CHENNAI: Tamil Nadu lost the opportunity to develop Dindigul as another Smart City because its initial proposal failed to meet the prescription, while the seven cities selected for the mission substantially altered their project plans, the Comptroller and Auditor General of India (CAG) has found. The findings are part of the CAG’s performance audit of the Smart City Mission in 7 of the 11 selected Smart Cities: Chennai, Coimbatore, Erode, Madurai, Salem, Tirunelveli and Tirupur.
Dindigul was the 12th but was not selected, as its first Smart City Proposal (SCP) did not contain the prescribed sector-wise list of projects for the Area Based Development (ABD) area along with the Pan-city coverage.
Though a revised proposal was forwarded in November 2017, the Centre did not consider. The audited cities had initially proposed 243 projects worth Rs 10,035.58 crore. But 52 of these projects, accounting for Rs.1,602.20 crore, were not implemented.
At the same time, 44 projects worth Rs 623.86 crore that were not part of their original proposals were implemented. Five of these were routine works that should have been undertaken by the respective corporations from their own funds, while 21 were implemented outside the ABD area.
Another significant planning gap was the complete absence of Greenfield development in all 7 audited cities. As many as 70 projects involving Rs 655.43 crore were implemented outside the approved ABD areas.
The 7 cities remained largely dependent on government grants, with little mobilisation through public-private partnerships, borrowings or other sources envisaged under the mission. Against Rs 1,630.03 crore of projects planned through PPP, only 4 worth Rs.16.57 crore were executed in Chennai and Coimbatore.
Dindigul was the 12th city but was not selected, as its first Smart City Proposal did not contain the prescribed sector-wise list of projects for the Area Based Development
The CAG also found that Rs 1,127 crore of the Centre’s share was diverted to Personal Deposit accounts in 2021, contrary to maintaining it in a Single Nodal Account. Delays in transferring funds from the State government to TUFIDCO and subsequently to the Special Purpose Vehicles (SPVs) were also observed.
Municipal corporations continued to retain significant control over project selection and implementation, limiting the role of these agencies. Revenue of Rs 57.72 crore collected by the corporations from deposits, lease rentals, parking and user charges was also not transferred to them.
Around 93 projects requiring statutory approvals had been commenced without obtaining the necessary clearances. Of these, 81 projects worth Rs 1,430.83 crore were awaiting clearances from planning and other authorities, while 12 projects worth Rs 175.27 crore were awaiting approvals from the TN Pollution Control Board.
The CAG also found that 12 projects worth Rs 590.58 crore and another 60 projects worth Rs 625.73 crore had not been placed before the High-Powered Project Sanctioning Committee after being split into smaller packages. According to the audit, this denied the projects the intended expert scrutiny and the possibility of cost savings.
Originally proposed projects: 243
Original project value: Rs 10,035.58 crore
Projects eventually taken up: 414
Completed: 387
Ongoing: 27
Expenditure: Rs 6,341.81 crore
Planned projects not implemented: 52
Valued at Rs 1,602.20 crore
Unplanned projects implemented: 44
Valued at Rs 623.86 crore
Centre’s share diverted to PD accounts: Rs 1,127 crore
Revenue not transferred to SPVs: Rs 57.72 crore
Projects sans clearances: 93