MP, Rajasthan set up SPVs for implementation of Smart City Plans
Madhya Pradesh and Rajasthan Government have set up Special Purpose Vehicles (SPV) for the implementation of Smart City Plans.
SPVs have been set up for five cities – Jabalpur, Indore and Bhopal in Madhya Pradesh and Jaipur and Udaipur in Rajasthan.
These cities are among the first batch of 20 winners of Smart City Challenge Competition held by the Union Ministry of Urban Development. The Ministry will release 200 crore rupees for each of the 20 selected cities only after SPVs are set up.
Smart Cities Project
The Smart Cities mission is a pet project of Prime Minister Narendra Modi that seeks to improve infrastructure and service delivery of selected cities through application of Information and Communication Technology (ICT) and e-governance. Urban local Bodies (ULBs) and State Governments will play a key supportive role in the development of Smart Cities.
Special Purpose Vehicles (SPV)
- SPVs must be registered under the Companies Act, 2013 to ensure timely, cost-effective and efficient execution of smart city projects with operational freedom.
- They will ensure that the qualities of the outcomes of these smart city projects are benchmarked against global standards.
- SPVs shall have 50:50 equity that will held by the states and respective urban local bodies.
- Private equity is also allowed but the management control will rest with the Governments only.
- SPVs will be headed by a CEO and shall approve, sanction and execute the projects besides mobilizing resources from various sources.