Rajasthan & MP forms Special Purpose Vehicles for implementation of Smart City Plans

By Accommodation Times News Services

Smart City LogoMadhya Pradesh and Rajasthan have taken the lead in setting up Special Purpose Vehicles (SPV) for the implementation of Smart City Plans of the cities who have won in the first round of competition for selection of cities. Ministry of Urban Development has been informed that SPVs have been set up for Jabalpur, Indore and Bhopal in Madhya Pradesh and Jaipur and Udaipur in Rajasthan. These cities have been among the first batch of 20 winners of Smart City Challenge Competition announced on January 29,2016.

Ministry has also been informed that SPVs for the remaining 15 cities will be formed in the next two weeks. Ministry of Urban Development will release Rs.200 cr for each of the 20 selected cities only after SPVs are set up.

SPVs to be registered under the Companies Act,2013 will have 50:50 equity by the states and respective urban local bodies. Private equity is also allowed but the management control will rest with the Governments only.

SPVs are required to be set up under Smart City Mission Guidelines to ensure timely and efficient execution of plans with operational freedom. They approve, sanction and execute the projects besides mobilizing resources from various sources.

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