Poor Planning and Financial Mismanagement Lead to Delays in Patna Smart Cities Mission Projects, Says CAG

The Comptroller and Auditor General of India (CAG) has criticised the financial management and planning of the Smart Cities Mission in Patna. According to a report, poor planning and the inclusion of impractical projects led to delays or incomplete execution. The CAG noted that Patna Smart City Limited (PSCL) and the Urban Development and Housing Department (UD&HD) of Bihar government included unfeasible projects among the 44 initially approved ones.

Funds were diverted for unapproved projects, and incorrect utilisation certificates were submitted, highlighting deficient financial management by PSCL. The compliance audit report for the year ending March 31, 2022, was presented in the Bihar assembly on Thursday. The report also pointed out poor contract management, noting that the complete scheme did not meet its objectives. Mobilisation advance was given to vendors without finalising the scope of work.

Project Feasibility Issues

By October 2022, 29 out of the 44 approved projects had not started due to feasibility issues. These issues included projects already being executed by other agencies, lack of available land, non-requirement of rooftop farming, and potential crowding in already congested areas. Consequently, PSCL, with approval from the high-power steering committee (HPSC), dropped these 29 projects worth Rs 1,816.82 crore.

The total cost of the remaining 15 projects was revised to Rs 381.06 crore. To address the city's needs and feasibility concerns, authorities added 14 new projects under the mission, valued at Rs 448.94 crore. Despite these adjustments, four ongoing projects were found to be lagging behind their scheduled completion dates during the audit.

Financial Mismanagement

The CAG's report highlighted significant issues with financial management within PSCL. Funds were misallocated to unapproved projects, and incorrect utilisation certificates were submitted. This mismanagement contributed to delays and incomplete project execution under the Smart Cities Mission in Patna.

The report emphasised that poor planning was evident from the inclusion of impractical projects in the initial list of 44 approved ones. This oversight by PSCL and UD&HD resulted in delays and incomplete execution of several projects.

The contract management for the mission was also criticised for not fulfilling its objectives. Mobilisation advances were given to vendors without finalising the scope of work, further complicating project execution.

The CAG's findings underscore the need for better planning and financial management in future initiatives. Addressing these issues is crucial for ensuring timely and successful project completion under such missions.