3 days ago

CAG Finds Tamil Nadu Smart City SPVs Lacked Autonomy

The CAG examined how Smart Cities Mission projects were managed in Tamil Nadu.

It found that the special companies created for the mission did not have enough independence.

They had far less capital than required, and most sampled cities did not have full-time chief executives.

Many projects were built outside the areas approved for smart-city development.

Some mission money was used for regular municipal needs, such as street-cleaning machines and electricity bills.

Several parking facilities, shops, and a tourism plaza were unused or only partly used.

This meant that expected income from these projects was not earned.

The CAG also said municipal corporations kept revenue that was supposed to strengthen the special companies.

Key facts

Paid-up capital: SPVs had Rs 10 lakh instead of the mandated Rs 200 crore.
Leadership: Six of seven sampled cities did not appoint full-time chief executive officers.
Projects outside zones: Seventy projects costing Rs 655.43 crore were executed outside approved Area-Based Development zones.
Unplanned projects: Forty-four unplanned projects worth Rs 623.86 crore were undertaken; 21 were entirely outside Area-Based Development limits.
Commercial assets: Multi-level parking facilities and commercial complexes in four cities cost Rs 115.92 crore but could not be fully used.
Madurai tourism plaza: A Rs 2.62-crore tourism plaza remained idle and unmaintained for more than three years.
Retained revenue: Municipal corporations retained Rs 57.72 crore generated by completed smart-city assets.

theprint.in · 3 days ago