CAG report highlights lapses in Dehradun Smart City projects

THe Comptroller and Auditor superior general (CAG) of republic of india has flagged shortcomings in the effectuation and sustainability of projects below the smarting Cities Mission (SCM) in Dehradun in a report covering the period from 2017–18 to 2022–23.The report was tabled in the state assembly on Tuesday and reviewed the functioning of Dehradun Smart City Limited (DSCL), the special purpose vehicle incorporated in September 2017 under the Companies Act, 2013, to implement the mission in the city.The Centre launched the Smart Cities Mission on June 25, 2015, with the aim of promoting cities that provide core infrastructure, better quality of life, a clean and sustainable environment, and the application of smart solutions. Dehradun was selected in the third round of the mission in June 2017 and was the only city from Uttarakhand chosen under the programme.Under the scheme, Dehradun was allocated a budget of ₹1,000 crore under an equal sharing pattern between the Centre and the state. During the audit period, funds amounting to ₹737.50 crore were released, of which ₹634.11 crore was spent between 2016–17 and 2022–23.The audit found several shortcomings in the implementation of projects and in the operation and maintenance of the infrastructure created under the mission, raising concerns about their long-term sustainability.According to the report, several smart solutions proposed in the detailed project report were either dropped during execution or remained non-functional due to inadequate planning. A biometric and sensor-based solid waste management module developed in March 2022 under the e-governance solutions of the Doon Integrated Command and Control Centre project remained unused till February 2025, rendering an expenditure of ₹4.55 crore unfruitful.Similarly, e-rickshaws procured at a cost of ₹0.90 crore under the Smart Waste Vehicles project remained non-operational for nearly two years, highlighting weak management by DSCL.The report also noted that smart solutions installed in three government schools in Dehradun under the Smart Schools project, including interactive boards, computer labs, projectors, CCTV cameras and biometric attendance systems costing ₹5.91 crore, remained non-functional as the schools were unable to bear the high electricity costs required for their operation.The audit further observed sustainability concerns in projects such as the Doon Integrated Command and Control Centre and the e-bus initiative due to the absence of viable revenue generation models such as advertisements, smart Wi-Fi, royalties from e-governance applications and data monetisation.Instances of wasteful expenditure were also highlighted, including ₹2.62 crore spent on environmental sensors and ₹3.24 crore on a multi-utility duct. The report also pointed out deficiencies in the execution of the Smart Road project, particularly in the implementation of uniform carriageway sections and dedicated pedestrian pathways.The CAG also flagged irregularities in payments to the project management consultant (PMC). It noted that the payment structure lacked milestone-based provisions, leading to payments despite incomplete projects. Deviations in manpower deployment and unverified remuneration claims resulted in irregular payments amounting to ₹5.19 crore.Delays ranging from 19 months to 38 months were reported in the completion of eight projects as DSCL failed to provide hindrance-free work sites to implementing agencies. The report also stated that DSCL did not effectively enforce penalties amounting to ₹1.41 crore for project delays and failed to recover an unutilised amount of ₹19.06 crore from an implementing agency.Additional issues included cost escalation of ₹10.34 crore, execution of work worth ₹2.93 crore without inviting tenders, loss of interest amounting to ₹6.20 crore and non-recovery of ₹0.81 crore as interest on mobilisation advances.The audit also pointed to a lack of coordination among line departments despite the presence of a state-level high-powered steering committee and an inter-departmental coordination task force. It further noted that the intended role of the special purpose vehicle was weakened due to the absence of full-time appointments to key posts such as chief executive officer, additional chief executive officer and finance controller in DSCL. Instances of inadequate quality control during project implementation were also observed in the report.