1 week ago
CAG Questions Chennai Smart City Mission Implementation
Chennai completed many Smart City projects, but an audit found problems with how the work was planned and managed.
The city originally approved 48 projects.
Eight of those projects were later dropped, and 20 new projects were added.
The audit said there was not enough explanation for dropping the original projects.
Some new projects were taken up without enough public consultation.
Thirteen projects were built outside the area chosen for concentrated development.
The audit also said some money was used for purposes not allowed under the mission rules.
It found that certain projects lacked required approvals and that the city’s project company had far less capital than expected.
Chennai’s original Smart City proposal included 48 projects worth Rs. 1,366.25 crore.
Eight approved projects worth Rs. 279.03 crore were dropped, while 20 unplanned projects worth Rs. 189.66 crore were added.
Thirteen projects costing Rs. 76.32 crore were implemented outside the approved area-based development zone.
The audit flagged Rs. 16.23 crore in spending as diverted from permitted administrative and office expenses.
CAG also cited missing approvals and Chennai Smart City Ltd.’s Rs. 10 lakh paid-up capital against the prescribed Rs. 200 crore.
- Who
- The Comptroller and Auditor General of India audited Tamil Nadu’s Smart Cities Mission implementation, including Chennai Smart City Ltd.
- What
- The audit reviewed whether Chennai’s Smart City projects, spending, approvals and project-management arrangements followed the approved mission framework.
- Where
- The audit examined Smart Cities Mission projects in Chennai, including projects inside and outside the approved area-based development zone.
- When
- The performance audit covered April 2016 to March 2024.
- Why
- CAG raised concerns about changed project priorities, work outside the approved area, questionable fund use, missing approvals and inadequate SPV capitalization.
Audit Concerns
Completion Perspective
Project changes
Audit Concerns
CAG said eight approved projects were dropped without adequate recorded justification and 20 projects outside the original proposal were added without adequate public consultation.
Completion Perspective
The implementation record shows that Chennai completed 49 projects worth Rs. 946.18 crore, although the article does not provide a response from Chennai Smart City Ltd. defending the changes.
Compliance versus delivery
Audit Concerns
CAG focused on whether projects were implemented in approved locations, financed through permissible mechanisms and preceded by required approvals.
Completion Perspective
The completion figures indicate substantial project execution, but the article does not establish that completion alone resolved the audit’s concerns.
Key facts
- Original proposal
- 48 projects worth Rs. 1,366.25 crore
- Dropped projects
- Eight projects worth Rs. 279.03 crore
- Added projects
- 20 projects not in the original proposal, worth Rs. 189.66 crore
- Completed projects
- 49 projects worth Rs. 946.18 crore
- Projects outside approved area
- 13 projects costing Rs. 76.32 crore
- Flagged fund diversion
- Rs. 16.23 crore
- Paid-up capital
- Rs. 10 lakh, compared with the prescribed Rs. 200 crore
Sources
Related news
CAG Finds Tamil Nadu Smart City SPVs Lacked Autonomy
Chennai’s Smart City Mission Delivers Progress, but Falls Short
Tamil Nadu Tender Row Over Works Inaugurated Before Bids
Tamil Nadu Transfers Tambaram Commissioner Over Tender Allegations
Karimnagar Council Approves 180 Proposals, Plans Rs 840-Crore Development
Tamil Nadu Targets 50% Public Transport Share by 2048
Audit Finds India’s Green Mission Falling Far Short
NRC Disputes Intensify Across Manipur and Assam States
South Eastern Railway Expands Station Drinking Water Quality Measures
Chennai corporation plans Mambalam Canal desilting before northeast monsoon
PAC To Probe Mumbai Railways' Water And Sanitation Gaps
