Performance audit ordered into Chandigarh 24x7 water supply project

The Director General of Audit (Central Expenditure) has ordered a comprehensive performance audit of the 24x7 Water Supply Project under the Smart City project here.

The order was issued today after Chandigarh MP and former Union Minister Manish Tewari wrote to the Comptroller and Auditor General of India (CAG), K Sanjay Murthy, emphasising the urgent need for a comprehensive performance audit of the project.

As per the order, the audit will be conducted from November 11 to 14 by a three-member audit team. In his letter to CAG, Tewari stated that this project — funded by public money and supported by international agencies — has failed to deliver on its promises, raising serious concerns regarding financial prudence, implementation efficiency and governance accountability.

Tewari mentioned Chandigarh Smart City Limited (CSCL) was assigned several projects, including a key 24/7 pressurised clean water supply initiative with an estimated total project cost of Rs 591.57 crore.

In 2016, Chandigarh signed an agreement with the Agence Française de Développement (AFD) for cooperation in water supply, sanitation and waste management. Under this framework, the Detailed Project Report (DPR) for the citywide 24/7 water supply project was approved by the Municipal Corporation (MC) in December 2019.

Later, in December 2022, the MC signed another agreement for the phased replacement of 270 km of water pipelines and coverage of 55 District Metering Areas (DMAs) by 2029. This pan-city project was planned with a total expenditure of Rs 510 crore, including an AFD loan of Rs 412 crore (to be repaid over 15 years) and a European Union grant of Rs 98 crore.

However, the Manimajra pilot project, implemented at a cost of Rs 166.06 crore under the Smart City Fund, has completely failed. He said owing to the poor performance of the pilot project, the MC is now considering scrapping the entire citywide project, as not a single area in Manimajra currently receives uninterrupted, high-pressure water supply.

Tewari also noted that in July, following corruption allegations made by Chandigarh BJP president Jatinder Pal Malhotra, the UT Vigilance Department initiated an inquiry. However, the MC provided only incomplete records, consisting merely of tender documents and noting files, instead of the complete project documentation.