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Now race to beat the SPV formation deadline

Mon, 2016-03-21 17:48 -- SCC India Staff

 deadline

The smart cities mission is back to seeking its requirements on its set deadline. The 20 cities selected under the mission have to form their special purpose vehicles (SPVs) before 31st March 2016.

The Madhya Pradesh government has appointed three CEOs for the Smart City projects in Bhopal, Indore and Jabalpur. Chandramauli Shukla, Rohan Saxena and Gajendra Singh Nagesh will be chief executive officers of the Smart City projects in Bhopal, Indore and Jabalpur respectively. These officers played a pivotal role in developing the smart city proposals of their respective municipal corporations.

These names have been finalised and sent to the Centre, for their appointment as CEOs of the Special Purpose Vehicles (SPVs) for the cities. Bhopal, Indore and Jabalpur have been among the first batch of 20 winners of the Smart City Challenge Competition announced on January 29, 2016.

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

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

Madhya Pradesh has set up a 12-member SPV for each of the three cities. The respective District Collector will be the Chairman of the Board and respective Municipal Commissioner will be Executive Director. Other members include representatives of Central and state governments, nominee of the Mayor, 2 Independent Directors, representatives of DISCOMs, Public Health Engineering Department, etc.

Madhya Pradesh has the largest number of cities selected in the first phase of the Smart City project.
The state has decided to complete one Smart City proposal by June 25 after a meeting held with seven SPV members of each city. Each Smart City company will have an initial corpus of Rs 384 crore.

Meanwhile, the other states which had cities selected under the Smart Cities programme have also begun to get into the act.

The Odisha government has appointed R Vineel Krishna, a 2005-batch IAS officer, as the chief executive officer of an SPV that would work for developing Bhubaneswar as a Smart City. The SPV will be given powers to implement the proposed development projects under the Smart City programme. It will plan, appraise, approve, release funds, implement, manage, operate, monitor and evaluate the Smart City development projects.

On March 16, Kerala constituted Cochin Smart Mission Ltd, which will act as an SPV for the city. It has a seven-member director board consisting of Kochi Mayor Soumini Jain, Additional Chief Secretary V J Kurian, Kochi Metro Rail Ltd MD Elias George, Principal Secretary (ports) James Varghese, State Mission Director P M Mohammed Hanish, Chief Minister's Adviser Jiji Thomson, Corporation Secretary Amit Meena and KWA Managing Director Ajit Patil. The board will be headed by the chairman, who will be selected from among the directors. The CEO will be appointed from outside. The first meeting of the board of directors will be held before March 31.