House panel stresses on third-party audit of projects under Smart Cities Mission

New Delhi: The ministry of housing and urban affairs should roll out a third-party assessment of projects in the Smart Cities Mission to fills the gaps ahead of its next phase, a parliamentary standing committee said.

The committee on housing and urban affairs noted that although projects in larger cities have an efficient organization and financial structure, and have performed well, the progress of the mission in many small cities is slow.

In its latest report, the committee said it had recommended third-party assessment of various projects undertaken in the Smart Cities Mission to fill the gaps before taking up the next phase of the mission. But it said the ministry has not responded to the recommendation.

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“The committee therefore reiterates their earlier recommendation for conducting a third-party assessment of the projects implemented under the Smart Cities Mission and the findings thereof may be shared with them,” it said.

According to the committee, the progress of the mission is slow in many small cities, including those in north-eastern states, where city administration lacks robust organizational and financial structures. It also observed that many smart cities do not have the capacity to plan and execute expensive projects under the mission.

According to the data provided by the ministry to the committee, as of 15 June, work orders for all 8,010 projects undertaken in the mission, worth around ₹1.64 trillion, had been made, of which 7,151 projects worth ₹1.43 trillion had been completed. The remaining projects are inadvanced stages of implementation.

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On the committee’s recommendation that the reasons for slow progress should be identified and analysed, and a plan needs to be developed to strengthen the capabilities of the urban local bodies in these smaller cities, the ministry, in its reply, has listed a few reasons for the delays and stated that it has initiated an effort to assess the impact of projects in 100 smart cities through 50 theme-based impact assessment research studies. These studies, currently nearing completion, are also expected to provide suggestions on how these smaller cities can further enhance their capabilities, the ministry noted in its reply.

“The committee would, therefore, like to be apprised of the details and the outcome of the 50 theme-based impact assessment research studies undertaken by 29 institutes of national repute along with the actions taken or being taken by the ministry on the suggestions made by them,” the panel said in its report on the action taken by the government on its previous recommendations.

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The panel had earlier also recommended putting in place a robust mechanism to ensure effective coordination with other related government schemes, facilitating smooth and harmonized monitoring of smart cities projects undertaken through convergence. In response to this suggestion, the ministry acknowledged that coordination has posed challenges in some areas and is therefore working to suggest changes in the governance of special purpose vehicles (SPVs) to the states, including adjustments to the board of directors, articles of association and rules of business, to improve inter-departmental coordination.

Noting that the housing and urban affairs ministry has conducted impact assessment studies on the outcomes of convergence projects, the panel has sought the information on the specific changes made in the governance of SPVs and the results of the assessment studies on convergence projects, with follow-up actions taken thereon.