dharwad
490.00 500.00 990.00 791.22
5 Mangaluru 416.50 426.50 843.00 735.57
6 Shivamogga 490.00 500.00 990.00 904.20
7 Tumakuru 490.00 500.00 990.00 855.15
Total 3,354.50 3,426.50 6,781.00 5,788.16
Source: Information furnished by Smart Cities
3.2 Non-mobilisation of financial resources for Mission funding
As per the clause 11.3 of Mission guidelines, the cities were expected to plan
with as much larger outlay as possible in addition to the funds being made
available by State and Central Governments. The cities had multiple financing
options such as convergence of schemes and initiatives of Central and State
Governments, generating own resources, proposing Public Private Partnership
(PPP) projects, market borrowings, loans and even by inviting equity partners
for the projects.
The funding mechanism other than Mission grants envisaged in the SCPs of
seven smart cities is provided in Table 3.2.
Table 3.2: Funding mechanism projected in the SCPs
(₹ in crore)
Smart city Revenue16
Generating
Projects
14th
FC
Convergence17
with Central
and State
Schemes
Leverage
borrowings
from
financial
institutions
PPP Total
Belagavi 1,498.92 3.70 1,851.00 NIL 1,006.10 2,860.80
Bengaluru 371.87 Nil 985.00 Nil 234.28 1,219.28
Davanagere 4,325.04 Nil 168.00 Nil 168.00 335.56
Hubballi-
Dharwad
479.00 Nil 485.00 114 (World
Bank)
170.00 769.00
Mangaluru 473.59 Nil 509.00 Nil 517.00 1,025.95
Shivamogga 260.70 Nil 127.00 Nil 468.00 595.60
Tumakuru Not
Specified
Nil 883.00 Nil 344.00 1,227.00
Total 7,409.12 3.70 5,008.00 114.00 2,907.38 8,033.19
Source: Information furnished by KUIDFC/SPVs
16 Generating funds through lease of market/shops, vehicle parking, street vendors and digital
advertising boards etc.
17 Convergence of Sewage treatment plan under Amrut scheme, construction of toilets under
SBM, construction of affordable houses under Prime Minister Awas Yojana and upgradation
of District hospital under National Health Mission etc.