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

Chapter-IV
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stated that due to rush of work and with a good intention to fast-track award of
works, LoA was issued through a letter instead of e-procurement portal.
The reply of the Government is not acceptable for the reason that the time
allowed for completing the bidding process was inclusive of above processes.
The issue of manual LoA was in contravention of e-procurement mandate.
Recommendation 3: Government should ensure availability of full time CEOs
for better implementation of the scheme and effective coordination with
multiple stake holders.
Government should exercise due diligence in fixing authorised share capital
and paid-up capital of the SPVs commensurate with the commercial financial
models.
Government should ensure timely completion of tender awarding process and
issue of LoAs as mandated in e-procurement.
A PAN CITY PROJECTS
4.6 Pan City Development
Pan City Development envisaged application of selected smart solutions to the
existing city-wide infrastructure through use of technology, information and
data to provide better infrastructure and services viz., smart solutions in
transport sector to reduce average commute time, water recycling and smart
metering for better water management. The progress of ICT enabled smart
governance projects as of June 2024 in respect of six cities excluding HDSCL23
are indicated in Table 4.4.
Table 4.4: Physical and financial progress of ICT enabled smart
governance projects as of June 2024
Sl.
No
Smart City Physical (in numbers) Financial (₹ in crore)
Total Completed Ongoing Project Cost Expenditure
1 Belagavi 8 8 0 64.30 67.16
2 Bengaluru 4 4 0 147.89 77.51
3 Davanagere 7 6 1 134.62 63.56
4 Mangaluru 8 7 1 85.80 61.39
5 Shivamogga 6 6 0 57.20 58.71
6 Tumakuru 17 16 1 100.88 65.11
Grand Total 50 47 3 590.69 393.44
Source: Information furnished by KUIDFC
Audit test checked 12 out of 5024 (24 per cent) Pan City projects implemented
in seven cities. The audit observations are as follows:
23 There were no ICT enabled projects.
24 Out of 238 projects taken up under Pan City, only 50 were ICT enabled projects and
remaining were non-ICT projects viz., water recycling, smart meters, battery operated
rikshaws, smart school, bus shelter etc.