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

Financial Management
21
Table 3.3: Amount released by SPVs directly to Government Departments/
Agencies as of June 2024
Sl.
No
Smart City Amount
transferred
(₹ in crore)
Government
Department/
Agency
Purpose Date of
transfer
Present Status
1
Tumakuru
20.71
Health and
Family
welfare
Construction of
Trauma Care Centre
at district hospital
16.08.2019 The funds were
utilised
(December 2021)
after a gap of two
years
2 14.46 KUWSDB
Intervention and
additional
improvement of
water supply
package I and II
31.07.2019 The work was
completed on 10
July 2020
3
Mangaluru
114 KUIDFC
24×7 water supply
project to Mangaluru
city under
KIUWMIP21
28.05.2020
to
09.02.2023
An amount of
₹114 crore has
been utilised till
April 2023.
4 2.20 MCC
Construction of
service bus stand
near State Bank
01.07.2022
to
20.10.2022
Completed
5
Davanagere
0.87 KUIDFC
Construction of
toilets for
Government
educational
institutions under
KIUWMIP
05.05.2022 The funds were
released as the
share of
Davanagere City
Corporation
under KIUWMP
though not part of
SCP
6 1.14 KUIDFC
Extension of raw
water transmission
line from Kundwada
WTP under Jalasiri
Scheme
25.06.2021 The funds were
released from
savings amount
of dropped
projects
Source: Information furnished by Smart Cities
Audit also noticed that Mangaluru and Davanagere smart cities did not enter
into tripartite agreements with the government agencies and bidders as
stipulated in the Mission guidelines.
The State Government replied (April 2025) that the works were taken up by
KUIDFC and other agencies and the funds were contributed from SPVs which
were approved by the Board.
The reply was not acceptable as the advisory issued was in extension of Mission
guidelines which prescribed that Mission funds should not be diverted from the
SPVs. Further, the funds deposited were utilised only after one to two years
from the date of release indicating that there was no immediate requirement.
21 Karnataka Integrated Urban Water Management Investment Programme.