In an embarrassment to the Karnataka government, the Comptroller and Auditor General (CAG) of India has flagged serious deficiencies in tendering processes and financial management in the Yettinahole Integrated Drinking Water Project in Hassan district, being implemented at a total cost of ₹23,251.66-crore for a decade now. Financial viabilityThe CAG report, tabled in the Legislative Assembly on Thursday (January 29, 2026) , revealed that nearly 80% of the project works were awarded to contractors without assessing their financial capacity, bid capacity, or work experience. This concentration of contracts posed a significant risk to timely completion of the project, the report said. Cost escalationAccording to the report, the project cost escalated by 179%, rising from ₹8,323.50 crore in 2012 to ₹23,251.66 crore in 2023. The CAG warned that Visvesvaraya Jala Nigam Ltd. faces financial uncertainty, with an estimated ₹7,954.63 crore still required to complete the project.