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

Chapter-IV
52
the above project was submitted and approved in 32nd board meeting
(February 2024).
Thus, even after incurring an amount of ₹6.52 crore, the water/river front
development projects envisaged (under Sl. No.1) were not completed.
Further, due to dropping of works and non-identification of corresponding
alternative works MSCL will not be able to utilise an amount of ₹51.8541
crore allocated funds leading to its lapsing.
The State Government replied (April 2025) that several projects were
dropped in the Board of Directors meeting held on 29.02.2024, including
the Area Development of Sulthan Bathery, the Upgradation of the existing
water jetty, and the Open-Air Theatre and Water Sports Park at Nayar
Kudru. The Pedestrian Sea River Link Bridge at Sulthan Bathery, originally
budgeted at ₹35 crore, was revised into a ₹65 crore Road Bridge project with
MSCL Board and HPSC approval, ₹30 crore from the dropped projects has
been reallocated to the Road Bridge project. The remaining funds have been
directed to the ‘Development of DC Office’ project.
The reply confirms that most projects were awarded without obtaining the
necessary statutory clearances, leading to a shortfall in the intended benefits
and the failure to fulfil their original purpose.
Recommendation 7: The State Government should establish adequate co-
ordination mechanism with the end user departments to ensure that the
technologies adopted conformed to their specification and that the assets
created were utilised and maintained.
4.11 Provision of Basic Amenities
The projects taken up under “provision of basic amenities” included works
related to 24 × 7 water supply, complete Underground Drainage (UGD) network
with sewage treatment plant, construction of drains etc. The physical and
financial progress of the projects undertaken in six cities, excluding
Bangalore42, under the "Provision of Basic Amenities" as of June 2024 is
outlined in Table 4.12.
41 Upgradation existing water jetty at ₹9.92 crore and Open air theatre and water sports park
at Nayar Kudru at ₹41.93 crore.
42 Bengaluru has not undertaken any projects under the ‘Provision of Basic Amenities’.