Kohima, Sept 15: The Comptroller and Auditor General of India (CAG) has raised concerns about the implementation of Smart City projects in Kohima, the capital city of Nagaland. In its report for the period ending March 2022, the CAG highlighted several irregularities in the Kohima Smart City mission.
The CAG’s report, which was based on a performance audit spanning from 2016 to 2021, aimed to assess the effectiveness and efficiency of the smart city projects in Kohima. It revealed several shortcomings in the project’s execution.
According to the report, the Kohima Smart City Development Limited (KSCDL), the entity responsible for implementing the Smart City Mission in Kohima, failed to prepare a feasible report and revenue model for the projects. Additionally, core infrastructure elements were not given priority, as outlined in the Smart City Guidelines (SCG).
The KSCDL operates as a Special Purpose Vehicle (SPV) for the Smart City Mission in Kohima, working within the jurisdiction of the Kohima Municipal Council (KMC) and covering specific wards, including Naga Bazar, Dak Lane, and Kitsubozou.
One significant issue highlighted in the report was the improper planning and implementation of projects that went beyond the scope and objectives of the Smart City Mission. This led to wasteful spending of Rs 70.75 lakh on the procurement of water ATMs and water tankers.
The CAG report disclosed that the KSCDL had allocated Rs 46.63 crore for water supply, encompassing Area Based Development (ABD), pan-city development, and convergence/PPP mode. However, it was found that water ATMs and tankers were not approved by the Board of Directors (BoD).
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The Kohima Chamber of Commerce and Industries (KCCI) was tasked with arranging operators and locations for water ATMs, with revenue-sharing agreements in place. Surprisingly, none of the water ATMs were operational. No feasibility report was prepared to assess the actual need and viability of the water ATM and water tanker projects, and procurement was carried out without a Detailed Project Report (DPR).
The CAG report also criticized weak financial management, which resulted in delayed fund releases ranging from three to 15 months and a shortfall in the release of the state’s matching share amounting to Rs 178 crore.
Furthermore, the report revealed that the KSCDL made payments to three firms—Bharat Electronics Limited, M/s WAPCOS, and M/s Symbios Creations Pvt Ltd—without deducting Tax Deducted at Source (TDS) on Income Tax. Funds were also transferred to government departments/agencies against advisory warnings from the ministry.
The lack of a feasibility assessment before project implementation led to additional wasteful spending of Rs 85.57 lakh on the Construction of Multi Utility Duct.
Additionally, the audit found that Rs 163.64 lakh was paid to contractor M/s Viu Angami & Sons for the construction of a Community Hall cum Car Parking at New Market Colony in Kohima. Full payment was made to the contractor without the actual execution of ten items of work, indicating “fictitious entries” that resulted in an excess payment of Rs 11 lakh.
In response, the CAG recommended that responsibility be assigned to the officers responsible for false entries and the release of funds without the proper execution of work. The report highlights the need for stricter oversight and adherence to guidelines in the implementation of Smart City projects in Kohima.
