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

Implementation of Projects and Monitoring
53
Table 4.12: Physical and financial progress under provision of basic
amenities
Sl.
No
Smart City Physical (in numbers) Financial progress (₹ in crore)
Total Completed Ongoing Project Cost Expenditure
1 Belagavi 3 3 0 1.85 1.85
2 Davanagere 64 61 3 712.79 508.83
3 Hubballi-Dharwad 14 11 3 434.92 254.84
4 Mangaluru 35 19 16 685.86 511.56
5 Shivamogga 8 8 0 48.50 46.50
6 Tumakuru 23 23 0 82.87 73.76
Grand Total 147 125 22 1,966.79 1,397.34
Source: Information furnished by Smart Cities
Audit test checked 23 out of 147 projects taken up under “Provision of basic
amenities”. The observations are as detailed below:
4.11.1 Non-linking of sewerage infrastructure created under the Mission
with Central and State projects
Providing underground drainage network was one of the projects outlined in the
approved SCP of Mangaluru City. Since the Asian Development Bank and
AMRUT schemes were under various stages of implementation in the city, the
scope of the project taken up under the Mission was restricted to providing and
laying of laterals and house service connections falling within the ABD areas.
The total expenditure incurred on UGD package projects was ₹9.44 crore.
On scrutiny of records, Audit observed that the completion and commissioning
of UGD package was hampered due to non-execution of manholes in works
taken up under AMRUT scheme by the KUIDFC. Consequently, MSCL
diverted the sewage lines to other manholes which were already choked, and
network was in danger of complete collapse. The entire sewerage network laid
in UGD package under the smart city mission was to be connected to the trunk
sewers laid under the AMRUT scheme to make the UGD networks
functional. Thus, non-execution of manholes under AMRUT scheme resulted
in the entire sewerage network laid under UGD packages of the Mission
dysfunctional rendering the expenditure of ₹9.44 crore incurred on the projects
unfruitful.
The State Government replied (April 2025) that due to certain issues the
Contractor appointed by KUIDFC did not perform and had to be terminated by
KUIDFC, hence the 27 manholes which are critical for Mangaluru Smart City
Limited network were not completed. The fact remains that the manholes were
not constructed till date.
4.11.2 Non-diversion of sewage led to wastage of drinking water
Amanikere lake was mainly fed by storm/rainwater from natural watersheds to
its north and east. The municipal stormwater carried significant pollutants due
to mixing up of sewage and sullage. The DPR for STP at Amanikere lake