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SPV to be set up soon for smart city project

Image result for trichy top viewThe Tiruchi City Corporation has begun the process of forming a Special Purpose Vehicle (SPV) for executing the Smart City project.

As per the policy documents of Smart Cities Mission of the Ministry of Urban Development, it is mandatory to float a SPV for implementing the project from planning to execution. It will plan, appraise, approve, release funds, implement, manage, operate, monitor and evaluate the smart city development projects.

The SPV will have a full time Chief Executive Officer with the nominees of State and Central governments, and it has to be registered with the Companies Act. Besides using the government grants for infrastructure building, the SPV will have powers to raise private equity and funds for the projects. These could be executed through joint ventures, subsidiaries and public-private partnership.

It is learnt that senior officials of Tiruchi Corporation visited Chennai on Tuesday for a discussion with the senior officials of the Commissionerate of Municipal Administration to evolve the modalities for forming the Special Purpose Vehicle.

N. Ravichandran, Commissioner cum Special Officer, Tiruchi Corporation, told The Hindu that he had received a detailed instruction manual for forming SPV. Steps had been initiated to register the SPV under the Companies Act.

A senior IAS officer would be the Chairman of SPV. Tiruchi Corporation Commissioner would be the Managing Director. The Central Government would also nominate a person for it. Similarly, a number of persons, who were directly associated with the Corporation, would be made as members.

Mr. Ravichandran said a clear picture on formation of SPV would emerge within a two weeks. Formation of SPV would be completed within July. A seven sq km area in and around Rockfort temple would be the focus of area development plan of the Smart City project. It would address all issues including traffic congestion, parking, open drainages, roads and others. Chathiram Bus Stand and Gandhi Market would also be remodelled.

The Government had asked to re-modify the Smart City proposal with some changes. The re-modified plan would be submitted to the State government within 15 days.

Source:http://www.thehindu.com/news/cities/Tiruchirapalli/spv-to-be-set-up-soon-for-smart-city-project/article19220066.ece

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