60% smart city projects faced delays in Haryana: CAG report

In Haryana, the nodal agencies for implementing the mission in Karnal and Faridabad are the Special Purpose Vehicles (SPVs) created specifically for each city—Karnal Smart City Limited (KSCL) and Faridabad Smart City Limited (FSCL). These SPVs function under the administrative control of the Urban Local Bodies (ULB) department.

The Faridabad Municipal Corporation identified an Area-Based Development (ABD) zone of 1,267 acres comprising Sectors 19, 20, 20A, 21B, and 21D to transform it into a compact, well-planned urban space under the retrofitting model. Pan-city development projects were also considered for smart solutions.

Similarly, the Karnal Municipal Corporation designated an ABD area of 720 acres around Ghanta Ghar Chowk, Kunjpura, and Mughal Canal Market, with plans to introduce state-of-the-art smart amenities and make it a lighthouse for the city.

According to the CAG report, the SPVs planned 167 projects worth Rs 1,881.75 crore, of which 152 were awarded and 112 completed by June 2024. However, “only 45 projects met their scheduled timelines, while 67 projects faced delays ranging from three to 1,506 days”.

Elaborating on the delays, the ULB department informed the auditors that “the smart city mission were brownfield projects and retrofitted in the existing infrastructure created before the implementation of Smart City Mission which encountered several challenges such as shifting of existing utilities, inter departmental consultation with various departments, Covid lockdown, Commission for Air Quality Management (CAQM) directions for closure of projects.”

The department added that “the delay was acknowledged by the Centre and completion deadline was extended up to March 2025.”